I think I may remember the kit you're talking about. The name Halibut doesn't ring a bell, but I do recall (from deep in the darkest recesses of my 53-year-old brain) a submarine that (I think) was made by ITC and had lots of operating features. It had an electric motor and a series of cams that (supposedly) made the thing submerge (by rotating the diving planes; there was no water pump), steer various courses (which could be changed by means of interchangeable cams), surface, and fire a Regulus missile. The latter, if I remember right, was supposed to emerge, complete with launcher, from an opening in the top of the hull. It slid along a short slot, and the sliding motion cocked a small coil spring, which (supposedly) then fired the missile. How you were supposed to recover the missile I don't remember.
I seem to recall some detailed instructions about adding just the right amount of ballast (maybe in the form of water) so the thing would have just the right amount of buoyancy for the diving planes to take effect - in different amounts for fresh and salt water. I had to get my father to explain that to me.
It was part of a series of highly-animated kits that were marketed under the logo "Camamatic Action." I'm having trouble recalling the others in the series; I think there was a U.S.S. Enterprise (ultra-high-tech at the time), which presumably fired miniature aircraft, and a tank. I got my sub for Christmas when I was in elementary school, and, of course, never got it to work. In retrospect, I wonder if anybody ever did.
I'm trolling deep in the recesses of the rotting brain cells here; all the above may be fiction. Maybe another forum member can help more.
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