to make "Full Use of Industry", Trade Supplies sufficient for a % of IC's, and let them provide back unused. Not doing this will make them trade "Supplies for Resources", cutting into their Production IC's.
Nice Trick: To Jump-Start a new Puppet, Send them a boatload of Supplies to "Stock their Pantry", using the "open Negotiations" feature. about 2500 Supplies should be enough to push their sliders to full production. This is ESPECIALLY IMPORTANT for countries low on Manpower, as YOU are more efficient making supplies (especially with Production Techs), while they will never drain their manpower. Good "Symbiotic" relationship. Just keep "Feeding their troops", and they'll keep "Breeding"