On our way along the coast we received information that the Antonio was about to sail from Callao for Cadiz, with a considerable amount of treasure, so that, in the hope of intercepting her, we cruized just out of sight of the port till the 21st of February.  As she did not make her appearance, preparations were made to put in execution a plan which had been formed to attack the Spanish shipping during the Carnival, when, in the height of that festival, less vigilance than ordinary might reasonably be expected.  We had previously ascertained that the naval force in the harbour consisted of the frigates Esmeralda and Venganza, a corvette, three brigs of war, a schooner, twenty-eight gun-boats, and six heavily-armed merchantmen; the whole being moored close in under the batteries, which mounted upwards of 160 guns, whilst the aggregate force of the shipping was 350 guns, as appeared from an official account of their armament.

A direct attack with our small force seemed, therefore, a thing not at present to be attempted; but in its place I had formed the design to cut out the frigates during the carnival, which terminated on the 23rd.  Knowing that two North American ships of war were daily expected at Callao, it was arranged to take in the O’Higgins and Lautaro, under American colours, leaving the San Martin out of sight behind San Lorenzo, and if the ruse were successful, to make a feint of sending a boat ashore with despatches, and in the meantime suddenly to dash at the frigates, and cut them out.  Unfortunately, one of those thick fogs, so common on the Peruvian coast, arose, in which the Lautaro parted company, and did not rejoin the flag-ship for four days afterwards, when the carnival being at an end, our plan was rendered abortive.

The fog, which in the climate of Peru often continues for a considerable length of time, lasted till the 29th, when hearing heavy firing, and imagining that one of the ships was engaged with the enemy, I stood with the flag-ship into the bay; the other ships, imagining the same thing, also steered in the direction of the firing, when the fog clearing for a moment, we discovered each other, as well as a strange sail near us; which, when taken possession of by the flag-ship, proved to be a Spanish gun-boat, with a lieutenant and twenty men, who, on being made prisoners, informed us that the firing was a salute in honour of the Viceroy, who had that morning been on a visit of inspection to the batteries and shipping, and was then on board the brig of war Pezuela, which we saw crowding sail in the direction of the batteries.

The fog again coming on, suggested to me the possibility of a direct attack, which, if not altogether successful, would give the Spaniards such an idea of our determination of purpose, as would inspire them with respect for the Chilian squadron, and might induce their ships to refrain from the protection of their commerce; in which case a blockade would prevent the necessity of separating our small force in chase of them, should they evince a desire of getting to sea.