Limited by the 1919 Treaty of Versailles to a maximum displacement of 10,039 tons, Germany produced the cleverly designed "pocket" battleship . Great savings were achieved by using electric welding and light alloys in the hull. Admiral Graf Spree, with her two sister ships , Deutschland and Admiral Scheer, were intended primarily as Commerce Raiders . The ship was scuttled off Montevideo, Uruguay after engaging three British cruisers, Exeter, Ajax and Achilles, in the battle of River Plate in December 1939 . The ship was officially classified as being an armored ship by the Germans tell it was popularly referred to as being a pocket battleship, a title which stuck. In actual fact neither term is strictly correct for she was in reality an armored cruiser of an exceptionally powerful type.