Yes, but it simply doesn't make much sense, the PB can find and kill any convoy that the combined force can by itself why bother wasting time for Uboats when they are very limited in number and needed elsewhere that surface raiders cant go?Yes, but the British didn't know that there were little to no U-boats in the Atlantic, the same way the Allies had no idea that the Graf Spee was in the Atlantic. Two DD's are more than enough to scare off a single U-boat, which is what they were expecting since HMS Courageous had been sunk by a U-boat back in September. And the two DD's would've turned around once they meet up with the heavy cruisers, but they never got there.
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ITTL, the USA is in a much better place to be exporting war materials to the allies. The two U-boats were sent to beef up the Graf Spee since the Germans were expecting many more enemy freighters to be crossing the ocean. The Graf Spee deliberately slows down to let the U-boats keep up, but for the ambush, the U-boats snuck up first and the Graf Spee followed.
The U-37 bit was a bit of rule of cool. The Saguenay was already starting to sink when U-37 surfaced and any hits scored by the 105mm shells wouldn't have mattered in the bigger picture as the destroyer was already dead. Another salvo from the Graf Spee would've sunk the St. Laurent anyway. That wouldn't have bought the merchant ships anyway. But going through the process of picking up and turning the sailors in POWs arguably brought more time for the ships then fighting to death would've.
The DDs historically would only be attached at each end where the highest risk of being found by Uboats, especially near UK coast...... The convoy is moving at 9-13 knots if HX1, a Uboat cant do more than 18Kn and would mostly have to be even slower due to fuel requirements ie 10kn economic cruise, catching a convoy is impossible without luck or other supporting (air/radio search) forces. out in the ocean.
Even a sinking DD is very dangerous for any Uboat a single 4.7" shell will kill it so it would never surface to attack one especially with convoy and other DDs nearby that could fire at it....
I dont think the battle makes sense and underestimated how hard it would be to deal with two DDs making smoke and hiding, the Uboats would add very little as they are kept down and can only move at trivial speed 4-7Kn with DDs and PBB doing 25-30+Kn... I would read about what convoy escorts did when trying to cover convoys scattering from surface raiders IRL and most of them where not two real DDs, ie corvettes & AMCs trying to stand and fight.
What's the original plan regarding the convoy, are we are talking HX 1 as from Canada with two DDs and meeting up with two CA/CLs for the crossing, but that would place it very far west in the Atlantic?