I should imagine that thry went by the silhoutte rather than the flag
As you say not always possible to see the flag
I guess after a while they would have been able to pick out a DD esp by the sil
Which is why you have the book
The merchants IIRC are in order of type
Cant remember what order that is now but all of each type are together
IE type101=Tanker
Type102=Cargo
Etc
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