Here's another one for you, dating back even further. It is from the book Submarines(1982) by Antony Preston(sic). The excerpt is from the WW1 part of the book, where the author mentions a ghost story involving either the U-65 or UB-65. I wasn't able to find a good source for this on the internet, so here goes how it's in the book. Note that according to the most recent knowledge UB-65 wasn't lost at this incident.
Quote:
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Originally Posted by Submarines
UB.65 sailed from the Heligoland Bight on 2 July 1918(still under the command of [Kapitänleutnant] Scheele) avoiding a torpedo from British boat G.6 on the way, but her periscope was sighted off the Fastnet rock by the American submarine AL.2 at a distance of only 80 yards. Lieutenant Foster was maneuvering to attack when he heard an explosion ahead of the U-Boat, followed by the noise of fast-running propellers and then silence. The assumption by modern authorities is that UB.65 had fired a torpedo(whether at AL.2 or another target is open to question) which exploded prematurely as it left the tube. As both submarines were submerged during the encounter it is highly unlikely that Foster saw a ghostly figure and his report makes no mention of it.
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Just out of curiosity, did the person you're arguing with state why an engagement between two subs would be impossible?