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 received from China, and with voluntary contributions from patriotic persons. In the immediate sequel of the war, the Government elaborated a large programme of armaments' expansion and public works. The army, at the time of the war, consisted of six divisions and the Imperial Guards; the peace establishment being 70,000, and the war strength, 268,000. The navy comprised thirty-three vessels—exclusive of twenty-six torpedo boats—representing a displacement of 63,000 tons. It was resolved to raise the number of divisions to twelve, with a peace establishment of 145,000 and a war strength of 560,000, and the navy to sixty-seven ships (besides eleven torpedo-destroyers and one hundred and fifteen torpedo boats) with an aggregate displacement of 258,000 tons. The expenditures for these unproductive purposes, as well as for coast fortifications, dockyards, and so on, came to 314,000,000 yen, and the total of the productive expenditures included in the programme was 190,000,000 yen,—namely, 120,000,000 for railways, telegraphs, and telephones; 20,000,000 for riparian improvements; 20,000,000 in aid of industrial and agricultural banks, and so forth—the whole programme thus involving an outlay of 504,000,000 yen. To meet this large figure, the Chinese indemnity, surpluses of annual revenue and other assets, furnished 300,000,000, and it was decided that the remaining 204,000,000