I've never seen another submarine, but I would think that the game might simulate them, I believe it simulates a whole ship's route, rather than just having random encounters plotted. I think this is the case because sometimes I reload a save file for whatever reason, and if I keep the same course I did the first time I played, I'll bump into the same ships.
Seems reasonable to me, and after all the contact reports have to come from somewhere haven't they? (Although a few probably are planes)
Still I am very curious if this is actually the case.
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