the first industrial revolution, but Hungary had a better position in the industries of the second industrial revolution, in these modern sectors of the second industrial revolution the Austrian competition could not become dominant. This division of labour between the east and west, besides the existing economic and monetary union, led to an even more rapid economic growth throughout Austria-Hungary by the early 20th century. The most important trading partner was Germany (1910: 48% of all exports, 39% of all imports), followed by Great Britain (1910: almost 10% of all exports, 8% of all imports). Trade with the geographically neighboring Russia, however, had a relatively low weight (1910: 3% of all exports /mainly machinery for Russia, 7% of all imports /mainly raw materials from Russia). In the Galician north, the Kingdom of Galicia and Lodomeria, an ethnic Pole-administered autonomous unit under the Austrian crown, became the major oil-producing region of Europe. Railways The Austro-Hungarian Empire realized it needed railways for it had a large population and large territory where travel was difficult. It needed long lines to its coastal ports on the Black Sea and the Adriatic Sea. The railway system was built for light duty traffic. The system provided a local demand for iron and steel, coal, rolling stock, terminals, yards, construction projects, skilled workers and manual labor. Although much of the engineering expertise was imported, most of the labor and materials were provided by the empire itself. When Austria and Hungary united in 1867, 6000 km of lines had been built, chiefly in the more industrialized Austria. Quickly all the major cities were linked together by 7600 km of new lines. This promoted rapid industrialization around Vienna, Bohemia, and Silesia. The worldwide economic downturn of 1873 ended the construction boom. After 1880 three-fourths of the lines were nationalized. The Orient Express from Vienna to Constantinople was a prestige line, but added little to the economy. After 1900 a new major factor was outward emigration – over 2 million left for the United States in 1900-1914. By 1914 43,280 km were in operation, exceeded in length only by Russia and Germany. Although of lighter weight and not as well-managed as the German lines, the Austro-Hungarian system played a major role in supporting the Army in the First World War. Half of the rolling stock was reserved for the Army, and the rest was being run down and cannibalized. The