~Hiruzen Sarutobi POV, same time frame~
Several Clan Leaders, Elite Jonin, the Elders of Konoha, and the re-coronated Third Hokage, Hiruzen Sarutobi, all sat around a large round table wearing a grim expression facing one clan leader, Fugaku Uchiha.
Hiruzen slowly, but hesitantly said, "Fugaku everyone in Konoha saw the swirling sharingan in the eyes of the Nine Tailed Fox. While it is commendable that you and the Uchiha clan in realizing that you would and might be the most suspected, held off and did not engage. It is also without a doubt that the Uchiha do bear some blame for this incident of the highest caliber. While Elder Danzo's ROOT was monitoring the Uchiha Clan we have confirmed that the attacker was not within the Uchiha Compounds. While in theory this should clear the Uchiha name, I'm afraid in Minato's last moments. Or rather Kushina's last moment we were able to gather some rather damning evidence. While not incriminating, nor accusatory of the Uchiha Clan of Konohagakure, it does reveal that at the very least the Uchiha bloodline has leaked outside of Konoha."
Hiruzen nodded to an ANBU member who then passed out sketched designs of a masked man and the shuriken like pattern in his eyes, before saying, "This man was the attacker behind the Nine Tails. Not only controlling the beast to destroy or attempt to destroy Konoha, but he also bypassed all barriers and entered into the heart of Konoha and released the beast from… the former Jinchuriki. Not only was this information highly sensitive… only a few in the village knew it. Including your wife Mikoto Uchiha, Fugaku-san. Minato did not die sealing the Nine Tails, but rather because his fight with this masked man consumed as chakra to the point Minato's only option was to die and take the beast with him, leaving it sealed in his only son. I do not blame you Fugaku for this attack, but you must understand. The people of Konoha need an answer. Not to mention a user of the Mangekyo sharingan can't have come from some diluted bloodline of the Uchiha, but rather someone from the main family. Such as yourself, or even certain elders. Combined with the fact that the Uchiha were partially aware of the location of Kushina Uzumaki during her birth and when her seal was weakened, all evidence points in the same direction I'm afraid."
Fugaku, a man with deep brown hair, deep frown lines, and an overall appearance that made him seem older than he actually was. Frowned even deeper than his frown lines. Before replying, "I'll investigate, Lord Hokage, thoroughly. You should understand that Minato was my close friend and Kushina was Mikoto's best friend. We of the Uchiha Clan would never harm them."
Hiruzen nodded warily before saying, "As much as I believe that I must give an answer to the hundreds who've died. Who've had their livelihoods affected and much to my dismay those who question where the Uchiha Clan was during the attack and those who question if the Uchiha were behind the attack. Madara Uchiha did attempt something similar. All together I'm afraid the situation demands that the Uchiha Clan be… monitored and temporarily isolated. After a period of ten years if the Uchiha Clan shows no problems, you will be allowed to return to your current territory. Until that time the current Uchiha shopping districts will be leased out and since the central portion of the Uchiha Clan territory was destroyed in the Nine Tails attack, it shall be used to compensate the villagers and the village. The remainder of the Uchiha territory will remain under supervised management by the Uchiha Clan. Though the Uchiha will not be allowed to remain there. As for the new clan compound that will be allotted land… the Uchiha clan will have to pay for the construction themselves as the village's finances are currently stretched thin. As much as I hate to do this… the elders, elder Danzo, and those on the council have already proposed and accepted this proposal."
Fugaku's expression turned grave as he warily looked around the room before letting out a dry chuckle saying, "It seems we of the Uchiha don't have a choice in this matter, so why tell us? If the matter has already been settled please just send a notice, we are not that unruly. Though after ten years our property and lands had better be returned in proper fashion."
Not wasting any more time Fugaku stood up and left the meeting room.
Hiruzen's eyes closed and his shoulders slightly slumped. While others in the room shifted around uncomfortably. Shibi, the leader of the Aburame clan muttered, "Was this really the right thing to do if we know that the Uchiha clan is not at fault?"
Another raspy voice responded, "Because of public opinion Lord Hokage had no choice in the matter… Though this will undoubtedly lead to an ill response from the Uchiha Clan. Temporarily moving out… in ten years will the center of the village even have enough space for the Uchiha to return to? Nor did we really discuss how much of the Uchiha Clan's lands are being given away due to destruction."
The scarred man's face turned towards the Hokage and Hokage's elders. Hiruzen drily replied, "Nearly all of the Uchiha Lands except their former clan shrine and clan head's house will be redistributed away. This is something that the two Elders and advisor Danzo Shimura have decided. I have not objected to this as in ten years who knows how the village will develop."
Danzo finally opened his mouth, "Shikaku Nara… There's no need to question it so much. The Uchiha are obviously at fault, the red glowing sharingan in the eyes of the Nine Tails cannot be denied. To answer the villagers, the Uchiha must be sidelined and compensation must be offered."
None of the clan leaders said anything to this. The silence grew before Hiruzen broke it saying, "On another note. We must discuss the now re-erupting battlefields. Kumogakure and Kirigakure have both begun harassing our borders after learning of the death of the Fourth Hokage. We cannot allow another war to enter the Land of Fire. Jiraiya will be deployed to the Kumogakure battlefront alongside the Nara, Akimichi, and Yamanaka clan heads as deputy commanders, alongside them will be Elite Jonin Hayame Shirakumo and Elite Jonin Shinku Yuhi. The Kirigakure front will have the Hyuga and Uchiha clans with both Orochimaru as the commander along with Hiashi and Fugaku as deputies along with Shibi Aburame, Shinnosuke Sarutobi, and Tsume Inuzuka. Any questions-?"
Shikaku interrupted, "What about Lady Tsunade? She's returned and she's actually staying this time."
Hiruzen shook his head saying, "Tsunade wants nothing to do with war, the most she'll do is revamp our medical system and maybe teach some medical ninjutsu class. She's taken to that boy Soutarou Morita that you've all heard about. Alongside him she's spending her time training Nono Yakushi and Kabuto Morita. That's already more than Tsunade usually would do, so asking for more isn't realistic. She's always been a free-spirit afterall…"
Hiruzen glanced around the room before concluding with, "Very well then, the ANBU will release when your deployments are and when the armies are ready. Let's not let this war drag on. May the will of fire guide you all."
As the clan leaders exited and bid the Hokage farewell, three figures remained in the room. Hiruzen sighed and said, "What is it now you three?"
Koharu sternly said, "Hiruzen, the Uchiha have gone too far this time. Who do they think they are to leave in such a manner? Do they think themselves above the Hokage?"
Homura added, before chiding Koharu lightly, "Indeed the Uchiha have shown great discontent this time, but Koharu let's not lose our bearings if any of our families or clans were wrongly accused for something on this scale I'd dare say they'd rebel the next day-"
Danzo snorted and said, "The Uchiha have shown their true colors, they disregard authority, raze Konoha, Hiruzen they are an inherently unstable factor! With Fugaku Uchiha at helm things may seem at ease for now. However, the Uchiha clan produces far too many geniuses. At barely ten years old Shisui Uchiha has already awakened the three tomoe and earned the moniker Shisui of the Bodyflicker. Not to mention Fugaku himself who earned the title, Fugaku the Wicked Eye. What of Fugaku's sons? His son, Itachi Uchiha has already shown extreme talent. Hiruzen the Evil Uchiha will rebel over this disenthronement of their clan lands. They are inherently an unstable factor, combined with the hawks in the Uchiha Clan that elder Setsuna will gain traction once again. Do not forget what they did in Sensei's tenure, Hiruzen-"
Hiruzen's chakra flared powerfully, "Do not forget I am the Hokage, Danzo. I understand well what can and will happen. Your actions to subvert me and order the Uchiha Clan to leave their lands earlier is unacceptable. Not to mention your actions of unsubtly spreading rumors and vicious intent across the village. Last time I let you run amok, the White Fang, a hero of Konoha committed suicide. Do not think I do not know what did with Haruto Morita either. What of the rest of the Senju Clan? Both Tsunade and Soutarou are close and by now I've already revealed Soutarou's true lineage to Tsunade. If you try to repeat your actions from the remaining Senju with the Uchiha. Then I'll take away your ROOT, your title, all your rights, and reduce you to nothing more than an Elite Jonin named Danzo Shimura. Do not cross the bottom line Danzo. Monitor the Uchiha, but do not cross that very thin line Danzo, or the day I raise my bo staff at you won't be long."
As Danzo got up with a grunt and a glare and began to open his mouth, Hiruzen interrupted and said, "No. No, I will not regret this Danzo. Don't slam the door on your way out or I'll finally take money out of the root's budget for the last thousand doors you damaged."
Danzo's face turned red as he angrily grit his teeth and slowly opened the exit door and closed it similarly behind him..
~Danzo POV~
As he closed the door behind him he uttered, "You won't regret it? I'll make you regret this Hiruzen Sarutobi!"
As Danzo left the Hokage building and began to head towards the outskirts of the village a ROOT operative landed near Danzo's feet saying emotionlessly, "The Uchiha have begun building their new clan grounds. We've implanted hundreds of monitoring seals just as you've ordered."
Danzo's eye narrowed before saying, "Continue to monitor the Uchiha's construction. Notify me if they make any secret rooms or hiding places. I want to know everything."
Danzo then looked upwards towards the Hokage mountain thinking,
***Author's Note: I never understood one thing… If Hiruzen was good then Danzo couldn't have been too insane. Since I'm trying to keep Hiruzen as a good person, kind of ok Hokage, I tried to use this chapter to add a bit of logic into Danzo's mentality… Basically he's a Tobirama Fan Boy… Anyways this is important later.***