The war of 1904–05 was fought between the Empire of Russia, an international power with one of the largest armies in the world, and the Empire of Japan, a nation that had only recently industrialized after two-and-a-half centuries of isolation. A series of battles in the Liaodong Peninsula had resulted in Russian armies being driven from southern Manchuria, and the Battle of Tsushima had resulted in a cataclysm for the Imperial Russian Navy. The war was unpopular in Russia, whose government was under increasing threat of revolution at home. On the other hand, the Japanese economy was severely strained by the war, with rapidly mounting foreign debts, and Japanese forces in Manchuria faced the problem of ever-extending supply lines. No Russian territory had been seized, and the Russians continued to build up reinforcements via the Trans-Siberian Railway. Recognizing that a long war was not to Japan's advantage, the Japanese government as early as July 1904 had begun seeking out intermediaries to assist in bringing the war to a negotiated conclusion.