Movies Unlimited is a North American release. It doesn't actually mention any region coding on the case so in might be "region 0" or have nor region coding so that it can play anywhere. My DVD player plays everything from everywhere without my having to enter any codes or anything like that. That's very useful but it means that I can't tell if there is any region coding on a DVD
(2) I'm fairly sure it's trying to show that the German newspaper is being censored in Germany in 1917. When one of the the two German navy officer in the hotel reads the newspaper to the other he reads out the start of the article and then stops where it is censored.
But if you wind back a few scenes, we see the newspaper "boy" bringing the newspapers into the hotel, and it doesn't look like they're censored there
Of course nobody finds it unusual that a German newspaper, the "Kieler Post", should have its banner headline and the main article, in English
Maybe that's why it was censored?