[1] The battle saw the last remnant of the German East Asia Squadron destroyed, when SMS Dresden was cornered and scuttled in Cumberland Bay.

After escaping from the Battle of the Falkland Islands, SMS Dresden and several auxiliaries retreated into the Pacific Ocean in an attempt to resume commerce raiding operations against Allied shipping.

On 8 March, his ship low on supplies and in need of repairs, the captain of Dresden decided to hide his vessel and attempt to coal in Cumberland Bay near the neutral island of Más a Tierra.

However, Charles Stewart, the signals officer, managed to decode a message from Dresden for a collier to meet her at Juan Fernandez on 9 March.

After returning fire for a short period of time, the captain of Dresden decided the situation was hopeless as his vessel was vastly outgunned and outnumbered, while stranded in the bay with empty coal bunkers and worn out engines.