Japanese and flamethrowers

Thanks for your time.

Just got Lock N/ Load tactical and the Heroes of the Pacific Module.

Had a question about the use of flamethrowers against Japanese leg units. As Japanese units don't break if a unit fails a morale check and is reduced due to damage caused by an American flamethrower do they have to retreat or as they're not technically broken they just reduce and stay in hex.

Tried to find a clarification in rules but as I'm new to the system May have missed it.

Thanks
 
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