There was another topic in the 50th section where someone asked why Rommel was on the box and not Hitler. This person pointed out that you saw faces like Churchill and Stalin (world leaders) not Montgomery or Eisenhower (country specific generals) for example.
The answer was that the game would not be legal to market in Germany with Hitler’s face. I would imagine this would fall under the same school of thought. Germany doesn’t deny that the war happened but they would like marginalize the bad PR that goes with it.
I like to put my IC in Kwang because if the nasty little americans get long range air craft, they can reach any ships you build out of japan from AK. If its on Kwang then newly built ships can be out of range. Also its farther away from russia, but not that far from moscow. Plus I like it because if its on Manchiria, its on the front lines. When in Kwang if the russians americans or british make an offencive it can still hold out.