The problem with the negative reknown is that SH3 devs did a really poor job in implementing the nuetral ships in game.
Nuetral ships should be sailing with lights on otherwise according to Hitlers Directive #5 of Sept. 30,1939 which states the following...
"Trade War will in general be waged in accordance with Prize Law with the following exceptions:
Merchant ships and troopships definitely established as being hostile may be attacked without warning.
This also applies to ships sailing without lights in waters round England.
Merchantmen which use their radio transmitters after being stopped will be fired upon.
Attacks on passenger ships, or large ships which obviously carry considerable numbers of passengers in addition to cargo, are still forbidden."
So basically any ship sailing without its lights on be it nuetral or otherwise around Britain is open to be attacked without warning.Removing the negative reknown allows for this to be done as you do have nuetrals around England in the game.
But you also run into a problem with the game not modeling the passenger ships properly either.Because according to the above Directive..passenger ships were off limits to attack even if carrying military cargos if there were large numbers of passengers aboard.
So attacking US ships should be off limits as well as attacking passanger ships...but any other merchant be it hostile or nuetral falls into the above directive #5.
It all really depends on how a person looks at things and personal preferences on historical accuracy when playing or what ever they may prefer to do.
I personally play with negative reknown for nuetrals turned off so I can attack according to the above directives but I also dont get any reknown for sinking them.I only get the tonnage amount but no reknown.But I leave US merchants and all passenger liners alone.
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