Thank you both for your answers.
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In addition, it is believed by some that play this game that the bright white lights are switched to red to indicate the time of sunset. This is partially true.
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I'd watched a show about a modern US sub a long time ago (have since forgotten it) where the above explanation for the red lights was given: a sort of psychological effect for the crew so they do not feel they are living in perpetual daylight. The aspect of red light not traveling as far/being harder to spot also makes sense to me.
MQ