I set the neutral renown value to 1/2 of standard and try to behave realistically. If a neutral's on the open sea I will leave it alone, but if it's near a British port or in convoy I will attack. Neutrals from pretty much every maritime country were sunk during the war, and commanders rarely seem to have gotten into trouble for it. I can only recall one commander getting into trouble with Hitler or Doenitz (an attack on the battleship "USS Texas", which missed).
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