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Originally Posted by Sailor Steve
They don't seem to have had a clue that it was happening. Doenitz insisted on constant reporting, and never seemed to put the two together.
They also got attacked by radar equipped planes, and caught on late because the vaunted German engineers didn't manage to invent one that operated at the centimetric level for another couple of years, and if they couldn't do it then nobody could.
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I am currently reading Doenitz's memoirs and he wrote that he did not think that Direction Finding would be that great of a risk. He was mistaken.
"Antisubmarine Warfare" By Owen (2007) has a good history of how Germany considered Radar's capability and scalability. They were mistaken.