The Chilian squadron at Mexillones, having coaled, put to sea on the night of the 7th, in two divisions. The first division, consisting of the slower vessels, the “Blanco,” “Covadonga,” and “Mathias Cousiño,” sailed at 10 P. M., and steered down the coast towards Antofagasta; the second division, under commander La Farré, consisting of the “Cochrane,” “O’Higgins,” and “Loa,” sailing on the morning of the 8th, before daylight, with orders to cruise twenty-five miles off Point Angamos. This was done in consequence of telegraphic instruction from the Chilian authorities. The Commodore had intended to move south, along the coast, in similar divisions, the first skirting the coast, and looking in at the bays, while the second kept pace with them, about forty miles off shore. The result was the same, whichever plan had been followed. At half-past three in the morning of the 8th of October, the weather being fine and clear, the smoke of two vessels approaching, under Point Letas, and distant about six miles, was reported from the top of the “Blanco.” At daylight the enemies recognized each other. The “Huascar” ran to the southwest for an hour, under full speed, making nearly eleven knots; the “Blanco” and “Covadonga” following, and making less than eight knots. The “Mathias Cousiño” was first sent in towards Antofagasta, but, later, turned and followed her consorts. Riveros, the Chilian Commodore, soon saw that such a chase was hopeless; but still, on the chance of an accident to the machinery of the “Huascar,” or her consort, or of their turning to the northward, and being cut off by his second division, he determined to continue it. The Peruvians could not afford to run any risks with their ships. If the “Huascar” was lost, it would entail serious consequences to the Peruvian cause; and it was therefore proper for Grau to attempt escape. Finding that he could outrun his pursuers, he reduced his speed, and turned his ships’ heads to the northward. Not very long after this, smoke was seen to the northwest, and, having diverged a little from her course, to reconnoitre, the “Huascar” recognized the Chilian “Cochrane,” and her consorts. At about the same time the “Huascar” was seen from the “Cochrane,” and the “Loa” was sent to reconnoitre. Grau had supposed that the “Cochrane” only steamed eight knots, and thought he could easily run away from her, so he stood toward the “Loa,” for a short time Finding, however, that the “Cochrane” was changing her bearings more rapidly than he had anticipated, he stood more to the eastward, and ordered “full speed.” The “Union,” which had been on the “Huascar’s” port quarter, now, at about 8 A. M., crossed her stern, and passed to starboard of her, at full speed. This vessel made the best of her way to Arica; followed, until dark, by the Chilian ships “O’Higgins” and “Loa.”