This is a legal move, and has been as long as I can remember. Its on page 18 liberating a territory, second paragraph.
If the original controller’s ….
Edit: I see Krieghund types faster then I do
Dragoon, I could see how you could interpret the way you did from the pages you quoted, especially when they use words like “never” on page # 20.
Any way, this is a very interesting strat. I was thinking Malaya might be a good target as well. Its 3 spaces from Queensland NB, and Japan might not see it coming. I guess it depends on what direction the US is coming from, and where the Jap navy is. At some point the US may want to liberate India, like if in the process you liberate the E Indies (UK NO extra $5). US could leave the new IC to the UK, and maybe build another (minor) on FIC if it takes it. FIC could also be an orig target if Jap built an IC (minor) there in its conquest of Asia.