I am glad you found the suggestion of Prince Henry useful. A few other points. As for RN reaction I think a persuasive argument can be made that they will increase their submarine production but by something small like 15-20% Their Admiralty will at some point before the war scratch their heads and ask, "Why is the KM building so many damn subs?" I think one point that will occur to them at some point is that Forkbeard plans to have U-Boats work in close cooperation with the HSF. This was in fact something the RN esp. Jellicoe worried about a great deal and it was something they wanted very much to be able to do themselves leading to the unfortunate K class submarines (which may arrive earlier in your TL). I do not see any panic over the sort of USW which happened OTL before Sherlock Holmes points it out.
My quibble with the Tsingtao flotilla is not its existence but its size. I would see 12-15 as more likely. Now nowhere do I see a Pola Flotilla mentioned. The existence of a sizeable Pola Flotilla at the beginning of the war could make a big difference.
Yes, he was a lot of help. It can be real hard to find someone who both supports new ideas and is high ranking enough to matter. Many ideas die for lack of a champion. Prince Henry is nearly out of central casting for my needs.
The RN may react in later years. Right now, I am trying to bring the fleet near WW1 with the following criteria:
1) Noticeably more U-boats. There is no point in writing a TL where Germany has 5 more U-boats, we know how this stories ends, almost the same. One hundred in fleet is the goal, but since Germany had near 40 to begin the war with in OTL, i might go as low as 65-70.
2) Higher production immediately before the war, to allow to greater wartime production. This will answer the question, where did the extra slips and builders come from?
3) A budget that is less than 1 BB marginally higher than OTL, and ideally never spends enough to buy a BB in any single year gross. Mainly because if the budget for new submarines gets to say 1.5 BB per year, the Kaiser will be 1 extra BB per year, and leave the rest for the submarines. It will not delay my first timeline since i have the cost of the Karp (250,000 marks per unit), but I may need to make adjustments in later years. I will still have to work through some details provided by other members.
4) A fully evolved plan to use the submarines at the start of the war. The plan will likely be deeply flawed, but I want to find sources pre-war for each of the concepts. The sources may not be the prevailing naval thought, but at least will be an existing minority view. Three out of three books i found that did pre-war submarine use have the jobs as coastal defense, then merchant raider (cruiser rules), and then gee whiz, it would be nice if the could fight in the open sea in major battles. And there are some crazy ideas, like the Russian sub with wheels (actually built or at least budgeted).
5) No huge butterflies in the various navies. A few extra submarines or destroyers by the British is ok, but I don't say want an extra 10 dreadnoughts built by the UK right before the war. This is why there is a slow build up. Reading the pre-war British doctrine, they are always fine if they have a 2-1 advantage, so likely until Germany is the number 3 submarine power, or perhaps number 4, I plan to keep the reaction of the British unchanged.
On to old forkbeard, I plan to have about the same number of U-boats in service in Germany in 1914 as OTL. In fact at times, the Germans may have fewer submarines in Europe than OTL. I have a deployment schedule that I plan to follow closely. I just need a certain amount of lead time to get the 3 extra colonial squadrons setup. There will be about twice as many U-boats, and about half will be in the colonies or with allies or otherwise not in the North Sea. There are several reason for this decision, none of which is the majority reason.
1) Makes the story more interesting.
2) The sheer distance of the ships makes the commands more independent.
3) Submarines are seen first as port defense ships (say the B-17, PBY of 1910). There are a limited number of ports that need protection in Germany proper, so the Colonies are a logical extension. Germany will be copying France's lead in this matter, as they will be in many decisions of the pre-war years.
4) Submarine is on a tight budget, so it is a lot cheaper to build docking facilities at West African wage rates than German ones.
5) Once the decision is made that colonies with army units need at least some naval defense, submarines will be sent because of their low social status. Or put another way, with more subs on hand, when the Kaiser wants ships in West Africa, old Forkbeard will send a couple of submarines as an easy solution.
Right now, new submarine classes will not arrive more than one year earlier than OTL as a rule of thumb. I am trying to keep this more a mater of better quantity of ships, not quality.
On to Pola, I see a shocking amount of lack of co-operation between the militaries of A-H and Germany. In fact at times in the previous 40 years, the foreign ministry was afraid that co-operation between A-H and Prussian GHQ could lead to the armies launching a pre-emptive war on Russia. (Don't have site, but did read this in passing.) A Med sub fleet would be useful, but do you have some idea on why this would happen pre-war?