Which of course is sorta the path Nunnally and Suzaku wants. The slow one.
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Also, it's a socio-economic thing. The Britannians have all the wealth in Japan. Are you going to take it from them? You could do so, but that would make for a lot of angry Britannians, who are one side of the equation as well. How else are you going to promote equality? Are you going to leave the wealth with the Britannians and leave the Japanese without?
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If we are to follow the britannian system then the best course of action is to give them all honorary britannian status to bring them closer and more tolerable to the britannians and go from there.
Though how they want to run this SAR is up to spectulation.