[Footnote 175:  In modern maps the town of Chepo is placed on the right bank of the river, as descending the stream, and only about five miles up the river.—­E.]

Our men returned from Cheapo on the 24th, having taken that town without opposition, but found nothing there worth mention.  The 25th we were joined by Captain Harris, and arrived at Taboga on the 28th, when, finding ourselves nearly a thousand strong, we meditated an attack on Panama; but, being informed by our prisoners that the Spaniards there had received considerable reinforcements from Porto Bello, that design was laid aside.  The 25th May we had intelligence from some prisoners that the Lima fleet was daily expected, whereupon we anchored in a narrow channel, a mile long and not above seven paces wide, formed by two or three small islands on the south side of the island of Pacheque.  Our fleet now consisted of ten sail, only two of which were ships of war, that commanded by Captain Davis having 36 guns and 156, while Captain Swan’s carried 16 guns and 140 men.  The rest were only provided with small arms, and our whole force amounted to 960 men.  We had also a fire-ship.

Hitherto we had the wind at N.N.E. with fair weather, but on the 28th of May the rainy season began.  On that day, about 11 a.m. it began to clear up, and we discovered the Spanish fleet three leagues W.N.W. from the island of Pacheque, standing to the east, we being then at anchor a league S.E. from that isle, between it and the continent.  We set sail about three p.m. bearing down upon the Spaniards right before the wind, while they kept close upon a wind to meet us.  Night coming on, we only exchanged a few shots at that time.  As soon as it began to be dark, the Spanish admiral shewed a light at his top, as a signal for his fleet to anchor.  In half an hour this was taken down; but soon after a light appeared as before, which went to leewards, which we followed under sail, supposing it to be still the admiral; but this was a stratagem of the Spaniards to deceive as, being at the top-mast head of one of their barks, and effectually succeeded, as we found in the morning they had gained the weather-gage of us.  They now bore down upon us under full sail, so that we were forced to make a running fight all next day, almost quite round the bay of Panama, and came at length to anchor over against the island of Pacheque.  As Captain Townley was hard pressed by the Spaniards, he was forced to make a bold run through the before-mentioned narrow channel, between Pacheque and the three small islands; and Captain Harris was obliged to separate from us during the fight.  Thus our long-projected design vanished into smoke.