Turkey also produces a great quantity of leather and hides, and various materials used for tanning: valonia, nut-gall, acacia. It is well known that for centuries the leather trade has been most important in the East, numerous little tanyards are scattered about the country, and there are large leather factories in many important towns. The Young Turks, realising the bright prospects of that trade, had attempted to prohibit the exportation of leathers and hides, and to develop the leather manufacture. During the summer of 1917 the National Ottoman Bank of Credit opened a leather factory at Smyrna, and appointed an Austrian tanner as its director. Owing to recent events, it has been impossible to establish other leather factories, but this scheme is likely to be resumed with the protection of the Government, for the leather industry may become one of the chief national industries. * * * * * The Peace Conference, by postponing the solution of the Turkish problem indefinitely, endangered not only French interests in Turkey, but the condition of Eastern Europe. The consequences of such a policy soon became obvious, and at the beginning of August it was reported that a strong Unionist agitation had started. The Cabinet of Damad Ferid Pasha, after the answer given by the Entente to the delegation he presided over, was discredited, as it could not even give the main features of the forthcoming peace, or state an approximate date for its conclusion. He could have remained in office only if the Allies had supported him by quickly solving the Turkish problem. Besides, he soon lost all control over the events that hurried on. In the first days of summer, the former groups of Young Turks were reorganised in Asia Minor; some congresses of supporters of the Union and Progress Committee, who made no secret of their determination not to submit to the decisions that the Versailles Congress was likely to take later on, were held at Erzerum, Sivas, and Amasia, and openly supported motions of rebellion against the Government. At the same time the Turkish Army was being quickly reorganised, outside the Government’s control, under the leadership of Mustafa Kemal and Reouf Bey. An openly nationalist, or rather national, movement asserted itself, which publicly protested both against the restoration of the old régime and the dismemberment of Turkey. Even in Constantinople the Unionist Committee carried on an unrestrained propaganda and plotted to overthrow Damad Ferid Pasha and put in his place Izzet Pasha, a shrewd man, who had signed the armistice with the Allies, and favoured a policy of compromise.