Have you tried simply lowering the visibility value. the ZERO caused it to to be unsinkalble, no ship could "lock" fire on it. Maybe just experiment with values. ONE might work. This should make it sinkable but much harder then submarine to spot.
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The problem is also that all ships will fight an auxilliary that is in code terms a nuclear subs with their sub attack values ....
So thats ok. Hard to spot - start the actual combat. But when it's spotted everyone should shoot be able to shoot at it just like on a regular transport ship.