Actually it was Donitz who insisted for continued operations. The rationale being that the allies had to keep planes on ASW duty instead of releasing them for use against Germany, the inefficient convoy system had to remain in place and a large amount of resources in general had to be expended to mantain the global ASW effort. I do not recall any confirmed wartime defections, though going by accounts the boats which made it to Argentina were not the only ones whose crews made the attempt or seriously considered it as an option.
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