Sorry, but I can't see a goverment letting its merchant ships be better armed
than its military vessels, even if it is a *very* loosely run government.
Granted, back in the days of olden piratery, merchant ships *were* heavily
armed, but their weaponry wasn't really advanced over the warships of the time.
Also, this seems to run contrary to most of the 'classic' science fiction:
GM: the super star destroyer is closing on your ore frighter,
demanding that you deccelerate and prepare for boarding
Player: I turn my ship around and fire my anti-matter spinal mount
ray.
GM: the warship is destroyed; you may proceed
Sounds wrong? Thats what'll happen if merchants are armed better than warships.
The only way I can see most merchant craft being well-armed is if there is
such rampant piracy that the Navy can't handle it. You could, perhaps, get
the government to grant you papers to carry weapons, armor, and sensors
as good as the military, but then your ship would be classed as an auxillary
naval vessel, and could be pressed into service whenever the Navy needed it...
Hmm, not that different from the Scout ship recieved as a mustering-out
benefit...