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A common HR for the 12/7 allied turn is to move only the USN CV TF and make changes in China. The AVG starts outside of China in Mandalay, although assigned to the China command. Given the constraints of the HR, is this considered a Chinese unit that can be repopulated with pilots and/or moved?

Go for it Bill. The HR is only to preserve the element of surprise. "Normal" movement even in PH would be consistent with this intent.