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The fog, again coming on, suggested to me the possibility of a direct attack. Accordingly, still maintaining our disguise under American colours, the O'Higgins and Lautaro stood towards the batteries, narrowly escaping going ashore in the fog.

On the 22nd of December my flag was hoisted on board the O'Higgins, after which the greatest despatch was used to get the squadron ready for sea. Anxious to avoid delay, on the 16th of January I sailed with four ships only, the O'Higgins, San Martin, Lautaro, and Chacabuco; leaving Admiral Blanco to follow with the Gaharino, Aracauno, and Puyrredon.

On the 27th, we entered the river Guayaquil, and leaving the Lautaro and the brigs outside, the flag-ship crowded all sail during the night though without a pilot arriving next morning at the island of Puna, under which two large vessels were anchored, and instantly attacked, when, after a brisk fire of twenty minutes, they struck, proving to be the Aguila, of 20 guns, and Vigonia, of 16 guns, both laden with timber, destined for Lima.

The Galvarino was now sent to sea without my permission, and without an Englishman in her. The Lautaro, the pretended store-ship, was also being got ready for sea, when I addressed the following note to Captain Worcester, who commanded her: Memo,

The boats of the Independencia are to turn adrift all the outward Spanish merchant ships; and the boats of the O'Higgins and Lautaro, under Lieutenants Bell and Robertson, are to set fire to one or more of the headmost hulks; but these are not to be cut adrift, so as to fall down upon the rest." By the cutting of the Esmeralda's cables, not one of these objects was effected.

"The wind falling light, I did not venture on laying the flag-ship and the Lautaro alongside the Spanish frigates, as I at first intended, but anchored with springs on our cables, abreast of the shipping, which was arranged in a half-moon of two lines, the rear-rank being judiciously disposed so as to cover the intervals of the ships in the front line.

In this affair the mast of the Araucano was struck by a round shot, and severely damaged the circumstance being merely mentioned to shew the state in which the squadron was equipped; the only means of repairing the damage being by fishing the mast with an anchor-stock taken from the Lautaro, whilst an axe had to be borrowed for the purpose from the flag-ship!

Having received directions from the Supreme Government to cause the Lautaro to be placed as a store-ship, under the command of the Governor, and observing that the said order is in process of violation by the preparations making for sea; you are hereby required and directed to hoist my flag, and obey all such orders as you shall receive from me on the service of the State.

Naturally of a compassionate disposition, and desirous of obliging Lautaro to whom he owed this important victory, and who now interceded for Valdivia, Caupolican was disposed to have shewn mercy to his vanquished foe; but while deliberating on the subject, an old ulmen of great authority among the Araucanians, indignant at the idea of sparing the life of their most dangerous enemy, dispatched the prisoner with a blow of his war club, saying that it would be madness to trust the promises of an ambitious enemy, who would laugh at his oaths when once he escaped the present danger.

Having no control over the disposition of the troops, I was obliged to submit; and on the 30th, detached the San Martin, Galvarino, and Araucano, to convoy the transports to Ancon, retaining the O'Higgins, Independencia, and Lautaro, as if for the purpose of blockade.