Quote from a grammer book

My supervisor and I get into this argument about where to place punctuation in a term with quotes all the time and he won the argument. Under the American convention, periods and commas are placed within the quotation mark. There is an exception for technical terms where it is important to distinguish the references. Under the British convention they are outside the quotation marks if they are not a part of the quote. Anyway, my admin assistant brought me a book that the word processing staff uses as a reference and in cites a portion of a transcript of an actual radio conversation released by the U.S. Chief of Naval Operations as an example of quoting dialogues and conversations. I read this somewhere else before and it was hilarious then and its hilarious now. Here it is:

STATION 1: Please divert your course 15 degrees to the north to avoid a collision.
STATION 2: Recommend you divert YOUR course 15 degrees to the south to avoid a collision.
STATION 1: This is the captain of a U.S. Navy ship. I say again, divert YOUR course.
STATION 2: No, I say again, you divert YOUR course.
STATION 1: THIS IS THE AIRCRAFT CARRIER ENTERPRISE. WE ARE A LARGE WARSHIP OF THE U.S. NAVY DIVERT YOUR COURSE NOW!
STATION 2: This is the Puget Sound lighthouse. It's your call.

(from The Gregg Reference Manual, 9th Ed. by WIlliam A. Sabin. page 73.)