Special Administrative Zone Massacre

Massacre
Princess Euphemia for the whole day makes a public announcement. She will be setting up the Special Administrative Zone of Japan (SAZ) where Elevens/Japanese will be given their titles, names, and rights back, and be called Japanese again. This angers many members of the Britannian Imperial Family, and even many Elevens are not convinced of this proposition. However, Euphemia eventually convinces everyone that she is serious and that she truly believes a new age is about to begin. Schneizel also sees it as a good choice for Euphemia, as it makes things easier. Suddenly, Euphemia (accidentally geass-ed by Zero) runs to the podium and asks the Japanese people to kill themselves. When she realizes that they won't do it, she decides to shoot them herself and issues an order to all Britannian forces to slaughter every last Japanese in the area. Andreas Darlton tries to confront her but ends up getting shot as well.

Suzaku, who was unconscious due to coming in contact with C.C., tries to stop the soldiers but because he's also Japanese, they try to kill him as well. Feeling disturbed by the entire incident, Lelouch tries to leave and manages to pass Darlton unscatched because the man is wounded. Inside Gawain, C.C. is surprised about the incident but Lelouch tells her that this is not his doing. Upon seeing Lelouch's active Geass eye, C.C. then understands what happened. Zero now realizes that the only thing they can do is to make the most out of the incident. After destroying Britannian planes, he issues orders to the Black Knights stating that Euphemia has become their enemy and the Special Administrative Zone of Japan was just a trap. He orders the group to destroy the Britannian army and save the Japanese. Lelouch then cries and gives his final order: Find and kill Princess Euphemia.

All the Japanese--including Kallen--are outraged and agree to beat Euphemia to death. Guren Nishiki and Tohdoh's Zangetsu frame prove more than a match for all the Britannian knightmares present. While trying to stop a frame from shooting at civilian, Kallen realizes that the pilot is none other than Euphemia. Kallen charges, but Zero already arrives on the scene with Gawain. He dismantles Euphemia's frame using Slash Harken and Euphemia ejects. Despite this, she picks up an automatic rifle to shoot at Gawain and Guren Nishiki. Eventually she runs out of ammunition, so Zero comes out of Gawain and proceeds to approach Euphemia. Suzaku is frantically looking for Euphemia and finally finds her, directly in front of Zero. Euphemia says to Lelouch to set up the Special Administration Zone of Japan with her, thought she is puzzled at the word "Japan". However, Zero says this is impossible now and instead shoots her near her heart, mortally wounding her. Suzaku is driven completely berserk and charges at Gawain however Gawain escapes and Suzaku rescues Euphemia and brings her to the Avalon. Unfortunately it is too late, for by the time he gets to the Avalon, Euphemia's wound is so grave that she dies while being treated.

Aftermath
Zero and the Black Knights now decide its the last straw and decide to contact all Pocket Rebel Groups, Guerrillas, and Citizens to start a complete and total Assault on Tokyo Settlement, The Seat of Britannian power over all of Area 11. Also, Chinese Federation countries including Taiwan, Korea, China, Thailand, and Vietnam declare war on Britannia. Later, Nunnally vi Britannia tried to reestablish the Special Administrative Zone but failed because of the lack of trust as a result of the previous failure conducted by Euphemia li Britannia. This worked as an advantage for Zero, because he formed a plan of exiling himself out of Japan in return of the reestablishment of the SAZ His true plan was to exile the Japanese people along with him that had attended by disguising them all as Zero. Schneizel had also informed the Black Knights that Zero had used his Geass to make Euphemia carry out the massacre (which was technically true, except that Zero had done so by accident). This ultimately played a major part in the decision of the Black Knights to betray Zero.