To Jellicoe the position was by no means clear when he set out. The evidence pointed to another cruiser raid being afoot, but a misleading telegram sent from the Admiralty during the forenoon of May 31 informed him that directional wireless signals placed the German fleet flagship in the Jade river, thereby leaving him with the impression that there was no reason for undue haste; he, therefore, regulated his speed so as to economise his destroyers' fuel consumption.

Owing to the greater visibility to the westward, Hipper had already sighted the six British battle cruisers, and now realised that they were heading to cross his stern and cut off his line of retreat, and that he must hasten to fall back on the battle fleet. Beatty, knowing nothing of the greater forces to the south, could only regard this as a golden opportunity for getting to grips with the enemy. There followed a hot running fight to the southward between the opposing battle cruisers (see fig. 2). The 5th Battle Squadron under Rear-Adm. Evan-Thomas had, unfortunately, been stationed by Beatty 5 miles on the opposite bearing to that on which the enemy was sighted. A further delay in bringing this powerful force into action was caused through ineffective signalling in the "Lion." The result of this division of forces was that the British battle cruisers suffered heavily instead of the German squadron being annihilated.
At 3.34 P.M. Beatty formed the battle cruisers into single line, increased to 25 knots and made for the enemy. About this time the "Engadine" sent up a seaplane which reported Hipper's course south. This is noteworthy as being the only occasion on which a British aircraft was used throughout the operations, and the report failed to reach the battle cruiser's flagship. At 3.45 however, the enemy could be made out distinctly from the "Lion," and Beatty formed his ships on a line bearing north-west to clear the smoke and bring their guns to bear, while he turned to E.S.E. At about 3.48 fire was opened almost simultaneously on both sides at a range of approximately 16,000 yards.
The British battle cruisers were at considerable disadvantage, for they showed up well against the western sky, while visibility to the eastward was poor for observing their fire. German ac counts agree that the British firing during this part of the action was somewhat ragged, while they pay high tribute to that of the 5th Battle Squadron as it eventually got into range. The better protection of the enemy's battle cruisers and the better shell with which the heavy guns of his fleet generally were provided stood him in good stead, while confusion in the interpretation of the "Lion's" signals for distribution of fire added to the disadvantages of the British battle cruisers.