The submarines were built in 1916 by a private shipping company created for the enterprise, the Deutsche Ozean-Reederei, a subsidiary company of the North German Lloyd shipping company (now Hapag-Lloyd) and the Deutsche Bank.[1] They were intended to travel the route from Germany to the neutral U.S., bringing back the required raw materials. As the U.S. would not profit enough from receiving German currency, the ships were to carry trade goods both ways.[2]
Britain soon protested with the U.S. against the use of submarines as merchant ships, arguing that they could not be stopped and inspected for munitions in the same manner as other vessels. The U.S., under diplomatic pressure for supposedly showing favoritism while having declared itself neutral, rejected the argument. Even submarines, as long as they were unarmed, were to be regarded as merchant vessels and accordingly would be permitted to trade.[1]
[edit]