The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-12-24
JAPAN HAS DRAWN LINE;
RUSSIA MUST TOE MARK
Government of the Mikado Deter
mined Not to Yield in Matters
of Vital Interest.
RUPTURE IS PROBABLE
Next Exchange of Notes May Re-
suit in Loosening the Dogs of
War in the Far East.

PEKING. Dec 23-The optimistic feel
ings in some quarters concerning war be-
tween Japan and Russia are not shared by
the other diplomats at Picking, whose knowl-
edge of the present situation Of affairs en-
titles their opinion to the highest consid-
Grafton. 1t is positively known that the
Japanese government has drawn the line
for the settlement, beyond which it will not
make any material concessions, and that
she is. determined to fight before yielding
what she considers to be her vital inter-
ests. 1t is believed that unless Russia con-
cedes important points another exchange
Of notes will precipitate matters.
1t is believed that Japan will refuse any
arrangement holding in allegiance the ques-
ton of the evacuation of Manchuria. which
was one of the terms of the proposed ar
rangements recently announced from St
Petersburg and which it is now supposed
was intended by the Russian government
a 'feeler. This would be a violation
of expressed pledges given to Japan and
China Minister Uchda is reported to
have said he would be obliged to resign his
post in the event of such an agreement.
The most dangerous factors in the situa-
ton are the confidence of the Russian off,
mean an easy victory for Russia and the
challenging tone of the Russian officials and
newspapers.
The two members of the diplomatic corps
at the Chinese capital whose opinions re-
garding the present critical condition of
affairs are probably most valuable are Jap
anese Minister Uchda and Sir Ernest Ma
son Satowa, who, for over thirty years
has represented the British government at
Picking. 1t is no secret that both see only
faint prospect of war being averted.
Minister Satowa was connected with the
British diplomatic service in Japan for a
quarter of a century. He is one OF the
greatest living authorities on~Japahese his
tory and literature and is in constant COM
munication with the foremost statesmen of
Japan. He is quoted saying that anyone
who imagines that Japan will not fight for
what she conceives to be her greatest in
terests. does not know the Japanese people.
Minister Uchida is an adherent of the
Young Japan party and has always ad-
vocated war, If necessary, to secure the
evacuation of Manchuria.
Sir Robert Hart, director of Chinese i'm
perial maritime customs said to-day that
he feared China would be the chief sufferer
from the war, should it occur, for she may
be ground between the two millstOnes
The decadence of the Chinese government
has never been more completely displayed
than In these times when her ministers go
from legation to legation imploring other
thought Of China's helping herself. There
is absolutely no strong man among the rul-
Tseng, or Ii Hung Chang-all are venerable
conservatives like Prince Ching
WI Tingfang, the well known ex-rninis-
ter TO the United States, tells his official
friends that he despairs of China's future.
II see no hope" he says, for China. The
partition of the empire, sooner or later, is
inevitable" He is disguised with official
life at Picking. and proposes to resign his
present position at the first opportunity. WI
Tingfang's experience is that of the ma
jority of enlightened Chinese officials. He
did good work in negotiating the commercial
treaties recently signed, and was summoned
to Picking and given the vice presidency of
the Board of Commerce. The president of
this important board is Prince Tsai Chen, a
youth, whose only qualification is the fact
that he took hurried trip around the world
when he represented China at the corona
ton of King Edward Yet he vetOes most
of the practical proposals made by the other
members OF the board
The new Chinese Board of Commerce has
promulgated the railway laws compiled by
WI T1ngfang, former minister to Washing
ton and now vice president of the board, of
which Prince Tsai Chen, son of Prince
lated to materially cripple the borrowing
restrict the control of the railways to the
Chinese security holders. The regulations
further restrict the holding Of shares by
foreigners to a maximum of 80 per cent. and
prevent the companies from borrowing on
land values. limiting the power of mortgage
to the machinery and buildings. The rail-
way companies must apply for concessions
to both the new Board Of Commerce and the
Foreign Office.