The Peace Conference came to naught and hostilities were resumed on February 14, 1913, because of the impossibility of agreement between the allies and Turks on three important points:  the status of Adrianople, the disposal of the Aegean islands, and the payment of an indemnity by Turkey.  Bulgaria and Turkey both maintained that Adrianople was essential to their national safety.  Moreover, its possession by Bulgaria was absolutely necessary were she to secure the hegemony in the Balkans at which she aimed.  On the other hand, to the Turks, Adrianople is a sacred city around which cluster the most glorious memories of their race.  Thus they would yield it only as a last necessity.  The ambassadorial conference, anxious to bring to an end a war which was threatening to embroil Austria-Hungary and Russia and desirous also to make the settlement permanent, had already on January 17th in its collective note to the Porte unavailingly recommended to the Porte the cession of Adrianople to the Balkan States.

The question of the Aegean islands presented similar difficulties.  They are inhabited almost exclusively by Greeks who demand to be united to the mother country; but Turkey insisted that the possession of some of them (e.g., Imbros, Tenedos, and Lemnos) was necessary to her for the protection of the Dardanelles, since they command the entrance to the straits, while others (e.g., Chios and Mitylene) are part of Asiatic Turkey.  The Greeks asserted that to leave any of them to Turkey would cause constant unrest in Greece, and subsequent uprising against Turkey, thus merely repeating the history of Crete.  Moreover, the Greeks maintained that they must have the disputed islands because they are the only large and profitable ones; but they expressed a willingness to neutralize them so that the integrity of the Dardanelles would not be endangered.  The difficulty was complicated by the retention of a number of the islands by Italy until Turkey should fulfil all the provisions of the Treaty of Lausanne arising from the Tripolitan war.  The Greeks asserted that their fleet would have taken all the islands except for the Italian occupation.  Moreover, they are suspicious of Italian intentions, especially with regard to Rhodes.  The ambassadorial conference in its collective note to the Porte had advised the Porte “to leave to the Powers the task of deciding upon the fate of the islands of the Aegean Sea and the Powers would arrange a settlement of the question which will exclude all menace to the security of Turkey.”

The third question in dispute concerned a money indemnity.  The war had been a fearful drain upon the resources of the allies.  They were determined not to share any of the Ottoman debt and to compel Turkey, if possible, to bear the financial burden of the war.  But to yield to this demand would absolutely destroy Turkish credit.  This would result in the financial ruin of many of the subjects of the great Powers.  Hence this demand of the allies met with scant favor in the ambassadorial conference.