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with Turkey.

in the town rose in revolt; but the rebels were beaten off with heavy losses. P.eenforcements were hurried across, and sub- sequent attacks were repulsed. But on June 24 Sig. Giolitti announced that Italy would withdraw her troops from Albania, and open negotiations with the Tirana Government. The negotiations initiated on July 4 were concluded at Tirana on Aug. 3, Italy agreeing to evacuate Albania, retaining only the island of Saseno, which dominates Valona harbour. The last Italian troops left Valona on Sept. 2.

At the Spa Conference (July 5-16) Italy, represented by Count Sforza and Sig. Bertolini, who was Italian delegate on the Reparations Commission, succeeded in getting her Treaty share of the German indemnity raised to 10%, that of the Austrian, Hungarian and Bulgarian indemnities to 25 %, while Great Britain and France ceded to Italy their share of the Austrian tonnage. On Sept. 6 a meeting of Italian, British, French and German delegates met at Stresa to deal with the distribution of foodstuffs and coal. Incidents occurred between Italian and Greek troops in Asia Minor, as the latter constantly tended to go beyond the limits assigned to their occupation. On Aug. 6 Count Sforza announced that, as the Turkish treaty was about to be signed, the Tittoni-Venizelos agreement was rescinded. The treaty with Turkey was signed at Sevres on the roth. Italy obtained economic priority over a wide zone in Anatolia, extending from the Gulf of Adramit, round the territory assigned to Greece, to the watershed between the Great and the Little Meander, then along the latter to the sea coast and from Scala Nuova to a point between Adalia and Se- levke, and inland as far as Konia; she also acquired a concession for exploiting the Heraclea coal fields. A separate agreement was concluded with Greece concerning the islands; Italy would cede the Dodecanese minus Khalki and Castellorizo, which together with Rhodes would remain under Italian rule for 1 5 years, and then, if Britain evacuated Cyprus, a plebiscite was to decide to whom they were to belong. On Aug. 21 Sig. Giolitti had a friendly meeting with Mr. Lloyd George at Lucerne, when it was agreed that, as long as Russia tried to impose on Poland condi- tions incompatible with her independence, it was impossible to have dealings with her. On Sept. 11-14 ne conferred with M. Millerand at Aix-les-Bains on the general political situation. These conferences tended to improve Allied relations.

For some months the Adriatic question was not discussed, but numerous incidents occurred in Dalmatia between Italians and Slavs. Serious disorders occurred on July n at Spalato, where the Croatian mob murdered the commander of the Italian cruiser " Puglia " and wounded other officers and sailors. Protest demonstrations were held at Trieste on the I3th, and, in conse- quence of shots being fired from the offices of one of th'e Yugo- slav institutions, several of the latter were burnt to the ground or wrecked. At Fiume the National Council resigned on Sept. 7, and D'Annunzio proclaimed the independence of the town and its territory under the name of " Reggenza del Carnaro," for which he composed a curious semi-mediaeval constitution, but its frontiers were not defined. Incidents also occurred in the plebiscite area of Carinthia, where Yugoslav bands attacked and wounded some Italian officers and men (Sept. 26); the Yugo- slavs were, however, obliged by the Allies to evacuate that region, and the plebiscite resulted in favour of union with Austria.

As long as Mr. Wilson was president of the United States no settlement of the Adriatic problem was possible. Now, how- ever, that his term was nearly up, the Yugoslavs felt tnat a di fect understanding with Italy was the best way out of the tangle. The Italian Government communicated to Britain and France the conditions it intended to propose to the Yugoslavs, and both the Allies brought pressure to bear on Belgrade to accept them. A meeting was held at Rapallo on Nov. 8, Italy being represented by Sig. Giolitti, Count Sforza and Sig. Bonomi, assisted by Gen. Badoglio and Adml. Acton, and Yugoslavia by MM. Vesnich, prime minister, Trumbich, Minister for Foreign Affairs, and Kosta Stojanovich, Minister of Finance, assisted by Col. Kalafatovich. Negotia- tions were rapidly conducted, and on Nov. 12 the treaty was

signed. 1 Italy agreed to waive her rights based on the Pact < London over Dalmatia, while Yugoslavia renounced all claims to Trieste, Gorizia and Istria, and certain adjoining districts of Carinthia and Carniola. The following frontier was agreed upon: Monte Pec (where Italy, Austria and Yugoslavia meet) to Mt. Yalovets (Jalovec), the watershed between the Isonzo and the Wurzen See and then the Wocheiner Save, N.E. slopes of Mt. Mozik, E. slope of Mt. Porzen, W. slope of Mt. Blegos (leaving the Podlanisham passes to Italy), Zelse, Cabranska, E. of Mt. Trstenik, E. of Griza, E. of Matuglie, frontier of Fiume on the Fiume-Castua road; the islands of Cherso, Lussin, Lagosta and Pelagosa were assigned to Italy, and also the town of Zara. Italy and Yugoslavia recognized the full independ- ence of the state of Fiume, consisting of the ancient Corpus Separatum and a small strip of Istrian territory. All Italian- speaking natives of the territories assigned to Yugoslavia were granted the right to opt for Itab'an citizenship without having to leave the country, and full freedom of language, culture and religion, with reciprocity for Yugoslavs in Italy; special provisions in favour of economic concessions accorded to Italian citizens before Nov. 1 2 1920 were agreed to. Italy renounced her rights to the part of Dalmatia assigned to her by the Pact of London, except for the town of Zara, to all the islands except those men- tioned above and to Longatico and a couple of other small districts on the eastern frontier. All that she obtained in exchange was the recognition of the Italian character of Fiume. By a secret clause, however, which soon became public property, Porto Ba- ros, an integral part of the Fiume port system, was practically promised to Yugoslavia. The Rapallo Treaty was ratified by the Prince Regent of Serbia on Nov. 22, by the Italian Chamber < the 27th (263 votes in favour, 14 against and 50 abstentions), by the Senate on Dec. 17 by 215 in favour and 29 against; 87 senator signed a statement that they accepted the treaty, but declare that it left the Adriatic defence problem unsolved and create difficult conditions for Fiume and Zara. The treaty became lav on the iQth and ratifications were exchanged on Feb. 2 1921. Italy thus acquired 9,200 sq. km. with 948,768 inhabitants.

There still remained the question of D'Annunzio. He refused to recognize the validity of the treaty, because he disapprove of the cession of Dalmatia and of the frontiers assigned to Fiume: as the latter had not been a party to the treaty, he considered himself free to disregard it. He sent detachments of his legionari to Castua, Veglia and Arbe at attempted to invade Dalmatia. But the Government wa determined to enforce the treaty, and, after protracted bu fruitless negotiations with D'Annunzio, it established a blocka round Fiume. D'Annunzio again tried to tamper with the loyalt of the blockading troops and seamen, and succeeded in inducin the crews of two destroyers and two torpedo boats to arrest their officers and go over to the Fiumani; the same thing happene with the crews of two armoured cars. Many of D'Annunzio's followers, however, including Gen. Ceccherini and Prof. Panta leoni, abandoned him. On Dec. 23, D'Annunzio having refused to obey Gen. Caviglia's summons to submit,' operations of a mor serious character were begun. There was some fighting tha day and the two following days, and on the 3oth D'Annunzio authorized his plenipotentiaries, Sig. Giganti, mayor of Fiume, and his war minister, to accept the conditions imposed by Gen Caviglia. The town was to be placed under the authority of th municipal council and order maintained by local volunteer D'Annunzio's legionari to be disarmed and to leave the town, and the Italian soldiers who had deserted to D'Annunzio to be par- doned and sent back to their units, except those who had deserte after the Rapallo Treaty these were arrested and courtmar- tialled. Italian carabinieri would enter Fiume to assist th local levies until after the elections to the Constituent Assembly. D'Annunzio himself left Fiume on Jan. 18 1921. The end of i Fiume adventure was received with a feeling of relief by

1 The negotiations at Rapallo and those leading up to that meetin and immediately following it (May n 1920 to Feb. 2 1921) are set forth in a " Green Book " published by the Italian Foreign Office ( June 20 1921.