1. Referring to Diagram 9, pin handle ends to bag front and back 1-1⁄4" in from side edges. Attach handles, stitching through all layers a scant 1⁄4" from edges.
2. With right sides together, insert bag body inside bag lining; the handles should be between the bag and lining. Align raw edges and pleats. Stitch together top edges of bag body and lining, backstitching over each handle for reinforcement.
3. Turn bag and lining right side out through opening in lining; then pull the lining out of the bag. Machine-stitch opening in lining closed.
4. Insert lining back into bag and press top edge. Topstitch 1⁄4" from top edge to complete bag.