Special Administrative Zone of Japan

The Special Administrative Zone of Japan (Gyousei Tokku Nippon) is a conceptual Britannian puppet state where Elevens are in name reverted to "citizens of Japan" and restored a number of rights and privileges denied to them as colonial subjects. It was originally to be situated in Sector F-208. The first attempt's location was at the foot of Mt Fuji. The second location was at the Shizioka Ghetto, beside the sea. Its foundation was proposed and attempted by both Sub-Viceroy Euphemia li Britannia and Viceroy Nunnally vi Britannia, but neither instance was met with success.

Background
The foundation of Special Administrative Zone of Japan was proposed by Princess Euphemia in her announcement during the Ashford Academy festival. The foundation was made after Nunnally wished to "live together with Euphemia and Lelouch like they used to be."

Social Reforms
While the right and privilege that was once stripped of Elevens after the invasion are returned to them. They are then once again able to call themselves "Japanese" and are equal to Britannians. Citizens may fly the Hinomaru flag once again alongside Britannian flag.

First Attempt
The first attempt to establish the SAZ was made by Princess Euphemia li Britannia, on her declaration at the Ashford Academy festival. Her proposal was approved and given the go ahead by Prince Schneizel el Britannia, all the while behind the back of Viceroy Cornelia li Britannia. Since its declaration, the concept was met by positive reception, especially by the Japanese. Over 200,000 people applied to join the Special Zone. Some Britannian citizens disliked the idea, afraid that they would lose their special privileges. Britannian politicians and aristocrats opinions were mixed regarding this proposal. While some see this opposing the empire's natural stance, others saw this as an opportunity to reduce rebels' popular support and bring order to the land. The Black Knights' membership was also of mixed opinion, as submitting would make them powerless, but going against it would be against the Black Knights' goals.

Lelouch vi Britannia, aware that the formation of the Special Zone would weaken the Black Knights and could prematurely end his vision of a free Japan, decided to plot against Euphemia and cancel its establishment. He accepted an invitation to attend the ceremony as Zero, all the while planning to martyr himself by making Euphemia shoot him with his Geass. Euphemia refused and successfully convinced Lelouch to support her instead. Unfortunately, Lelouch accidentally used Geass on Euphemia and ordered her to kill all Japanese, which resulted in the Special Administrative Zone Massacre. Ultimately, the Special Zone was a failure and lead to the First Black Rebellion.

Second Attempt
One year later, Nunnally vi Britannia, being the new Viceroy of Area 11 upon her own request, declared the reestablishment of the Special Administrative Zone of Japan. Unlike the first attempt, this idea was met with hostility and uncertainty from Elevens, who believed that it is another ploy to slaughter the Elevens once again. As a result, no Elevens end up registering.

Lelouch used this situation as an advantage to negotiate terms with Britannia. During a secret meeting with Suzaku Kururugi and other Britannian officials, he, as Zero, agreed to support the SAZ by sending one million Elevens to join it if Britannia agreed to exile him as a punishment for murdering Calares instead of execution. His conditions were met.

The next day, the declaration ceremony was held at Shizuoka Ghetto, with one million Elevens coming just as Zero promised, with Black Knights among the crowd. Alicia Lohmeyer makes an announcement before the ceremony starts that every Eleven who had committed crimes against the empire will have their punishment reduced, and as the terms agreed the day before, she also announces that Zero will be exiled.

Due to Zero's identiy not being public, however, Lelouch uses a loophole to disguise the one million Elevens as 'Zeroes' to force Britannia to send all of them into exile, allowing the Black Knights to leave unpunished with new recruits and remove subversives who would otherwise disturb Viceroy Nunnally's rule. Initially, the Britannian army prepares to repeat the SAZ massacre, as they can not allow one million workers to leave, but Suzaku, who preferred the more peaceful solution, orders them to stop and let the Elevens go, watching them as they go aboard an Iceberg Ship and take refuge in the Chinese Federation. Subsequently, this renders the second attempt to establish the SAZ a failure.