The San Francisco call., 1898-08-18
THE EXPECTED HAPPENS.

n ISPATCHES of yesterday from London an- | , nounce 1t Is understood there that an ex- change of views IS going on between the Governments of Great Britain and Russia and that the negotiations are proceeding ln a con- ciliatory spirit both sides Russia, 1t IS sad declares she has no interest financial otherwise III the Peking- Hankow railway nor desire to acquire any
 While this information is based only upon general report 1t will not require much confirmation to make it credible by the public In fact 1t is just what was expected. The friction between Great Britain and Russia in China may be irritating but it has not yet reached point beyond settlement by judicous dplo- macy. That has been well understood all along by the business world, and accordingly while the rumors ot an impending conflict have been of an alarming nature for some time past nobody has been alarmed. No stock exchange in Europe or America has been affected by the reported imminence of war. F1nan- ciers have gone with their affairs we'll assured of peace they have been any time in the last ten years.
 It would not be surprising to learn that the refusal of the Chinese Government to permit British capital sts to finance the Peking- Hankow road was done on the initiative of the Chinese themselves and not by reason of any prompting from Russia. It is well known that the Empress of China is averse to the British and would exclude them from the empire al together if she could while Ii Hung Chang, who is in power again, has always been desirous of de veloping China by Chinese energy alone and with as
 little outside interference as possible
 Thus the report that the Russian Govern ment had brought about the violation of the agreement between Great Britain and China to the construction of the road was probably false alarm and the Ministers of the Czar may be stating the exact truth when asserting that they have interest in that road and do not desire any
 It would certainly be bad policy for either of the two rivals for supremacy in China to preciptate a with the other at this time Russia requires all her energies and all her capital push forward the Siberian railway. The completion of that vast un- dertalng will be more valuable her than any vic tory she is likely to gain over the British the East and 1t is not probable that her statesmen will engage any war they avoid until that road is completed and possibly until the great canal from the Black Sea to the Baltic shall also be opened.
 Great Britain has just strong reasons as Russia for keeping the peace Despite the reports again and again repeated that Salisbury has been worsted in his diplomatic contests with foreign powers and that British interests have been sacrificed the results show that Great Britain has been gaining right along both ill Asia and in Africa. She has got hold of the best as well as the largest part of Africa and when her railway from the Cape to Cairo is completed she will be in position to virtually dominate the whole in- terior of that continent.
 Her hold upon China, moreover is more potent even now than that of Russia, Germany and France put together She needs years of peace however, to perfect and strengthen her grasp upon what she has attained Her merchants and her hnancers under stand that very well and do her statesmen If, therefore there is to be speedy between Great Britain and Russia it will be the result of something unforeseen, some clash that will rouse the people of the two countries and force the hands of dplo- 7o+icf