By 1944 it was evident that the Japanese were going to lose the war, and their behaviour in Thailand had become increasingly arrogant. Bangkok also suffered heavily from Allied strategic bombing. Coupled with economic hardships caused by the loss of Thailand's rice export markets, this made both the war and Phibun's regime very unpopular. In July 1944 Phibun was ousted by the Seri Thai-infiltrated government. The national assembly reconvened and appointed the liberal lawyer Khuang Aphaiwong as prime minister. The new government hastily evacuated the British territories that Phibun had occupied and surreptitiously aided the Seri Thai movement, while at the same time maintaining ostensibly friendly relations with the Japanese.