I couldn't get these photos to load yesterday so here they are today.
I worked the body of the bag as far as the drawstring section. At that point I worked a purl round, a knit round and another purl round. Then three knit rounds.
Then the eyelets. Because I am using sock yarn and fine needles a simple yarn over and decrease would produce too small a hole. So I worked a pair of decreases with 3 yarn overs between them. On the next round when I came to the three yarn overs I knit the first one, dropped the middle one and purled the third one. This makes a good eyelet and is a method I sometimes use for buttonholes. Then I continued, matching the pattern to finish the drawstring section.
Originally I intended to work straight to the top edge, work a turning round and continue forming a facing. However at this point I had what I hope will be a better idea. So, I increased one stitch per eyelet, worked straight for a few rounds and then changed to a 2.5mm needle, continuing straight until I ran out of the green yarn (this bag is using up several sock yarn left-overs.) I then left the stitches on the needle as I have not quite decided how I am going to deal with them at the end.
More when I have made some more progress!