In the vicinity of Saint-Quentin on 2 October, No. 2 Squadron became the first AFC unit in Europe to see aerial combat when one of its patrols engaged some German two-seaters, which managed to escape. Because the Airco DH.5s in the squadron were handicapped as fighters by engine problems and low speed, the squadron was employed mainly in ground support duties. During the Battle of Cambrai that commenced on 20 November 1917, Watt led his pilots on daring low-level bombing and strafing attacks against enemy fortifications and lines of communication. Their loss rate reached 30%, but morale remained high. After visiting the squadron, the Royal Flying Corps' Major General Hugh Trenchard described its airmen as "really magnificent" while Charles Bean, war correspondent and future editor of the "Official History of Australia in the War of 1914–1918", commented on their "remarkably high level of conduct and general tone". Six of Watt's officers were awarded the Military Cross for gallantry during the battle, prompting General Sir William Birdwood to send him a personal message of congratulation on 16 December, declaring: "... This is indeed a magnificent record for your squadron, and one of which I am sure everyone of you must rightly be extremely proud; I doubt if it has been beaten anywhere ..." By this time, No. 2 Squadron had begun converting to Royal Aircraft Factory S.E.5s, though it could achieve little in the winter months due to inclement weather. Watt himself, now almost forty, was beginning to show the strain of frontline command. Bean found him looking "very worn" and noticed him shivering even while seated in front of the mess hall fire.