A Wrinkle Smoothed

As forecast, the trouble between the Turks and the Greeks over indemnities was solved by compromise.

The Turks claimed $750,000,000 to indemnify them for damage and loss of life caused by the Greeks in Anatolia during their retreat to Smyrna last Fall. The Greeks replied with a counter claim for $500,000,000 for damage and loss of life caused by the Nationalist Turks prior to the Spring of 1921. Both declined to pay. The Turks pointed out that it was unusual for the vanquished to demand an indemnity from the victor. The Greeks contended that they were invited by the Allies to administer a mandate in Turkey in accordance with the terms of the Treaty of Sevres. They had failed in their attempt to exercise that mandate, but it was for the Allies and not Greece to pay any indemnity the Turks might ask. Neither side would give way and the situation began to assume serious proportions as the Turks and Greeks mobilized their armies.

The Allies (backed by the United States) bluntly told them that they would not tolerate a renewal of hostilities, which, they said, might involve all Europe.

The terms of the indemnity agreement are:

1) Greece acknowledges responsibility for the damage. Owing to the financial situation Turkey will not demand an indemnity.

2) Turkey to receive Karagach (junction suburb of Adrianople, across the river Maritza) and the railway line from Luli Gurgas, on the Bulgarian Frontier, to Karagach. This means shifting the Turko-Greek boundary in Thrace further west.

3) Mutual restitution of ships captured since the Mudros armistice of 1918.

The Bulgarians, however, were not so pleased about Karagach passing into Turkish hands; nor do they relish the growing power of Turkey (their age-old enemy) in Europe.

It is now confidently expected that a general peace treaty will be concluded at Lausanne. The capitulation question was also solved, it being agreed to negotiate separate treaties between Turkey and other nations, to determine the privileges of foreigners in Turkey. These treaties are to be completed within a year. In the meantime Turkey guarantees to keep the status quo.