The dispositions were designed to intercept the ship, whether her mission were mine-laying near our bases, or an attempt to pass out into the Atlantic. The _Patia_ and _Columbella_, of the 10th Cruiser Squadron, were directed to patrol a line running north-east from Lat. 61.45 N., Long. 0.50 E., and ships of the same squadron on the C Patrol line were directed to extend this line to the north-eastward. The _Alcantara_ and _Andes_, of the same squadron, already on a special patrol line, were ordered to remain in their position till further orders. Two ships of the 1st Light Cruiser Squadron and four destroyers left Rosyth at 8 P.M. on the 28th to patrol the area covering the Farn Island--Skaw and the May Island--Skaw trade routes, working to the eastward. Early on the 29th the _Comus_ and the _Calliope_, of the 4th Light Cruiser Squadron, which had sailed on the 28th with two destroyers for areas in the vicinity of Lat. 58.38 N., Long. 2.30 E., and Lat. 59.20 N., Long. 3.0 E. respectively, were directed to patrol lines 40 miles long, running 50° to 230° respectively from a position in Lat. 61 N., Long. 1.10 E. The _Blanche_, which had also sailed, was ordered to a position Lat. 61.30 N., Long. 0.0. The _Minotaur_ and a destroyer were sent to patrol the Fair Island passage during daylight on the 29th. Steps were also taken to cover the approaches to the Pentland Firth against mine-laying. At 8.55 A.M. on the 29th the _Andes_, Captain G. B. Young, R.N., reported by wireless that an enemy vessel was in sight in Lat. 61.58 N., Long. 1.8 E., and gave her course, speed and description; her enemy character was assumed owing to her movements. The _Alcantara_, Captain T. E. Wardle, R.N., was not at this time in sight of the _Andes_, but sighted her at 9.10 A.M. chasing a strange vessel, joined in the pursuit, and, at 9.15 A.M., being then about 6,000 yards from her, ordered her to stop. She complied and informed the _Alcantara_ that she was the Norwegian s.s. _Rena_ from Rio to Trondjhem. She was flying the Norwegian flag, which was also painted on her sides. At 9.40 A.M. the _Alcantara_, then about 2,500 yards on the quarter of the stranger, began to hoist out a boat for the purpose of boarding. At this moment the other vessel opened a heavy fire from her hitherto concealed armament, throwing her Norwegian ensign and staff overboard and hoisting a German ensign at the main. But she still showed the Norwegian flag on her sides, where it was displayed throughout the action. At the close range at which fire was opened hitting commenced immediately, and as the first hits on the _Alcantara_ cut all her communications, Captain Wardle experienced great difficulty in passing orders to the guns. But the enemy’s fire was returned quickly and with effect, in spite of the difficulty of communication. Both ships went ahead and a hot action ensued; the enemy fired torpedoes, one of which hit the _Alcantara_ between the boiler-rooms at about 10 A.M., causing