IC damage when captured

FIC, if under united UK economy, can be useful for UK. I agree with you that it serves better for Japan but once again, it depends on what Japan attacks first.

Three (3).  It won’t be a major complex until after place new units.

It’s on page 20 of the Europe 2e manual, last paragraph:

Any industrial complex, air base, and/or naval base located in the captured territory is now controlled by your side (see “Liberating a Territory,” on the next page). If you capture an industrial complex, you can’t mobilize new units there until your next turn. **_If you capture a major industrial complex, it is immediately downgraded to a minor one.

This is the only mention I’ve found in the the rules, even though they discuss the damage markers in multiple places.  It would have been helpful to reprint that in the unit profiles section._**

yes.

Minor ICs can be built on any territory you control worth 2 IPCs or more.

I would agree - capture of London on G1 is a physical impossibility.  British and French cruisers in SZ112 block the Kriegsmarine from reaching the UK and the paratrooper rule requires additional ground attack.

@Black:

Does Germany has to pay the 17ipc to upgrade the IC again? or does that happens automatically?

Germany must pay.  The cost is 20 IPCs.

@Black:

btw: Paris becomes a Minor IC as soon is taken by Germany, right?

Yes.

Your understanding is correct, MarkVIIIMarc.  However, in scenario 2 the UK player has no casualty options that won’t result in stranding the fighter.  Since sub hits must be taken on sea units, the only casualty options are the one you chose or taking both hits on the carrier, dooming both fighters.  At any rate, taking the hit on the carrier and stranding the fighter is always an option.