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On 30 October, before the battle but due to communications delays too late to have any effect, Admiral Jackie Fisher was re-appointed First Sea Lord, replacing Prince Louis of Battenberg, who, along with Churchill, had been preoccupied with fighting to keep his position as First Sea Lord in the face of widespread concern over the senior British Admiral being of German descent. Battenberg was a proven and reliable admiral but was replaced to appease public opinion. The crisis drew the attention of the most senior members of the Admiralty away from the events in South America: Churchill later claimed that if he had not been distracted, he would have questioned the intentions of his admiral at sea more deeply.
A signal from Cradock was received by Churchill on 27 October, advising the Admiralty of his intention to leave Canopus behind because of her slow speed and, as previously instructed, to take his remaining ships in search of Spee. He re-stated that he was still expecting reinforcements in the form of Defence, which he had previously been told was coming and that he had given orders for her to follow him as soon as possible. Although Defence had once been sent to reinforce Cradock, it had then been recalled part way, returned to the Mediterranean and then been sent again to form part of a new squadron patrolling the eastern coast of South America. A misunderstanding had arisen between Cradock and the Admiralty over how ships were to be assigned and used. Cradock believed he was expected to advance against Spee with those forces he had, whereas the Admiralty expected him to exercise caution, using Canopus for defence and merely to scout for the enemy or take advantage of any situation where he might come across part of the enemy force. Churchill replied to the signal, telling Cradock that Defence was to remain on the east coast and that Cradock was considered to have sufficient forces for his task, making no comment about his plan to abandon Canopus. Churchill had passed on the message to the Admiralty staff, saying he did not properly understand what Cradock intended.
Cradock probably received Churchill's reply on 1 November with the messages collected by Glasgow at Coronel, giving him time to read it before the battle. Thus, Cradock would have taken the message as final confirmation that he was doing what was expected. Departing from Stanley he had left behind a letter to be forwarded to Admiral of the Fleet Sir Hedworth Meux in the event of his death. In this, he commented that he did not intend to suffer the fate of Rear Admiral Ernest Troubridge, a friend of Cradock, who at the time was awaiting court-martial for failing to engage the enemy. The governor of the Falklands reported that Cradock had not expected to survive, as did the governor's aide.