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 the Allied bombing raids. This, plus the economic hardship caused by the loss of Thailand's rice export markets, made both the war and Phibun's regime very unpopular, and in July 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 aided the Seri Thai movement while at the same time maintained friendly relations with the Japanese.
The British were in favour of treating Thailand as a defeated enemy, but the Americans had no great sympathy for British and French colonialism and decided to support the new government. Thailand thus received little punishment for its wartime role.