The flag identification becomes harder if you are far then 1500 meters to the target. Its harder in late war since you won't get that close to a convoy. However if they are sailing with the a convoy, then its definitely a target for you.
For single merchants, if they are in enemy control waters, the odds are high that it is safe to sink them.
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"Though I'm past 240 meters, I'm feeling very still and I think my u-boot knows which way to go ..."
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