Well, it was too late for the Turks. Mutinies and the subsequent rebellion in the capital kicked them out of the war. When a country surrenders, its army is entirely disbanded, and its territory is open for movement, functioning the same as friendly territory in terms of logistics. Specifically, the UK will now receive 10 Economic Points from Turkey as war indemnities. Moreover, all Entente members receive 6 NW points, while all members of the CP will suffer a 4-point NW hit. But the worst part is that a considerable number of Russian and British units are now freed up in Palestine and the Caucasus.

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France initiated peace negotiations. I immediately said "no," thinking I was acting on behalf of Austria-Hungary (which would make the decision meaningless in a 2-player campaign—why would I let my ally go?). But after checking the manual, it appears I was choosing whether Germany would take part in the negotiations. Because I said "no," Austria-Hungary will negotiate alone and can conclude peace with the Entente powers. If I had said "yes," it could still conclude the same way, but with a lower chance. So it seems to make sense for Germany to join the negotiations, but then there is a risk that the offer is actually a bluff and would cost me some NW points. I can also invite Russia to the table the same way (i.e., as a bluff or sincerely). Here is some info from the manual:
"By playing Political Action “Negotiate Peace”, you may propose peace negotiations to the opposite side. More precisely, you attempt to negotiate with Russia (if you are Central Powers) or with Austria-Hungary (if you are Entente), to conclude a Separate peace. All the powers on your side must choose this action simultaneously (except Turkey). Your proposal may be sincere or it may be a bluff. This choice is secret.
If your proposal is sincere, a Peace Test is rolled. The peace will be accepted or rejected irrespective of what your opponent thinks or wants (yet, he may influence this decision).
If your proposal is a bluff, no Peace Test is executed. The real purpose was to “trap” the enemy, and make him lose NW.
NB: On the Western Front, no Separate peace is possible, only an unconditional surrender.
If your opponent answers no, the United States level goes up by 1 (if you are Central Powers) or down by 1 (if you are Entente)."
And here are the rolls for Russia:
-2 the opponent answered “yes” (France and Britain take part in the
negotiations)
-1 if 2+ Russian cities are occupied.
[This does not make sense to me, why would occupying Russian cities increase possibility of the rejection? Shouldn't it be the opposite?]
-1 Allied Grand Offensive on the French Front, at least 2 rounds
-1 per additional turn, starting with the 4th turn of the Allied
Offensive
-1 the Western Powers have given 40 EP to Russia (current year)
-1 city or former fortress (German or Austrian) controlled by Russia
+/-? Russian Parliament (reverse the value: -1 becomes +1, etc)
+1 Russian defeat during a German Grand Offensive on the Eastern
Front
+1 Petrograd or Paris controlled by the German player (+2 both)
+1 Russia’s regime is M or -2 if Kornilov leads Russia
+1 Sixte de Bourbon-Parme event has occured
And for Austria-Hungary:
-2 the opponent answered “yes” (Germany is part of the
negotiations)
-1 if 2+ Austrian cities are occupied.
[Same concern here]
-1 Entente made promises to Italy (Trentin and Istria) or to Romania
(Transylvania) (-2 for both)
-1 Masaryk Czech Committee is recognized by Entente (event #46)
or the Wilson proposal is in effect (-2 for both)
-2 German or Austrian victory on the Russian Front, or on the Italian
Front (if Italy in Entente)
-1 Germany has given 60 EP to Austria-Hungary (current year)
+/-? Austrian Parliament (reverse the value: -1 becomes +1, etc)
+1 Austrian defeat during a Russian or Italian Grand Offensive
+1 Russia has signed the peace (ignore this modifier if the Masaryk
Committee has been recognized)
+1 Italy is not hostile to Central Powers (either at peace or on Central
Powers’ side)
+2 Budapest or Vienna occupied by Russia (+4 both)
+3 Sixte de Bourbon-Parme event (#57)

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It was a busy turn in terms of diplomacy. The USA joins the war! This is certainly troubling news, but it will take quite some time before we face the Americans in the West, since their army is rather weak initially. Hopefully, the war will be won by then.

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