@Ruanek:
I could have sworn the UK could occupy French Indo-China to get its 2 IPCs. And occupying territories controlled by powers whose capital is taken is similar in the concept for occupying the Dutch East Indies.
Nope. Dutch territories are a special case.
@Ruanek:
In any case, what’s the logic behind not being able to occupy friendly territories whose capital is taken but being able to do it after liberating it from the enemy?
What Gargantua said. Also, it’s not nice to kick your friends when they’re down and plunder their territories. Besides, what if there are still units belonging to your ally in the territory? Will they just let you walk in and take over?