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The German ENIGMA coding machine was used to communicate orders from Germany to its deployed U-boats. Early in WWII, the failure to break the ENIGMA code helped lead to significant losses in the Battle of the Atlantic. The Germans believed that the ENIGMA code was unbreakable.

The first break for the Allies came when the British destroyer HMS Bulldog successfully boarded and captured an ENIGMA machine and its code books from the German U-boat U-110 in May, 1941. The capture of the ENIGMA machine significantly aided efforts by cryptoanalysts at Bletchley Park in England, where the main British code decryption efforts were being conducted. Eventually Bletchley Park was able to successfully build a computer that would decode all German Naval communications. This feat, as well as the Allies' success at keeping the knowledge from the Germans that ENIGMA had been captured and broken, led to the major downturn for German U-boats in the Atlantic. By the end of the war, German U-boat losses were 70%.

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