@The_Good_Captain The rule applies in all sea battles where there are sea units allied to the attacker present, regardless of the type(s) of defending German sea units. The rule mentions only German subs because the author failed to take into account the possibility that the situation could also exist with German surface units if they were mobilized in a hostile sea zone. This oversight was corrected in the Axis & Allies Pacific Rulebook.
IPCs
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Do you increase you Production Chart EVEN if you didn’t fight for a country? Expample: If Germany takes over Trans-Jorden, no one is there, does germany still increase by 2?
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It does … though Trans-Jordan (being part of the middle east) is marked not on the main part, but on the extra part of the IPC chart.