Hmm… I feel that Submerging and Retreating are not one and the same because the (defending) submerged Submarines are still in the sea zone; they haven’t moved anywhere - not to mention that the defender can never retreat. So I don’t think we can treat Submerging the same as Retreating.
In the case of attacking Submarines, they have the option of Submerging instead of firing immediately during the first combat round, and they can also Retreat instead of Submerging from round two onwards. However, if any of the attacking Subs choose to Retreat then they must all move back to the same friendly sea zone from which at least one of those units came (along with any other retreating surface warships).
Therefore I believe that in either case (attacking or defending), each Sub would make its own choice as to whether it would Submerge or not. Say you were attacking with 3 Submarines, your options would be:
A: Submerge either 1, 2 or 3 of them before the Opening Fire step of the 1st combat round.
B: Retreat ALL 3 Submarines simultaneously before the 2nd combat round begins, OR Submerge either 1, 2 or 3 before the Opening Fire step of the 2nd combat round.
C: Repeat option B… etc.
That’s what I think, but perhaps Krieghund could clarify?