An all-submarine Germany shifts Royal Navy power east

How would British preparation for an all-submarine German navy affect the Royal Navy's war against Japan?

Britain could redirect most capital ships and carriers from containing Germany to defeating Italy and deterring or fighting Japan.

An all-submarine German navy would leave Britain with fewer reasons to hold its capital ships against a German surface threat. In this counterfactual, concentrated British strength could defeat the Italian fleet around the time of Taranto and then move into the Indian Ocean. Japan would face a much larger British force there while the United States Pacific Fleet remained at Hawaii. A surprise attack could severely damage one opposing fleet, but could not readily dispose of both. The participants disagree over whether Japan would still feel compelled to fight or whether this combination could force its leaders to seek another course.