At the beginning of 1917 Djavid Bey arranged in Berlin for a new loan of three million pounds, simply to enable Turkey to pay her debts to the Krupp firm, as well as the advances made her by the different groups of financiers and the German Minister of Finance. This means, therefore, that, when Germany sends arms to the Turks in order that they may use them to consolidate the Pan-German scheme, she also finds a means of making this consignment of arms serve to entangle the Turks still more hopelessly in the financial web. ‘In Pan-Germanist circles, there has been much discussion of the compensations which Turkey must make to Germany in return for services rendered in the course of the war. It is the unanimous opinion that Germany, without gaining any territorial acquisitions in Turkey, must have controlling rights in the Ottoman Empire, so that the Pera-Galata bridge may be as near Berlin as Constantinople.’ What has taken place in the spheres of finance between Berlin and Constantinople has, by the very nature of things, been duplicated between Berlin and Sofia, though of course in a less pronounced form. Germany, therefore, by means of paper loans based on her own credit, has caused colossal obligations to be assumed by her allies—countries representing vast areas of land: Austria-Hungary with 676,616 square kilometres, Bulgaria with 114,104, and Turkey with 1,792,900, or 2,583,620 square kilometres in all. Now these three countries are precisely the ones which are indispensable to the carrying out of the Central Pan-German ‘Hamburg to the Persian Gulf’ scheme; the loans, therefore, are Pan-Germanist loans. It should be borne in mind, on the other hand, that although Austria-Hungary, Bulgaria, and Turkey are financially encumbered _in their quality of states_, the exploitation of these countries by the Germans is very profitable. Their combined national fortunes were estimated, before the war, at about 269 billion francs. We must realize also that, although these loans granted by Berlin to her allies are merely paper loans, they bind Turkey, Bulgaria, and Austria-Hungary to Germany as closely as debtors can be bound to a creditor. None of these three countries can reasonably hope to get funds after the war from their present adversaries, who, it is certain, will have none too much money for their own needs; and so the financial situation as a whole combines with the enterprise shown by the Berlin General Staff to strengthen the grip which Germany has obtained over her allies through loans.