Foreign populations in Kobe have undergone three distinct stages of flux. The first phase can be marked by the arrival of the first foreigners who settled in the
fledgling Hyogo port, the area adjoining the current city and what would later be incorporated into the wider city of Kobe in 1868. From this point onwards, foreign communities thrived in the city throughout the Meiji, Taisho and Showa eras until the advent of WWII, which saw the population haemorrhage due to the outbreak of hostilities between the Allies and Japan. During the war, only foreign nationals whose countries were allied with the Japanese or whose countries remained neutral were allowed to live and work in the city as normal. The
hostilities marked the second transitional period for Kobe's foreign population as many of those who left before the war failed to return. A few did choose to return
however, and the influx of new e1nigres in the years after the -war changed the city's demographic once again. While the foreign population began to thrive once
more in the city as the Japanese economy recovered, the foreign nationals living in Japan never regained as much influence as they had done before the war. The third, and final stage for the city's expatriate community was marked by the Great Hanshin Earthquake of 1995. While the disaster affected every resident living in the affected area, Japanese or otherwise, the community was again disrupted as many of the workplaces associated with expatriates in Kobe, such as shipping and foreign consular work, were relocated to nearby Osaka.