[4][5] In January 1797 the convoy had been attacked by the French squadron in the East Indies, comprising six frigates commanded by Contre-amiral Pierre César Charles de Sercey.

In the ensuing Bali Strait Incident the commander deceived Sercey into believing that the unescorted convoy contained disguised ships of the line and the French admiral retreated, only learning of his error on his return to Île de France.

[7] A number of merchant ships had gathered at Bombay in the spring of 1797 in preparation for the trip to Macau to load trade goods and join the China Fleet.

[7] With his convoy safely at anchor in Macau and the China Fleet several weeks from sailing, Cooke decided to reconnoitre Manila and make observations on the port and the Spanish squadron based there.

[12] This round trip was essential to the maintenance of the Spanish Empire in the East Indies, which operated at an enormous financial loss only mitigated by the substantial subsidy from New Spain.

[13] Spanish dollars were the accepted currency across most of the East Indies, and disruption of this financial system could have profound effects on regional trade; but British sailors had nevertheless been attacking the Manila galleons since Thomas Cavendish in 1587.

To Cooke's disappointment he could also see the Manila galleon, Marquesetta being unloaded at the Cavite docks and another valuable merchant ship Rey Carlos aground in the harbour.

[18] The Spanish had learned only shortly before Cooke's arrival that the British frigate HMS Resistance under Captain Edward Pakenham was in Philippine waters and had decided to remove the valuable cargo from the treasure ship rather than risk an attack.

Malcolm, like Cooke, spoke French fluently and with Bernard translating was able to persuade the officer in charge that the new arrivals were Forte and Prudente seeking supplies and Spanish reinforcements for commerce raiding operations.

[21] Cooke then joined the party on the deck of Fox, claiming to be Commodore Latour, a French officer who, unknown to the Spanish, had been killed in the action of 9 September 1796 off Sumatra.

This vessel was the personal barge of the Spanish commander at Cavite, Rear-Admiral Don Ignacio María de Álava, who was not aboard, but who sent a message via an aide in a third boat.

Another boat grounded on a sandbar and became stuck; so with his force in disarray, as 250 villagers armed with lances ambushed and drove the British from the beach,[25] Malcolm called off the operation.

Cooke complained to Sultan Kibab Sahriyal at Kuta Wato and the captured sailors were eventually recovered, although not before Sybille and Fox had sailed for China to escort the merchant convoy back to India.

[26] Cooke's opportunistic diversion had determined that the Spanish forces in the Philippines posed no immediate threat, although the mission had cost 18 lives: Admiral Rainier later expressed his satisfaction with the outcome in a letter to the Admiralty.

[17] More might have been achieved with reinforcements: Historian C. Northcote Parkinson suggests that had Cooke's squadron united with Resistance together they may have been able to destroy the disarmed Spanish warships at Cavite.

[19] Historian Richard Woodman was critical of the mission, considering the operation to have "no glorious outcome" and citing the failure to capture the treasure ships as its greatest short-coming.

During the ensuing year Resistance was destroyed by an accidental explosion in July in the Bangka Strait,[28] and the majority of Rainier's forces were focused on disrupting the French occupation of Suez in the Red Sea.

[29] This diversion of British resources created gaps in the coverage in merchant shipping and Sercey was able to send the frigate Preneuse and corvette Brûle-Gueule to Manila late in the year to join the repaired Spanish squadron.

The British commander Captain William Hargood counterattacked, advancing on the Franco-Spanish force which retreated during the day and disappeared under cover of darkness that evening in the Wanshan Archipelago.