Naval Warfare
This practice is considered acceptable in naval warfare, provided the false flag is lowered and the national flag raised before engaging in battle. Auxiliary cruisers operated in such a fashion in both World Wars, as did Q-ships, while merchant vessels were encouraged to use false flags for protection. The 1914 Battle of Trindade was between the auxiliary cruisers RMS Carmania and SMS Cap Trafalgar, which had previously disguised themselves as each other.
One of the most notable examples was in World War II when the German commerce raider Kormoran, disguised as a Dutch merchant ship, surprised and sank the Australian light cruiser HMAS Sydney in 1941, causing the greatest recorded loss of life on an Australian warship. The Kormoran was also fatally crippled in that encounter and its crew was captured, but it was a considerable psychological victory for the Germans.
The British used a Kriegsmarine ensign in the St Nazaire Raid and captured a German code book. The old destroyer Campbeltown, which the British planned to sacrifice in the operation, was provided with cosmetic modifications, cutting the ship's funnels and chamfering the edges to resemble a German Möwe-class destroyer. The British were able to get within two miles (3 km) of the harbour before the defences responded, where the explosive-rigged Campbeltown and commandos successfully disabled or destroyed the key dock structures of the port.
Read more about this topic: False Flag Operations
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