Kwantung Leased Territory
As the southern part of the Liaodong Peninsula was ruled by Japan as the Kwantung Leased Territory, leaving Manchukuo with very little coastline, the leadership of the Japanese Kwantung Army regarded the development of a Manchukuo navy to have a very low military priority, although it was politically desirable to create at least a nominal force as a symbol of the legitimacy of the new regime.