And Yes, I realize I should have built a coastal fortress there.
Now, for naval strategy.
Here were a couple facts I was operating under.
1. His navy is superior to mine.
2. His ground troops are equal or superior to mine.
3. Knowledge is half the battle.
4. He is coming to me.
The goal was for my navy was to basically kamikaze the British, and destroy as many transports as I could. I later altered this to sink as many submarines with Sea Wolf missiles, as I relized these would even be more effective than my own exocets. The main secret was that I had to find him, and fire what I had, before he found me and destroyed my fleet.
For main naval weapons, I used the exocet. Lovely missile, good range, and does lots of damage. Unfortunatley, I only had a limited amount, and I couldn't build more.

That was changed.
I also used Canberras, mostly Veterans, to attack the protected English targets, in combination with exocets and fighters. Canberra's were also excellent patrol craft with their long range.
Note that while I sank a great many ships, if this had only been a naval battle, he would have won. He sunk most of my fleet, and still controlled the seas.
Finally, the English's biggest mistake was not sinking my carrier after they let me know they have found it. Here is a clip of my carrier preparing to due vengeance on the English, and it's load layout. Most of these exocets actually went to destroy the Sheffield, which my planes haven't located yet, as this is a save before I started playing.