Thanks to John Bryden (bryden@acs.ucalgary.ca) for taking the trouble of typing this out.

12.2.6.1   Open Sea Combat:   These rules cover all naval combat except
blockade battles and raids on ports. These replace 6.3.3 and 6.3.4 in the
EIA rules. 

12.2.6.1.1 Step One - Selections of Naval Tactical chits: Both players 
select a naval tactical chit. Both attacker and defender select from an 
identical set of chits: 
	
linear defence
linear attack
melee.

Doctrine: Each major power has a standard tactic for naval battles.  When using this tactic, the fleet receives a +1 to its combat die rolls.  If a fleet is of mixed major powers they receive the +1 if and only if they have the same doctrine and use that tactic.  



12.2.6.1.2 Step Two-Reveal chits: Both players now reveal chosen chits
and cross-index them on the Tactical Naval Chart. 

12.2.6.1.3 Step Three-Reveal Forces/Morale levels: Both players reveal
their forces and determine final morale levels. 

12.2.6.1.3.1 Declare force composition: Both players simutaneously
reveal the exact size and composition of their fleet counters.

12.2.6.1.3.2 Determine final morale levels. 

12.2.6.1.4 Step Four-Find combat table: The tactcial naval chart
refers each player to a series of three sets of combat tables on the
combat  resolution chart. These tables are used in the same fashion
as for land combat.  

12.2.6.1.4.1  Melee tables to use: Until the melee force closes, the
first set of of combat resolution on the tactical naval chart is
used. Once it has closed with the enemy, it uses the second set of
combat resolution tables. The tactical naval chart indicates the die
roll required to close after each tactical round.    

12.2.6.1.5 Step Five-Combat resolution: Identical to that in 7.5.2.9
for land combat, with the exception that A fleet which starts its turn in port receives a -1 die roll modifier during naval combat and casualties inflicted represent ships that are disabled. Disabled ships may not
participate in further rounds of combat. [Note that this is where the
modifiers for numerical superiority apply. -M.]

12.2.6.1.6 Step Six-Victory and defeat: A side in a naval combat is
defeated when all of its ships are disabled, or when its cumulative
morale loss reaches or exceeds it final morale level (the force is
then said to be broken). The battle immediately ends with the other
side declared the victor. This may occur at the end of any round of combat. 

12.2.6.1.6.1 Continuing battles: If, at the end of a combat round,
neither side has been defeated the battle continues and both players
repeat the sequence commencing at step 5. 

12.2.6.1.6.2 Inconclusive battles: If after three rounds of combat,
neither side has been defeated the battle ends inconclusively. Neither
side is defeated and neither is declared the victor. 
There is no second day of combat.

12.2.6.1.6.3 Political points for winning / losing an Open Sea combat:
The victor now gains political points and the defeated loses them in
accordance with 6.3.4.2, based on fleet counters rather than corps.
Post these adjustments on the political status display. If there is no
victor, no adjustments are made.   
  
12.2.6.1.7 Step Seven-Gnereal Chase: The victor in any open sea cimbat
may declare an open chase, akin to the pursuit after a land battle.
The effect of a general chase is determined by a die roll as declared
on the Naval general chase table. Find the victor's total morale loss
on the table and roll once on the combat resolution table as
indicated. Note that only un-dsabled ships may participate in the
general chase.  Note also that ships using linear defence must
subtract 1 from their combat resolution table die roll. inflict only
the indicated casualties on the fleets and ignore any morale loss.

12.2.6.1.8 Step Eight-Naval retreat and pursuit:  If there is a victor
in the battle, this step is performed as described in 6.3.5. If
neither side is declared the victor, both forces may retreat or remain
in the sea zone and no pursuit is allowed. An intercepted fleet which
has not lost a battle may continue to move with any reamaining points.    

12.2.6.1.9 Step Nine-Capturing ships: After an open sea combat,
disabled ships are not automatically eliminated from play.  The victor
gains control of all the defeated side's disabled ships, as well as
retaining possession of his own disabled ships. In the case of no
victor each side retains its own disabled ships.   

12.2.6.1.9.1 A side possessing disabled ships must immediately choose
a port (ports) to which to return them. Any controlled home nation,
conquered or free state port owned by the player or by permission any
such port controlled by an active ally, may be selected. For each
disabled ship, a die is rolled: if the distance to the port in movment
points is greater than or equal to the die roll the diabled ship is
lost en route. (Strike it from the game.) Regardless of the distance
to port a roll of 1 always sinks a disabled ship. A disabled ship
which successfully reaches port is a termed a hulk and must be
refitted before it can be used at sea again.(see 12.8.3 below).
Disabled ships do not need an escort, and move immediately (without
requiring a fleet counter) to the chosen port.    

12.2.6.2 Blockade Battles: When a naval combat occurs in a blockade
box between the blockaded force and the blockading force, the combat
is resolved exactly as in the the open sea combat except that no
tactical chits are chosen. Instead, the following indicates which
combat tables are consulted on the combat resolution chart:    

Blockading force:  5-2  5-2  5-2
Blockaded force:   5-1  5-1  5-1

Additionally, if the blockading force is victorious, there is no
general chase allowed. All surviving blockaded ships are returned to
port.  

12.2.6.3 Port Raids: When a fleet attacks another located in a port,
it is considered a port raid. Port raids are resolved using a modified
sequence of open sea combat. 

12.2.6.3.1 Habor defences: If there is a garrison in the port that is
at war or has denied access to (see 6.3.1.3) the attacking  naval
force, the harbor defences inflict casualties on the attacking force
equal to a single die roll using the 5-2 table on the combat
resolution chart, with the harbor defence number taken as the
strength.     

12.2.6.3.2 Port raid resolution: The surviving attacking ships then
engage the defending ships and hulks in battle. No tactical chits are
chosen. Instead the following indicates which combat tables to use on the
combat resolution chart:   

Attacking force: 5-2 5-2 5-2
Defending force: 1-1 2-1 3-1

The raid lasts for three combat rounds or until the attacking force
breaks or is eliminated. If the defending force breaks, the attacker
continues to attack for the duration of the three rounds but the
defender can no longer reply.   

Victory/defeat in a port raid: To be considered a victor in a port
raid, a force must have both broken(or totally eliminated) the
opposing force and have inflicted more losses than he has received.
If there is a victor political points are adjusted as in 12.2.6.1.6.3.
If neither side can claim victory, the battle is considered to be a
draw and no adjustments are made.    

12.2.6.3.4  Aftermath: Regardless of the outcome of the port raid, the
attacking forces are removed to the blockade box or the nearest sea
area. Both sides retain their own disabled ships and must roll to
return them to port as is usual. there is no general chase after a
port raid.    



12.2.8 Hulks: Unseaworthy but often well armed, many hulks spend the
war years as an inherent part of port defensive schemes. And they were
a matter of some concern to naval strategists, as Nelson's near
disasterous attack on Copenhagen indicates. Their great value lie,
however, that they could quickly and for low cost  be refitted and
returned to duty.     

12.2.8.1 Combat with Hulks: With the exception of defence during a
port raid, hulks take no part in naval combat. During a port raid,
hulks are considered a part of the fleet, therein, temporarily, and
may take part in all three rounds of combat - unless they are again
disabled. Hulks have no morale and are not factored in when
claculating the morale of the defending force. Upon conclusion of the
raid, hulks must be rolled for normally.       

12.2.8.2 Capture/Destruction of Hulks: If any enemy land force
occupies a port  with hulks in it, all such are destroyed.  For hulks
in a port that changes hands due to conquest or cession to a
non-allied power, or are controlled by a power with whom an alliance
is broken, immediately roll one die for each hulk, 1-3 = hulk
destroyed, 4-6 = hulk transfered to the port's new owner(unless friendly
troops are garrisoning the port, in which case the hulks are sunk).      

12.2.8.3 Refitting Hulks: During each money and manpower expenditure
step(8.5), hulks can be refitted. This can be done in all friendly
ports, in controlled minors, both conquered and free. and in ports
controlled by allied nations. The cost is $5 and 1 manpower unit for
each hulk to be made seaworthy, and takes three months to complete.
Refitted hulks immediately become ships and can be assigned to fleets
normally as specified in 5.1.2      

12.2.9. Blockade running:  Running a blockade was a much more common
occurence thn is usually portrayed in EIA.  In the basic rules, it is
impossible for a fleet to evade a blockading force and run for the
open sea; instead they must fight through the blockading force.
Historically, however the blockaded French fleet in Toulon evaded none
other Nelson himself on their way to Egypt in 1798 and again in 1805
during Villeneuve's sortie to the Caribbean. The addendum to the
blockade rules below allow a fleet to risk a blockade battle (with its
inferior odds) for the chance of slipping past the blockading force.        

12.2.9.1 Running a blockade: A blockaded force wishing to run a
blockade rolls one die. On a roll of one or less, the force has
successfully slipped past the blockading force and may continue its
move normally. On a roll of 2-6 it is intercepted and must return to port or fight a normal blockade battle.

The chart to use for the naval combat is missing in The General it came with. It was included in the next issue. Here it is:

Advanced Naval Rules Combat Table

		ATTACKER
		Melee	Linear Attack	Linear Defense
DEFENDER	Melee	A 1-1 4-2 5-2 D 1-1 4-2 5-2	1st A 2-1 3-2 4-3 1st D 1-1 1-1 1-1   2nd A - 2-1 2-1 2nd D - 3-3 4-4	1st A 3-2 4-2 5-3 1st D 1-1 1-1 1-1   2nd A - 1-1 1-1 2nd D - 4-4 4-4
	Linear Attack	1st A 1-1 1-1 1-1 1st D 2-1 3-2 4-3   2nd A - 3-3 4-4 2nd D - 2-1 2-1	A 2-2 3-2 4-2 D 2-2 3-2 4-2	A 2-2 3-2 4-2 D 1-2 2-2 3-3
	Linear Defense	1st A 1-1 1-1 1-1 1st D 3-2 4-2 5-3   2nd A - 4-4 4-4 2nd D - 1-1 1-1	A 1-2 2-2 3-3 D 2-2 3-2 4-2	A 1-1 2-1 3-1 D 1-1 2-1 3-1

• Meleeing force closes on a 1-4 after each round (modified by Nelson) vs Linear Attack.
  
• Meleeing force closes on a 1-3 after each round (modified by Nelson) vs Linear Defense.
  
• If having numerical superiority, add +x or subtract -x depending on ratio stronger/weaker force.
  Modifiers are 2:1 -> +1, 3-1 -> +2, etc.