Japanese Flag Translation Please

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I know that the souvanier trade was very active during and following the war.

Matter of fact, one of the captured I-400 submarines had it's compliment of Seirans removed and scuttled, then the sub's hangar was crammed full of souvaniers, which were then transported to Pearl Harbor.

So it was a profitable trade, and you can be sure that folks were making replicas to get in on the trade.
 
Thanks again for continued discussion. I am not 100% sure of the history on the flag. It was found with other items from my grandfathers military effects after my grandmother passed. Assuming it was from him he was stationed in shanghai from 1933 thru 1935 so it would be pre world ii.
 
This kind of fake-look flags have been regarded naught but, as GG pointed out, if they were produced as souvenirs in the 1930s or 40s, I think they should be regarded and studied as another category of historical items.

Thank you very much, TexasTiger, for giving us a great chance to learn more about our mutual history! :)
 
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