Corfu incident The Corfu Incident was a 1923 diplomatic and military crisis between the Kingdom of Greece and the Kingdom of Italy . Background . There was a boundary dispute between Greece and Albania . The two nations took their dispute to the Conference of Ambassadors . The Conference of Ambassadors created a commission of English , French , and Italian officials to determine the boundary , which was authorized by the League of Nations to settle the dispute . The Italian General Enrico Tellini became the chairman of the commission . From the outset of the negotiations , the relations between Greece and the commission were negative . Eventually the Greek delegate openly accused Tellini of working in favour of Albania ' s claims . The incident in Greece . On August 27 , in 1923 the Italian general Enrico Tellini , three of his assistants and their interpreter fell into an ambush and were assassinated by unknown assailants at Kakavia , which is near the town of Ioannina , within Greek territory . The four victims included Enrico Tellini , Major Luigi Corti , Lieutenant Luigi Bonacini and an Albanian interpreter . None of the victims were robbed . They were attacked , according to some sources , the Italian newspapers and the official statement of Albania , by Greek nationalists ; while according to other sources and the official statement of Greece , by Albanian bandits . Italian and Greek reactions . Anti - Greek demonstrations broke out in Italy . The Greek newspapers condemned unanimously the crime , and expressed friendly sentiments towards Italy , they hoped that the Cabinet would give legitimate satisfaction to Italy but without going beyond the limits of national dignity . Italy sent an ultimatum to Greece on August 29 , 1923 , demanding : ( 1 ) a complete official apology at the Italian Legation in Athens , ( 2 ) a solemn funeral in the catholic cathedral in Athens in the presence of all the Greek Government , ( 3 ) military honours for the bodies of the victims , ( 4 ) full honours by the Greek fleet to the Italian fleet which would have sent to the Piraeus , ( 5 ) capital punishment for the guilty , ( 6 ) an indemnity of 50 million lire within five days of receipt of the Note and ( 7 ) a strict inquiry , to be carried out quickly with the assistance of the Royal Italian military attache . In addition , Italy demanded that the Greece must reply to the ultimatum within 24 hours . Greece has replied to Italy on August 30 , 1923 , accepting four of the demands which with modifications were as follows : ( 1 ) The commandant of Piraeus will express the Greek Government ' s sorrow to the Italian Minister , ( 2 ) a memorial service will be held in the presence of members of the Government , ( 3 ) on the same day a detachment of the guard will salute the Italian flag at the Italian Legation , ( 4 ) the military will render honors to the remains of the victim when they are transferred to an Italian warship . The other demands were rejected on the ground that they infringe the sovereignty and honor of Greece . In addition , the Hellenic government declared its complete willingness to grant , as a measure of justice , an equitable indemnity to the families of the victims , and that it didn ' t accept an enquiry in the presence of the Italian military attache but it would be pleased to accept any assistance which Colonel Perone ( the Italian military attache ) might be able to lend by supplying any information likely to facilitate the discovery of the assassins . Mussolini and the Italian Cabinet wasn ' t satisfied with the reply of the Greek government and declared that it was unacceptable . The Italian press , including the opposition journals , endorsed Mussolini ' s demands and insisted that Greece must comply without discussion . Bombardment and occupation of Corfu . On August 31 , 1923 , a squadron of the Italian Navy bombarded the Greek island of Corfu and landed 5000 or 8000 or 10 , 000 troops on it . Airplanes aided in the attack . The fires were concentrated on the old fort , which had long been demilitarized and served as a shelter for the refugees from Asia Minor and on the civil police school at the new fort which was a refugees shelter too . The bombarded lasted 15 or 30 minutes . From the bombardment 16 civilians were killed , 30 injured and two amputated , while according to other sources 20 killed and 32 wounded . There were no soldiers among the victims , all the killed and wounded people were refugees and orphans . The most of the killed were children . The prefect of Corfu , Petros Eyripaios , and Greek officers and officials were arrested by the Italians and detained aboard an Italian warship . The Greek garrison didn ' t surrender but retired to the interior of the island . After the landing , the Italian officers were worried that any British were wounded or killed and were relieved when they learned that there were no British among the victims . The residence of the British officer in charge of the police training school , who was away on vacations , was looted by Italian soldiers . Reactions after the bombardment and occupation of Corfu . The Greek Government proclaimed martial law throughout Greece . The Greek fleet has been ordered to retire to the Gulf of Volo to avoid contact with the Italian fleet . In Athens was held a solemn memorial service in the cathedral for the persons who were killed in the Corfu bombardment and the bells of all of the churches were tolled continuously . After the service , demonstration against Italy broke out . All places of amusement had been closed as a sign of mourning for the victims of the bombardment . After the protest of the Italian Minister , the Greek Government suspended for one day the Greek newspaper Eleftheros Typos for characterizing the Italians as " " the fugitives of Caporetto " " and has dismissed the censor for allowing the statement to pass . The Greek Government has provided a detachment of 30 men to guard the Italian Legation in Athens . The Greek newspapers were unanimous in condemning Italy ' s action . Italy closed the Corfu canal and the Straits of Otranto to the Greek ships . In addition , Italy had suspended all Greek shipping companies sailing for her and ordered the Italian ships to boycott Greece , although the Greek ports were open to Italian vessels . Greek steamers were detained in Italian ports and one had seized by a submarine in the straits of Corfu , but on September 2 , the Italian Ministry of Marine has ordered to release all the Greek ships . Anti - Greek demonstrations broke out in Italy again . The Italian government had ordered the Italian reservists in London to hold themselves in readiness for army service . The King of Italy , Victor Emmanuel III , returned to Rome from his summer residence immediately . The Italian military attache who had sent to inquire into the murder of the Italian delegates had been recalled by the Italian legation . Greek journalists had been expelled from Italy . Albania reinforced the Greco - Albanian frontier and prohibited passage across the frontier . Serbian newspapers declared that Serbia will support Greece . Some people in Turkey advised Mustafa Kemal to seize the opportunity to invade Western Thrace . Resolution . On September 1 , Greece appealed to the League of Nations , but Antonio Salandra , the Italian representative to the League informed the Council that he had no permission to discuss the crisis . Mussolini refused to co - operate with the League and demanded that the Conference of Ambassadors should deal with the matter . Britain favored referring the Corfu matter to the League of Nations , but French opposed such a course of action fearing that it would provide a precedent for the League to become involved in the French occupation of the Ruhr . With the threat of Mussolini to withdraw from the League and the French support the matter went to the Conference of Ambassadors . Italy ' s prestige was safeguarded and the French were relieved from any linkage between Corfu and Ruhr at the League of Nations . On September 8 the Conference of Ambassabors announced to both Greece and Italy , as well as to the League of Nations the terms upon which the dispute should be settled . The decision was that : ( 1 ) the Greek Fleet shall render a salute of 21 guns at the Piraeus to the Italian Fleet , which will enter the port , followed by the French and British warships , which shall be included in the salute , ( 2 ) a funeral service shall be attended by the Greek Cabinet , ( 3 ) military honours shall be rendered to the slain upon embarkation at Preveza , ( 4 ) Greece shall deposit 50 , 000 , 000 lire in a Swiss bank as a guarantee , ( 5 ) the highest Greek military authority must apologise to the British , French , and Italian representatives at Athens , ( 6 ) there shall be a Greek inquiry into the murders , which must be supervised by a special international commission presided over by a Japanese ( Lieutenant - Colonel Shibuya , who was a military attache of the Japanese embassy ) , and which must be completed by September 27 , ( 7 ) Greece must guarantee the commission ' s safety and defray its expenses and ( 8 ) the conference requested the Greek Government to communicate its complete acceptance immediately , separately , and simultaneously to the British , French , and Italian representatives at Athens . In addition , ( 9 ) the conference requested the Albanian Government to facilitate the commission ' s work in Albanian territory . Both Greece , on September 8 , and Italy , on September 10 , accepted it . Italy added , however , that she will not evacuate the island until Greece had given full satisfaction . In Italy everyone was satisfied about the Conference ' s decision and praised Mussolini . On September 11 , the Greek delegate , Nikolaos Politis , informed the Council that Greece has deposited the 50 , 000 , 000 lire in a Swiss bank and on September 15 , the Ambassadors Conference informed Mussolini that Italy must evacuate Corfu on the September 27 , at the latest . Mussolini accepted it 2 days later . On September 26 , before the inquiry had finished , the Conference of Ambassadors awarded Italy an indemnity of 50 , 000 , 000 lire , on the alleged ground that " the Greek authorities had been guilty of a certain negligence before and after the crime . " In addition , Italy demanded from Greece 1 , 000 , 000 lire per day for the cost of the occupation of Corfu and the Ambassadors of Conference replied that Italy reserved the right of recourse to an International Court of Justice in connection with the occupation expenses . In Greece there was a general depression for the decision , because Italy obtained practically everything she demanded . Corfu Evacuation . On September 27 the Italian flag was lowered and the Italian troops evacuated Corfu . The Italian fleet and a Greek destroyer saluted the Italian flag , and when the Greek flag hoisted , the Italian flagship saluted it . 40 , 000 resident of Corfu welcomed the prefect when he landed , and shouldered him to the prefecture . British and French flags were waved by the crowd which demonstrated enthusiastically in front of the Anglo - French consulates . The Italian squadron had been ordered to remain anchored till Italy received the 50 million lire . The 50 , 000 , 000 lire deposited in a Swiss bank were at the disposal of the Hague tribunal and the bank refused to transfer the money to Rome without the authority of the Greek National Bank , which was given on the evening of the same day . On September 30 , the Italian fleet , except one destroyer , departed . Aftermath . The ulterior motive for the invasion was Corfu ' s strategic position at the entrance of the Adriatic Sea . The crisis showed that the League of Nations was weak and couldn ' t settle disputes when a great power confronted a small one . The authority of the League had been openly defied by Italy , a founder member of the League and a permanent member of the Council . In addition , it showed the purpose and tone of the Fascist foreign policy . Italy ' s invasion of Corfu was Mussolini ' s most aggressive move of the 1920s . The reputation of Mussolini in Italy enhanced . In Corfu during the first quarter of the 20th century , many Italian opera s were performed at the Municipal Theatre of Corfu . This tradition came to a halt following the Corfu incident . After the bombardment the theatre featured Greek operas as well as Greek theater performances by distinguished Greek actors such as Marika Kotopouli and Pelos Katselis . Stamps . An Italian Post Office opened on 11 September 1923 on Corfu , issuing a set of 8 Italian stamps overprinted “ CORFU ” which were placed on sale on the 20th . Three additional stamps overprinted in Greek currency arrived on 24th . The third stamp was 2 . 40 drachma on 1 lire . The Post Office closed at midday on 26 September 1923 , only remaining open to dispatch the morning mail . The office had been open for 15 days . Three further values arrived on the day the Post Office closed , and were never issued . They eventually became available for sale at the postal ministry in Rome . Many used copies of these stamps , have forged postmarks , but it is known that the Corfu cancel was applied to hundreds of stamps before the Post Office closed .