My chart shows that you've got to be approx 45 meters above sea level to be able to see a horizon at 25 kms..and considering most destroyers had a short draft of only 2-4 meters, it seems unlikely to me that the remaining 40 odd meters would be above water....I'm sure the bridge height of ww2 destroyers was no where near 45 meters....
So i'll stick with my first guess that that dotted circle around single destroyers represents radar coverage......especially when it's out as far as you mentioned.
And yeh...your'e right....now i think about it i've never noticed that dotted circle around convoy contacts or even when i come across 2 merchants sailing in a line....Just single contacts..
Edit:...No, wait a minute....yeh...you do see dotted lines around convoy contacts .. but only the escorts....you'll see an outer ring and depending on escort type also inner rings representing i should imagine asdic coverage.....You'll also usually see an area marked with dotted lines aft of the boat representing the asdic "blind zone"..
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