The correct answer to this open question is the following.
What I can infer about the behavior of the Japanese from the Nazis at the end of World War II is that the Japanese showed more honor and defended its country until the very end. On the other hand, after Hitler committed s*icide on April 30, 1945, the German troops -who were reliant on him- surrendered and Franz Bohme surrendered German troops on May 7, 1945. The Japanese continued to fight hard until the United States dropped the atomic bomb over Hiroshima and Nagasaki, in August 1945. That represented the end of World War II.
The king is basically giving them a license to start a colony. It's like how you can't drive a car unless you have a drivers license, but with colonies.