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Where is all the fuel (and ammo etc.) coming from to supply the subs and B-17s and hundreds of fighters operating out of Hawaii? Doesn't Hawaii itself have to be resupplied? Don't the Hawaiian Islands have a large civilian population with it's own needs?
I don't foresee B-17s and Catalinas flying night raids being a major problem for small island airstrips. They weren't that easy for Japanese pilots to shoot down (usually) but they never hit much either in most cases.
With the capture of Atolls the Japanese could, in theory, use army planes and army pilots, who were not as rare as trained carrier capable navy pilots.
For anyone who thinks that the French frigate Schoals would have been useful for the Japanese.
Pacific Airfields
In other words the Japanese need
1. a lot dredging equipment
2. a lot of construction equipment
3. a lot of time (an awful lot of time)
To have anything more than a sheltered anchorage at this location.
Putting a flying boat/float base within range of land based air from Hawaii doesn't sound like a good idea.
Not to mention that cruisers could run in under cover of darkness, bombard and get back to land based fighter coverage by dawn.
Some of those Japanese Destroyers at Tassafaronga were also modified for transport duties just like some US warships had been - I didn't have time to address this comment upthread but no they didn't just put cots on the deck of those ships. So the Japanese force was not even really a full strength Destroyer squadron.
But I admire this plan for sheer undiluted lunacy. It's so insane, it has to work.