The Allies' demands are rejected by the Greek Government; an Allied force which is landed at the Piræus is attacked by Greek troops. Dec. 3 (Sun.) Roumania:--A German victory in the Arges Valley; the Roumanian armies are driven back all along the line. The Serbians advance and carry high ground north-east of Monastir. A German submarine bombards Funchal (Madeira). Dec. 4 (Mon.) The Serbians continue to advance north-east of Monastir; they capture Stravina. The British liner _Caledonia_ is sunk by a submarine in the Mediterranean. Dec. 5 (Tues.) Resignation of Mr. Asquith, British Prime Minister. Dec. 6 (Wed.) Roumania:--Bucharest and Ploesti are captured by the Germans. Greece:--The Royalist party in Athens regains control of the posts and telegraphs. Dec. 7 (Thur.) Mr. Lloyd George becomes British Prime Minister. Roumania:--The German successes continue; many prisoners are captured. Dec. 8 (Fri.) A blockade of Greece is proclaimed by the Allies, as from this date, until adequate reparation shall be made for recent outrages. Dec. 10 (Sun.) The formation of the new British Cabinet is announced. Mr. Balfour becomes Foreign Secretary, Lord Derby Secretary for War, Sir E. Carson First Lord of the Admiralty, Mr. Chamberlain Secretary for India, Lord Devonport Food Controller; Minister of Munitions, Dr. Addison; Minister of Blockade, Lord R. Cecil (see May 26, 1915, and July 17, 1917). Dec. 11 (Mon.) An Allied Note is presented to Greece demanding the demobilisation of the Greek troops. The Roumanian retreat continues: enemy forces are 20 miles east of Ploesti. The Italian battleship _Regina Margherita_ is sunk by a mine in the Adriatic. A British air-raid on Zeebrugge. Dec. 12 (Tues.) The German Chancellor announces that Germany has made proposals for peace. General Nivelle succeeds General Joffre in command of the armies in the field on the Western Front. Vice-Admiral Gauchet succeeds Admiral du Fournet in command of the Allied Fleets in the Mediterranean. Dec. 13 (Wed.) Mesopotamia:--A new offensive against Kut-el-Amara is launched by the British forces under General Sir Stanley Maude. Dec. 14 (Thur.) The Allies present an ultimatum to Greece demanding the withdrawal of all Greek forces from Thessaly. The Roumanians evacuate Buzeu. The empty British transport _Russia_ is sunk by a submarine. Dec. 15 (Fri.) The Greek Government accepts the ultimatum of the Allies. A brilliant French advance at Verdun: important positions and 7500 prisoners are taken. East Africa:--A British victory near Kibata. Dec. 16 (Sat.) The French advance at Verdun continues. Dec. 18 (Mon.) Germany's peace proposals are received by the British Foreign Office (see Dec. 12 and 30). The end of the French offensive at Verdun (see Dec. 15), over 11,000 prisoners and 115 guns having been captured and much ground gained.