I've often seen the CSS Hunley referred to as a Confederate or "Rebel" submarine. That doesn't seem to offend anyone. Not even the PC crowd which usually whines at the sight of a Confederate flag.
The sunken British pre-dreadnought HMS Camperdown is often referred to as a Victorian battleship. The sunken Mary Rose is remembered as a Tudor warship as much as an English one. I don't see many anti-royalist noses out of joint.
The sunken Russian submarine K-219 is still referred to as a Soviet submarine or a "Soviet-era" submarine. Maybe that's the answer. Call the U-168 an sunken Nazi-era sub and maybe that settles the matter. 12 years is a short era though.
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