The New York herald., 1922-03-27
TURKEY TO RETAIN
CAPITAL AND THRACE
Concession Included in Me-
diatiOn Offer by Allied
Ministers.
TO COMPENSATE GREEKS
Anglo-Frcnch Cloud Over An
CORA Accord May BE
Dissipated.
TO COMPENSATE GREEKS

PARIS, March 26 ASSOCIATED Press).
Retention by Turkey of CONSTANT
nople and a large part of eastern
Thrace, TIE demilitarization of the
territories adjoining the straits of the
Dardanelles. whether allotted TO Tur-
key or Greece, and that an interna-
tional commission shall attend TO the
upkeep of the straits, are proposals
made by the allied Foreign Ministers
after five days consideration of Near
East questions.
The conclusions OF Premier Poin-
care, Marquis Curzon, the British
Foreign Secretary, and Signor Schan-
zer the italian Foreign Minister. are
believed to mark step toward a set
tlement Of a question which has been
one of the roots of unrest in the Old
ton between Turkey and Greece re-
moves the dilemma facing the French
of either taking a hostile attitude
toward Turkey or breaking with the
Allies. and also removes the cloud
created over Anglo-French relations
by the Angora accord.
Should tho Turkish Nationalist lead
ers find the proposed notifications OF the
Scvres treaty do not go far enough, II Is
pointed out that nothing has been done
in Paris which would stand in the way
OF continuing the negotiations.
A,t4t, To- oil Il,
have accepted the srmistice proposal.
made several days ago, and the Angora
representatives. when told of the For
eign Ministers decisions tonight. did
not hide their feeling Of satisfaction,
In connection with their proposal that
the straits territories be dcmilitarized.
the Ministers suggested that allied forces
on the Gallipoli peninsula and allied
military inspectors be charged with the
task of enforcing the measures. The
proposals are 10 be submitted TO the IN
terested parties. who will be invited to
send representatives 10 a city 10 be
chosen later. within three weeks. These
representatives will be assisted BY the
British, Italian and French High Com
missioners in Constantinople.
The task OF finding a means OF salts
Tying the desires OF the Armenians was
conhded 10 the League or Nations.
After two meetings to-day the Minis
ters were still at variance on certain is
sues, and with the desire OF reaching a set
tlement before Signor Schanzer left for
London 10 sec Premier Lloyd George, a
third session was called. IL was mid
night before announcement was made
that decisions had been reached on all
points.
II IS recognized by the Ministers that
the financial independence of Turkey
must in large measure be respected, and
that II compelled to bear the burden
entailed by her entry into the war beside
the Central Powers. Turkeys financial
capacity demands that a fixed indemnity
only be imposed. The Ministers decided
that the Ottoman public debt admins
tration should be maintained. and that
except for certain measures for the pro-
lection of allied economic interests. no
financial control be placed over Turkey
Measures to modify the situation that
exists by reason OF the treaties. called
capitulations. without compromising the
rights and interests Of foreigners Ia
Turkey were also studied by the Min
sters Under these capituiations. the
subjects OF Western Powers rcsiden;
In Turkey enjoy extra territorial privi.
Icupg