Special Administrative Zone of Japan

The Special Administrative Zone of Japan (Gyousei Tokku Nippon) was a conceptual Britannian puppet state where Elevens were 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
The rights and privilege that were once stripped of the Japanese after they became Elevens following Britannia's invasion were to be returned to them. They would once again able to call themselves "Japanese" and be considered equal to Britannians. Citizens would also be able fly the Hinomaru flag 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. Follwosing its declaration, the concept was met by broadly positive reception, especially among the Japanese. Over 200,000 people applied to join the Special Zone. Some Britannian citizens objected the idea, afraid that they would subsequently lose their special privileges over the Elevens. Britannian politicians and aristocrats opinions were mixed regarding this proposal; while some saw the SAZ as opposing the empire's Social-Darwinist philosophy, others saw it as an opportunity to reduce popular support among Area 11's rebel groups 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, revealing that she planned to forfeit her claim to the Britannian throne in order to establish the SAZ. Unfortunately, Lelouch accidentally used his Geass on Euphemia and ordered her to kill all the Japanese, which resulted in the Special Administrative Zone Massacre. Ultimately, the Special Zone was met with failure, resulted in Euphemia's death, and lead to the First Black Rebellion.

Second Attempt
One year later, Nunnally vi Britannia, having become 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 them once again. As a result, no Elevens registered to participate.

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 announced before the ceremony starts that every Eleven who had committed crimes against the empire would have their punishment reduced, and as per the terms agreed the day before, she also announced that Zero's exile.

However, due to Zero's identiy not being public, Lelouch used 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 prepared to repeat the SAZ massacre, as they refused allow one million workers to leave, but Suzaku, who preferred the more peaceful solution, overuled them and ordered that the Elevens be free to go, watching them as they go aboard an Iceberg Ship and take refuge in the Chinese Federation. Subsequently, the second attempt to establish the SAZ also ended in failure.

Trivia

 * The Special Administrative Zone may be based on the Special Administrative Regions (SAR) of the People's Republic of China. These areas (Hong Kong and Macau) possess high degrees of autonomy from the central Chinese government.