cated by the
retention of a number of the islands by Italy until Turkey should
fulfil all the provisions of the Treaty of Lausanne arising from the
Tripolitan war. The Greeks asserted that their fleet would have taken
all the islands except for the Italian occupation. Moreover, they are
suspicious of Italian intentions, especially with regard to Rhodes. The
ambassadorial conference in its collective note to the Porte had
advised the Porte "to leave to the Powers the task of deciding upon the
fate of the islands of the Aegean Sea and the Powers would arrange a
settlement of the question which will exclude all menace to the
security of Turkey."

The third question in dispute concerned a money indemnity. The war had
been a fearful drain upon the resources of the allies. They were
determined not to share any of the Ottoman debt and to compel Turkey,
if possible, to bear the financial burden of the war. But to yield to
this demand would absolutely destroy Turkish credit. This would result
in the financial ruin of many of the subjects of the great Powers.
Hence this demand of the allies met with scant favor in the
ambassadorial conference.

The war dragged on during the entire month of February without changing
the relative positions of the belligerents. In the mean time, the
relations between Austria-Hungary and Russia were daily becoming more
strained. This was due to the determination of Austria-Hungary to
prevent Servia from securing a seaboard upon the Adriatic. In the
slogan of the allies, "the Balkan peninsula for the Balkan peoples,"
Austria-Hungary found a principle which could be utilized against their
demands. She took the stand that the Albanians are a Balkan people
entirely distinct from Slavs and Greeks and particularly unfriendly to
the Slavs. It would be as suicidal to place any of the Albanians under
the Slavs as to put back any of the Slavs under the Turks. Albania must
be an autonomous State; that it may live in peace, it must possess its
seaboard intact. In this position Austria-Hungary was seconded by
Italy, which has interests in Albania as important as those of
Austria-Hungary. Neither State can afford to allow the other to possess
the eastern shore of the Adriatic; and both are determined that it
shall not fall into the possession of another possibly stronger power.

As early as December 20, 1912, the ambassadors had recommended to their
governments, and the latter had accepted, the principle of Alb