Little Kyoto was a small but thriving part of the German capital. Though it was safe, clean, and exotic, it was anything but a paradise. In reality, this small section of town was a glorified internment camp for the Japanese refugees who sought safety within the borders of the Reich.
Despite the fact that all refugees were thoroughly vetted before permitted entry into the German Empire, they lived under constant surveillance by German Intelligence. After all, it was unwise to leave a population which defected from a hostile Empire to themselves.
In fact, Little Kyoto acted as an experiment in both counter-intelligence and crime prevention. Cameras were around every street corner, which fed their video and audio recordings to a remote viewing station within the headquarters of Imperial Intelligence, where a team of observers kept close watch for any signs of crime or rebellious intent.