The first continuation conference to attract public attention was that of San Remo, whose important decisions in regard to the treaty with Turkey have been commented upon in earlier chapters. It is not generally realized that on the agenda of San Remo the Ottoman Empire occupied third place. The first subject was the execution of the Treaty of Versailles, which was beginning to cause serious difficulties, and the second subject Russian affairs, which had been going very badly, indeed, for the Entente Powers owing to the collapse of counter-revolutionary movements. San Remo marked the first difference of opinion between Great Britain and France on the reparations question. Lloyd George, seconded by Nitti, laid down the thesis to which the British and the Italians (until Mussolini) adhered with more or less consistency in succeeding conferences. The French began to realize that British and Italian interests were going to conflict with their purpose to use reparations claims to prevent the economic rehabilitation of central Europe. France was able to induce the other two powers to agree in principle upon coercive measures against Germany in return for yielding to Lloyd George’s proposals for the Near East and Nitti’s contention that trade relations would have to be resumed with Russia, even though the Soviet did remain in control. At San Remo, also, a secret oil arrangement was concluded between France and Great Britain, against which the United States later protested, and also a new delimitation of spheres of influence in the Near East. On two points, however, the French yielded to the Anglo-Italian view as to method in enforcing the Treaty of Versailles. France agreed to take no punitive steps without consulting her allies, and--very reluctantly--to have German delegates invited to confer with representatives of the Entente on deliveries in kind and other means of making reparations payments. For this purpose it was arranged that the Entente Powers should meet at Hythe on May 15 to discuss the schedule of German payments and should then summon the Germans to come to Spa with definite, concrete proposals for fulfilling their obligations under the treaty.