Hi!
I have often noticed that neutral ships are found in convoys, even without the GW mod. For example, I found myself in a nearly identical situation in 1939 (nailed the sole escort and began torpedoing merchant ships) but I was close enough (that is, REALLY close) to identify several of the ships as Danish merchantmen before firing. Vichy France is neutral during 1941 so I'm not surprised it was seen an allied convoy.
Historically, neutral ships could only expect to be ignored if they acted as neutrals (i.e., well-lit, well-marked, and not a member of a belligerent-escorted convoy). It was really the merchant captain's choice: take your chances that a u-boat skipper would not torpedo you without verifying your nationality, or go in a convoy where you could at least have some protection.
I think it's just an operational hazard of SH3 that the game engine puts neutral merchant ships into convoys - I know of no way of keeping them out - so the player is forced to either verify identity before shooting or blast away and risk sinking a neutral ship.
Pablo
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