@joephillips There is no provision in the rules of the game for “annexing” territories. If you want to create house rules for this, it’s up to you what happens; however, when it comes to a hostile power, “annex” is just a diplomatic word for “attack”.
Broken link on avalon hills website
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I tried to enter the FAQ on AHs website. But it seems to be broken
https://avalonhill.wizards.com/avalon-hill-axis-allies-pacific-1940-info#submenu-page -
@SGT-Pitbull Not the only link that is irritating there, unfortunately.
The FAQ document is here: http://media.wizards.com/2015/downloads/ah/AA_Pacific_1940_2nd_Edition_FAQ.pdf