January-April
On the Morning of January 22nd, a fleet of 58 Spanish P-35s, carrying the new La-Massura rocket, dove down on one of the Mexican ships in the Mexico Canal Harbor, the MS Colima.

(Two of the 58 P-35s, notice the large La-Massura Rocket under the belly)
The pilots braced themselves for the deadly Mexican Flak from shore batteries, and Mexican warships in the harbor, one of the Spanish pilots, said after he was shot down and captured by the destroyer Benito Juarez, "Era como si fuéramos aves de rapiña, buceando sobre un pez.", or in English, "It was we were birds of prey, diving on a fish."

(MS Colima firing on Spanish P-35s)
The P-35s fired their rockets, but most of them missed, out of the 58 launched, only 15 hot their targets. After the barrage of La-Massura rockets, a gunnery officer named Alberto Lindez remarked "No es de extrañar que Polonia rara vez venda sus barcos, ¡estas cosas golpean mejor que un tablero de dardos en un juego de dardos!", or in English, "No wonder Poland rarely sells its ships, these things hit better than a dartboard in a game of darts!"

(A P-35 flies away after it's rocket misses)
A couple months later, March, one Spanish battleship called the Éspania, four light cruisers of the Florida Class, and seven destroyers of the Santa Fe Class, encountered the MS Colima, which was making it's way north for repairs. The following fire-fight that insued resulted in the loss of all 12 Spanish ships, but in return, the Colima suffered heavy damage and went straight north, with an escort of two Clemson Class destroyers.

(MS Colima sinks a Santa Fe class destroyer)
Two days later, a group of TBD-1s were flying through the canyons of the nearby mountain range on a patrol, with one of the pilots mentioning, "Volar a través del cañón se sentía como volar entre dos montañas, y fue emocionante." or in English, "Flying through the canyon felt like flying between two mountains, and it was exciting."

(A Mexican TBD flying through the canyon)
All of a sudden, they spot a Spanish destroyer, they went in for a torpedo run. No planes were lost, but no hits were scored, it was only an hour later that the destroyer was sunk by Mexican bombers.

(One of the TBDs after their torpedo misses)
The rest of the battle, was fought in the air and the ground, Mexican P-36s shot down multiple P-35s with very few losses, and on the ground, the Spanish have it even worse, the Mexicans were prepared, MX-8s took down many T-26Es in quick succession, with only eight losses at the end of the battle. The battle ended on April 28, 1940. The battle ended in the most crushing Spanish defeat in the entire war up to this point.

(A MX-8 destroys a T-26E)