I'm always very careful about targetting ships, and visually flag-verify any before firing on them. I do agree that it seems a bit deceptive and 'cheating' to have neutral ships in an 'enemy' convoy, although I think it's worse when you find enemy ships in a 'neutral' convoy.
Regardless, I've never fired upon passenger liners whatever their nationality (my personal feeling is that they're non-combatants, and unless I was to have particular intel on a specific ship --like the Germans did with the Lusitania-- I do not engage them) nor would I fire upon hospital ships.
That's just me however.
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