I have the honour to report that whilst on escort duty with the convoy under the charge of Captain Silver, H.M.A.S. _Melbourne_, at 6.30 a.m. on Monday, Nov. 9th, a wireless message from Cocos was heard reporting that a foreign warship was off the entrance. I was ordered to raise steam for full speed at 7.0 a.m. and proceeded thither. I worked up to twenty knots, and at 9.15 a.m. sighted land ahead and almost immediately the smoke of a ship, which proved to be the H.I.G.M.S. _Emden_ coming out towards me at a great rate. At 9.40 a.m. fire was opened, she firing the first shot. I kept my distance as much as possible to obtain the advantage of my guns. Her fire was very accurate and rapid to begin with, but seemed to slacken very quickly, all casualties occurring in this ship almost immediately. First, the foremost funnel of her went, secondly the foremast, and she was badly on fire aft, then the second funnel went, and lastly the third funnel, and I saw she was making for the beach on North Keeling Island, where she grounded at 11.20 a.m. I gave her two more broadsides and left her, to pursue a merchant ship which had come up during the action. 2. Although I had guns on this merchant ship at odd times during the action, I had not fired, and as she was making off fast, I pursued and overtook her at 12.10, firing a gun across her bows and hoisting International Code Signal to stop, which she did. I sent an armed boat, and found her to be the ss. _Buresk_, a captured British collier, with 18 Chinese crew, 1 English steward, 1 Norwegian cook, and a German prize crew of 3 officers, 1 warrant officer, and 12 men. The ship unfortunately was sinking, so I took all on board, fired four shells into her, and returned to _Emden_, passing men swimming in the water, for whom I left two boats I was towing from _Buresk_. 3. On arriving again off _Emden_, she still had her colours up at mainmast head. I inquired by signal, International Code, "Will you surrender?" and received a reply in Morse, "What signal? No signal books." I then made in Morse, "Do you surrender?" and subsequently, "Have you received my signal?" to neither of which did I get an answer. The German officers on board gave me to understand that the captain would never surrender, and therefore, though very reluctantly, I again fired at her at 4.30 p.m., ceasing at 4.35, as she showed white flags and hauled down her ensign by sending a man aloft. 4. I then left Emden and returned and picked up the _Buresk's_ two boats, rescuing two sailors (5.0 p.m.) who had been in the water all day. I returned and sent in one boat to _Emden_, manned by her own prize crew from _Buresk_ and one officer, and stating I would return to their assistance next morning.