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Originally Posted by panthercules
These are probably sightings based upon radio intercepts (your radio operator can sometimes detect transmissions from ships - merchant ships and even warships sometimes were often sloppy in radio discipline or just had to communicate with HQ for some reason or another), or sometimes they are radioed to you by other u-boats or by BdU - while you occasionally do get sighting reports that show up in your radio message log, these are usually reserved for major convoy or task force sighting reports - to keep from clogging up your radio message log these routine single ship sighting reports don't show up there but simply show up as icons on your nav map.
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Yes,
Beobachtungs-Dienst (B-Dienst) was the German radio interception branch that dealt with tracking convoys and sailings at sea. The information attained by B-Dienst would be passed on the Uboats regularly.