Sukuramburu!

So the kids' brains have been implanted with a chip that creates in their minds an intense, augmented reality image of an ultra-nationalist bird monster. This bird monster serves as a guide for the children, cleverly isolating them from their parents, and then indoctrinating them with whatever message the state wishes to imprint on the youth.

What I want to know is whether this was done with the knowledge and consent of Major Kano, or whether these children were the targets of a clandestine military experiment, one which, for the purposes of dramatic impact, was probably signed off on by Major Kano's oldest and most trusted mentor.