The British and French could not for a time believe that the Turks were in earnest. It was preposterous to suppose that the British would give up the Mosul region, rich in oil, which had been the underlying motive of the stupendous sacrifices they made to conquer and hold Mesopotamia. The Yemen is a province of Arabia, and the claim to it and to a proprietary right in the Hedjaz Railway was a challenge to the British and French mandates. A plebiscite for Western Thrace and Turkish claims for indemnity against Greece might easily lead to a new Balkan war, with unlimited possibilities; for the Little Entente was already showing itself restless over the failure of the Big Entente delegates to maintain the attitude they had adopted at Mudania, where a strict limitation of the forces Turkey was to be allowed in Thrace had been insisted upon. The most alarming of all the claims of the Turks was their assertion of the right to abrogate the capitulations.

The Mosul oil question seemed to be the primary cause for the break. But that was a difference between Turkey and Great Britain alone, and was not as serious as it appeared on the surface. The British were in possession of Mosul. Having possession, they enjoyed the diplomatic advantage; there was little for Turkey to do but accept the postponement of the decision on this question or its reference to arbitration. The capitulations, on the other hand, brought out a fundamental disagreement, in which all the parties to the conference, including the Americans, were involved.

Mustafa Kemal Pasha telegraphed to Lausanne a statement calculated to appeal to public opinion, in which he referred directly to Mosul, but with the intention of linking Mosul with the capitulations in the perfidious chain he accused the Entente Powers of foregoing in the Treaty of Lausanne to keep Turkey under European exploitation. He said in part:

It is evident that enslavement of a people in order to appropriate the natural resources of their country is contrary, not only to the spirit of the century, but also to the most elementary principles of humanity. We think the oil riches of Mosul, which, moreover, are within the frontiers defined by our National Pact, ought to be exploited freely for the common benefit of that region’s population and all humanity without monopoly of any sort.

There is no doubt of the force of the Turkish appeal against the capitulatory régime and the limitations upon sovereignty established by former concessions. Liberal public opinion has long felt that Turkey, like China and other non-European countries, was a victim of European imperialism. Had it not been for the bloody history of massacres, in which the Kemalists shared, the stand of the Turkish delegation at Lausanne would have met with sympathy and wide support in the British and American press. The capitulations, the Turks asserted, were unjust and a source of weakness, making the rehabilitation of Turkey impossible. How could the new constitutional Government develop a strong and progressive national life so long as foreign business houses and foreigners individually enjoyed extra-territorial privileges and immunity from taxation? Why should the Europeans and Americans possess in Turkey privileges that they would never dream of granting Turks in their countries? At Lausanne Ismet Pasha maintained that territorial questions and problems arising from the pre-war debts could be settled by compromise or arbitration. The minorities question was solving itself. But New Turkey could sign no treaty containing a reaffirmation, under another form, of the humiliating capitulatory principle.

For a month after the Franco-Belgian invasion of the Ruhr had come to complicate the international political situation, the Lausanne Conference continued to debate the question of the future relations of Turkey with business concerns, educational institutions, and individuals of European and American origin in Turkey. On February 7, 1923, Ismet Pasha and the principal members of the Turkish delegation left for Angora. This was the Turkish answer to a warning against renewed haggling that had been put in the form of an ultimatum to the Turks. Lord Curzon testily said:

I hope that Ismet Pasha will not imagine that we are willing to commence the whole procedure over again, and that by further haggling and chaffering he will succeed in upsetting the work of the past three months, and starting a new conference either here or at some other spot. In such a conference I at least could take no part. We are not buying or selling a carpet in an Oriental bazaar, but are dealing with the destinies of nations and the lives of men.

Ambassador Child had urged Ismet Pasha to sign the treaty, and Lord Curzon waited, at great loss of personal dignity, in the hope that the Turks would give in. The Turks did not give in. Ismet Pasha did not take the trouble to say good-by to Lord Curzon. On the day the delegates left Lausanne the French Foreign Office received an alarming report from its consul at Smyrna, begging for war-ships and stating that the evacuation of French subjects was imperative. France acceded to the request and joined Great Britain in sending more troops and war-ships to the Dardanelles and Constantinople.

Mustafa Kemal Pasha retaliated by giving the powers twenty-four hours to withdraw their war-ships from Smyrna Harbor and declaring that in the future no armed vessel of more than a thousand tons could enter Turkish ports. The ultimatum was ignored. The Entente Powers remained at Smyrna; and during the late winter and spring they refused numerous requests to get out of Constantinople, although they did agree to turn over the administration of the city to representatives of the Angora Government. Without waiting for a treaty, the Turks at Constantinople and elsewhere began to enforce the observance of Turkish laws by foreign business houses, educational institutions, missionary enterprises, and individuals. The United States joined the Entente and neutral Powers in protests, which were unheeded.

In the meantime negotiations concerning the treaty had been carried on by notes exchanged between Angora and the Entente chancelleries. They led to no result. In the hope of arriving at some agreement and putting an end to an intolerable situation, which might at any moment lead to a new war in the Near East, the Entente Powers decided to renew the Lausanne Conference, which met again at the end of April.