After the British surrender, the Japanese tried to consolidate their power by collaborating with the local Chinese leaders.
In January 1942, few weeks after the British surrender, Lieutenant General Takashi Sakai invited about 130 leading Chinese and Eurasian leaders in Hong Kong to a formal luncheon set at the Peninsula Hotel in Kowloon.
In the meeting, Saikai elaborated the idea of the Greater East Asia Co-Prosperity Sphere where the Chinese and Japanese should cooperate with each other.
Although the council met twice a week to discuss issues, it had limited power.
[2] It also headed the District Affairs Bureaux Councils and the wards which were staffed by Chinese.