In reality SH-3 is very strict in this point, many neutrals were attacked by U-Boots and some of this nations pay a very high price. Sweden considered as neutral, loss alone 88 merchants by U-Boots; also true is many Swedish ships were sailing with British convoys, but other not.The two first victims of Luth with U-9 were two Swedish ships.Also, the position of the Swedish neutrality was quite complexe as see from the Axe side(remember the "Gotland" sight reports of "Bismarck").In some situations the sink of neutral ships by U-Boots had taked disastrous consequences for Germany: incautation of all interned German merchants in the ports of the neutral victim country, incautation of all German capitals,interes in the country and sometimes, a undesired declaration of war, like Brazil in August 1942, a wonderfull oportunity for the Allied to deploy in this hugue land, several bases and improved a lot the control and coverture ASW in the South Atlantic.
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