Britain faced a diplomatic problem in deciding how to divide or destroy surrendered German warships. The earlier German fleet scuttling after the First World War had removed a similar source of argument. British and American preference for destroying U-boats met less Soviet resistance than feared. Most surrendered boats were Type VIIs, and the Allied navies considered their own submarines equivalent or better. With relatively few Type XXIs available, much of the captured inventory held little attraction as an addition to an Allied fleet.
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Why the Allies agreed to destroy most surrendered U-boats
Emerging distrust of the Soviet Union complicated disposal negotiations, but the limited appeal of Type VII boats helped the Allies agree on destruction.