Nishihara Loans
The were a series of loans made by the Japanese government under the administration of Prime Minister
Prime Minister of Japan
The is the head of government of Japan. He is appointed by the Emperor of Japan after being designated by the Diet from among its members, and must enjoy the confidence of the House of Representatives to remain in office...

 Terauchi Masatake
Terauchi Masatake
, GCB was a Japanese military officer and politician. He was a Field Marshal in the Imperial Japanese Army and the 18th Prime Minister of Japan from 9 October 1916 to 29 September 1918.-Early period:...

 to the Anhui clique
Anhui clique
The Anhui clique was one of several mutually hostile cliques or factions that split from the Beiyang Clique in the Republic of China's Warlord era. It was named after Anhui province because several of its generals including its founder, Duan Qirui, was born in Anhui...

A warlord is a person with power who has both military and civil control over a subnational area due to armed forces loyal to the warlord and not to a central authority. The term can also mean one who espouses the ideal that war is necessary, and has the means and authority to engage in war...

 Duan Qirui
Duan Qirui
Duan Qirui was a Chinese warlord and politician, commander in the Beiyang Army, and the Provisional Chief Executive of Republic of China from November 24, 1924 to April 20, 1926. He was arguably the most powerful man in China from 1916 to 1920.- Early life :Born in Hefei as Duan Qirui , his...

 from January 1917 to September 1918, in exchange for territorial concessions and rights in northern China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...


In January 1917, Prime Minister Terauchi sent a personal envoy, a private businessman named Nishihara Kamezo (1873–1954) to negotiate a series of eight loans totaling 145 million yen to the leader of one of the splinter groups of the former Beiyang Army
Beiyang Army
The Beiyang Army was a powerful, Western-style Chinese military force created by the Qing Dynasty government in the late 19th century. It was the centerpiece of a general reconstruction of China's military system. The Beiyang Army played a major role in Chinese politics for at least three decades...

, Duan Qirui. Nishihara was backed by Finance Minister
Minister of Finance (Japan)
The is the member of the Cabinet of Japan in charge of the Ministry of Finance. This position was formerly cited as being Japan's most powerful and one of the world's, because Japan had historically held the largest foreign exchange reserves...

 Shoda Kazue, formerly the president of the Bank of Chosen
Bank of Joseon
The Bank of Joseon or Bank of Chosen was the central bank of Korea under Japanese rule, and of South Korea under American occupation. The bank issued the Korean yen from 1910 to 1945 and the won from 1945 to 1950.-History and background:...

 in Korea
Korea ) is an East Asian geographic region that is currently divided into two separate sovereign states — North Korea and South Korea. Located on the Korean Peninsula, Korea is bordered by the People's Republic of China to the northwest, Russia to the northeast, and is separated from Japan to the...

. The loans were ostensibly private loans made by private banks as investments in the development of China; however, in reality the loans were underwritten by the Japanese government assist Duan Qirui in his civil war to overcome his rivals for control of northern China.

In return for this financial support, Japan received confirmation of its claims to the former German possessions in Shandong Province, control of the railways in Shandong Province, and additional rights in Manchuria
Manchuria is a historical name given to a large geographic region in northeast Asia. Depending on the definition of its extent, Manchuria usually falls entirely within the People's Republic of China, or is sometimes divided between China and Russia. The region is commonly referred to as Northeast...


When the loans and details of the agreement were leaked to the public, Duan Qirui was virulently attacked for having made traitorous deals with the Japanese. Some of the rights granted to Japan were very similar to the 5th clause of the recently rejected Twenty-One Demands
Twenty-One Demands
The ' were a set of demands made by the Empire of Japan under Prime Minister Ōkuma Shigenobu sent to the nominal government of the Republic of China on January 18, 1915, resulting in two treaties with Japan on May 25, 1915.- Background :...

. This popular discontent grew into the May Fourth Movement
May Fourth Movement
The May Fourth Movement was an anti-imperialist, cultural, and political movement growing out of student demonstrations in Beijing on May 4, 1919, protesting the Chinese government's weak response to the Treaty of Versailles, especially the Shandong Problem...

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