Of course it can. It makes no difference that originally it was a neutral territory. Its current status is a territory of the United States and therefore, with an IPC value of two,it can be a location where a minor industrial complex can be placed.
I haven’t been able to post a map picture, but after thinking about it more, additional context of the German army disposition in nearby territories could impact the decision as well, as they would be the next power in theater to move. If France taking Kaz’ would prevent any armored and mechanized forces from Novosibirsk moving through Kaz’ into the Caucasus, it may be woth sacrificing the 1 IPC income to prevent Germany from securing a 5 IPC bonus. Always multiple points of context to consider, which makes for a very rich gameplay.
The reason that defending Surprise Strike casualties are moved behind the casualty strip is that some of them may be subs, which will return fire if there are no attacking destroyers.