On the topic of merchants firing upon you I made an interesting observation last night.
I was attacking a large merchant and fired two torpedoes at it while at periscope depth. Both struck but wasent enough evidently they can immediatly stop flooding and ignore fire... but thats another topic.
I dedided to surface and finish her with the deck gun. We popped up and actually had enough morale for the wo to order the deck gun manned, I then 'mark' the target and they begin firing away.
There was no return fire so I started sailing closer. I noted we were outside of the magic grey circle. We continued closing the distance when suddenly their guns open up. Uhhhhh all back full center rudder... A quick check of the map we were now within the magical grey circle.
The conditions were low visibility, night time with fog. The ships magic grey circle was quite small indeed maybe 1,000 yards. As we backed away at some point their fire just stopped.
So I'm assuming that the issue is that you can see and fire from a much greater range than that of the merchants. If you close that range they will fire upon you.
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