The Supreme Court upheld the policy of interning Japanese American citizens during World War II.
After the Japanese attack on Pearl Harbor, the US officially declared war on Japan. Shortly after this, the federal government was suspicious of Japanese American citizens and feared that many of them were spies for Japan. This is why president Franklin D. Roosevelt passed executive order 9066. This law resulted in the placing of Japanese American citizens into internment camps.
Korematsu was one of those citizens placed into an internment camp. He lated sued the federal government saying that this was a violation of his constitutional rights. However, the Supreme Court sided with the government as they felt that wartime actions can justify actions like the one taken by president Franklin D. Roosevelt.
Even if the United States had wanted to enter the war, its military force was simply not ready.
Well it seems like they can live on land or water, I think the tectonic plates had alot to do with it also.
Japan was awarded w/ German territories + they got influence in China with the Treaty of Versailles