Why does the navy make the japanese families move away from terminal island?

If you are referring to the Farewell to Manzanar story, they were removed from the area because the United States started turning the base into a military one and they didn't want to have Japanese people, with whose country of emigration they were at war, to be near a naval base that was important for future military endeavors.

C) the conditions in the factory have never been questioned by the employee.