For a long time the Greek Government refused to grant any permits to rebuild in the burnt area, because it contemplated a grandiose plan of reconstruction, based on an elaborate scheme which should have made of Salonica a model city, with broad piazze, wide boulevards, imposing public buildings, stately residences, perfect workmen’s dwellings, Rowton houses, an elaborate electric tramway system, electric undergrounds, a university, opera houses, concert halls, and even a forest on the outskirts. But as all this was in the dim and distant future and the inhabitants insisted on being allowed to make some temporary arrangements, permission was finally granted to rebuild the ground floors of the houses, the authorities reserving the right to demolish them without compensation if the general reconstruction plan were carried out. The Salonica merchants did not hesitate to take that risk, and at once began to rebuild. In a few months they had recouped themselves for their losses with a broad margin of profit. One cannot help admiring their persistence, which was amply rewarded. But the problem of general reconstruction has remained unsolved to this day. A wealthy business man told me (and his opinion was confirmed by other experts) that everything depended on the future political status of the city. If it should be endowed with local autonomy and become a free port, the money would easily be found, not only for rebuilding Salonica, but also for the necessary works to prevent the silting up of the harbour; the local Jews, with their own resources and those of their co-religionists abroad, would provide it. But if Salonica were to remain a Greek provincial town, without autonomy, at the mercy of the Athens politicians, no one would invest any capital in it. Indeed, many of the most far-sighted and enterprising business men would leave altogether. I do not know whether this opinion is right, but it certainly represented the conviction of almost the whole of the city’s business community. On August 31st an Italian detachment made a surprise attack on the summit of Hill 1050. The position was captured with brilliant dash, but before the troops could entrench themselves adequately they were exposed to such a terrific artillery and trench-mortar fire that it was not possible to remain, and General Mombelli, in order to avoid useless losses, recalled the detachment. There were no enemy counter-attacks.