Thanks for the help! Subsequent to posting I found the answer in the SH3 wiki manual (about the flak guns), apparently I can target surface ships only if I'm willing to man the guns myself.
I will give the destroyer edit a try as well. I find once they have sighted me they quickly home on my position and although I dive deep and go silent running they keep circling, dropping charges etc. until I think they have finally gone, come to periscope depth to find they are still in the vicinity and they home in on me once again. Maybe I'm doing something wrong?
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