"At 2.20 p.m. reports were received from Galatea (Commodore Edwyn S. Alexander-Sinclair, M.V.O., A.D.C.), indicating the presence of enemy vessels. The direction of advance was immediately altered to SSE., the course for Horn Reef, so as to place my force between the enemy and his base.
The German force.
"At 2.35 p.m. a considerable amount of smoke was sighted to the eastward. This made it clear that the enemy was to the northward and eastward, and that it would be impossible for him to round the Horn Reef without being brought to action. Course was accordingly altered to the eastward and subsequently to north-eastward, the enemy being sighted at 3.31 p.m. Their force consisted of five battle-cruisers.
Battle begins at long range.
"After the first report of the enemy, the 1st and 3rd Light-cruiser Squadrons changed their direction, and, without waiting for orders, spread to the east, thereby forming a screen in advance of the Battle-cruiser Squadrons and 5th Battle Squadron by the time we had hauled up to the course of approach. They engaged enemy light-cruisers at long range. In the meantime the 2nd Light-cruiser Squadron had come in at high speed, and was able to take station ahead of the battle-cruisers by the time we turned to ESE., the course on which we first engaged the enemy. In this respect the work of the Light-cruiser Squadrons was excellent, and of great value.
Scout reports enemy force considerable.
"From a report from Galatea at 2.25 p.m. it was evident that the enemy force was considerable, and not merely an isolated unit of light-cruisers, so at 2.45 p.m. I ordered Engadine to send up a seaplane and scout to NNE. This order was carried out very quickly, and by 3.8 p.m. a seaplane was well under way; her first reports of the enemy were received in Engadine about 3.30 p.m. Owing to clouds it was necessary to fly very low, and in order to identify four enemy light-cruisers the seaplane had to fly at a height of 900 feet within 3,000 yards of them, the light-cruisers opening fire on her with every gun that would bear.
Line of battle formed.
"At 3.30 p.m. I increased speed to 25 knots, and formed line of battle, the 2nd Battle-cruiser Squadron forming astern of the 1st Battle-cruiser Squadron, with destroyers of the 13th and 9th Flotillas taking station ahead. I turned to ESE., slightly converging on the enemy, who were now at a range of 23,000 yards, and formed the ships on a line of bearing to clear the smoke. The 5th Battle Squadron, who had conformed to our movements, were now bearing NNW., 10,000 yards. The visibility at this time was good, the sun behind us and the wind SE. Being between the enemy and his base, our situation was both tactically and strategically good.
Running fight to southward.