Steamed Tac,
The submarine service MAY have used a few LP-08, but by far the bulk of the U-boats crews were armed with Marine Pistol '04. Likewise the torpedo boats and naval zeppelins. i am fortunate to have both a U-boat marked Navy 1906 (posted in the member gallery) and a Naval Zepplein marked rig.
The key to the issuance of the LP-08 was replacement for the Gew, as you so clearly state, but two other instances were LP-08s were specifically issued were for protection of crew-served weapons (artillery pieces and machine guns) and for Stoss Truppen, where the LP with the trommel mag was a precursor to the submachine gun.
Cheers,
Tom A.
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