BASIS FOR DISCUSSION.

From CAPT. D. H. LOCH. CONSTANTINOPLE, Wednesday (3.0 p.m.). The first official news regarding the Mudania Conference reached the British headquarters about five o’clock this morning. It was to the following effect:

The Conference at Mudania, which started at fifteen o’clock (three p.m.) on Tuesday, proceeded satisfactorily. Ismet Pasha has reissued orders to the Nationalist troops to avoid all contact. The Nationalists have accepted the Allied Note in principle. The Greek General Mazarakis is expected to arrive at Mudania to-day.

The Turkish cavalry which was encircling closely our position at Chanak has been withdrawn a short distance, and this situation is now confirmed. It would seem, therefore, that the request made by General Harington in his note to Kemal Pasha at the end of last week has been complied with.

There is a good deal of speculation as to the attitude of the Greek representatives on the question of the evacuation of Thrace. If they refuse to accept evacuation, this would naturally complicate the situation and might change the face of the problem, inasmuch as the Allies have promised the country to Turkey on certain conditions. But it is much to be hoped that the arguments for the adoption of a reasonable attitude will prevail.