The knowledge of drop zones didn't have impact on naval battles on the tactical level. The info on convoys made the interception more certain but the radar equipped RN task forces had patrolled north of Crete already during the previous night. And the battle shows the effects of the warships versus a lightly protected convoy if the warships made contact with the convoy. IIRC correctly Kriegsmarine ciphers were still fairy secure at that time. The ships transported Heer's troops (Mountain troops of the 5th Mountain Div). I cannot remember how much inroads into Heer ciphers British had made at that time. The weak point of German signal security were the LW ciphers and the LW many times babble out also KM's and Heer's secrets in its messages. The other possibility was Italian ciphers as the escort ship was an Italian Spica-class torpedo boat (Lupo) and IIRC Brits read the Italian naval codes at least periodically during the war. So yes, on 21 May, as the result of Sigint info, an a/c from Egypt (a Maryland of No. 39 Sqn) sighted convoys of caiques escorted by warships allowing the RN to attack the first convoy around midnight 21/22 May. The second convoy skirmish happened during the morning of 22 May while the RN ships were under heavy and effective air attacks.
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