Then please, find me an example of a U-boat using this information to sink a lone merchant. It should be easy.
I don't think you'll find many.
The single ship contact information in SHIII is a game invention by the designers to increase the action for the player, and to avoid long fruitless patrols.
You're twisting historical reality to conform to SHIII.
U-boats were not able to use radio intercepts to reliably locate and sink merchant vessels. Far and away most of the single ship contacts were chance encounters detected by the eyeball of the watchmen.
P.S. What pages are you referring to in Clay Blair? I'll re-read it.
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