Well from the article you linked I see no indication of them being granted their own state they meant to settle them in their territory and possibly occupied Shanghai. Like I said I interpret it as the Wiki article states that Japan realized benevolence to Jewry could be beneficial in its dealings with the USA. What's the mystery?

Edit: Ok, I re-read the article and the Japanese government really believed having their own Jewish colony would have earned them economic benefits from America. It's just hilarious in hindsight since modern Japan doesn't have any Jewish ambassadors yet they still have gotten positive trade deals from the USA anyway.

Stop smoking crack you moron. Germany was delighted -- and so were the Zionists -- to send Jews anywhere they bloody could including Palestine. See the Havara agreement. They would have been pleased as punch for the Japs to take the Jews off their hands.

You don't see the immediate problem of Jewish refugees fleeing to another country while persecution against their kind existed? Unless Japan had some plan to keep them on a leash, there's no doubt any survivors would have called for revenge.