The daily morning journal and courier., 1905-03-14
Official. Washington Led to This Belief by Import
 ant Information.
RUSSIA COMPELLED TO ACT
OYAMA,s MIGHTY BLOW DE-
 CIDES THE QUESTION.

When Czar Calls His Council of War
 To-day He will be Able to Inform
 Them That Japan Will Agree to Peace
 on Reasonable Terms--Port Arthur
 and an Indemnity Among the De-
 mands-High Official Says Rojestven-
 sixy.s Squadron Has Been Recalled.
 Washington, March 1S.-When the czar calls his war council tomorrow he will be able to inform them that Japan will agree to peace on reasonable terms and will promptly name her conditions, provided she receives trustworthy as srrances that they will be seriously considered.
 This the emperor has learned from friendly ehancelleries in Europe, as well as the general terms acceptable to Japan. These, it is stated, include the retention by Japan of Port Arthur, a Japanese protectorate over Korea and an indemnity.
 From a high official the Associated Press hears that Russia has recalled her second Pacific squadron.
 An attache of Russian embassy in Europe is quoted as expressing the be- lief that Kuropatkins recent defeat Wll force Russia to ask for peace.
 Briefly, these were reports current in the diplomatic corps to-day, and as a result of this important information official Washington believes tonight that Russia and Japan are on the verge of peace. If it be true that the second Pacific squadron has been re- called, even the most optimistic of Rus sia's friends admit that this is a strong Indication that Oyama's mighty blow has made for peace.
 Count Cassini, the Russian ambassa- dor, is the notable exception in the group of foreign envoys here.
 However generous the terms which, Japan might offer,n the ambassador said tonight Russian prestige is not among them. That is one thing for which the war will be fought to the end Victory for the Russian arms will alone make for peace. If not at Tfe, Pass, then at Harbin, Russia will assemble another army mightier than before, and with that army she will settle the issue. It may be six months, a year, or perhaps two years. Time will be rio consideration
 At the Japanese legation it is declar- ed that St. Petersburg and not Tokio is the capital from which the world must hope for peace proposals MT. Takahira, the Japanese ministetr, said to-day in the most emphatic manner that Japan had not directly proposed peace. He did not deny that neutral powers through their envoys from time to time had sounded Japan as to the terms on which she would accept peace, but those, he said, necessarily changed with the progress of hostilities. the in- timation being that Russia could have obtained better terms after the fall of Port Arthur than after the capture of Mukden.
 If the Japanese government were as- sured that peace proposals would be considered by Russia, there is authority for the statement that Japan would re- spond immediately. But she will insist that these assurance shall be of the most positive character. Japan's ex- perience in the negotiations preceding the war, it is said, will make her ex- ceedingly cautious in the future. She will insist that such assurances shall come from the Russian government and no tfrom this or that party, or this or that friend of the emperor.
 Officials here expect that by to-mor- TOW St. Petersburg will have fully com prehended the extent of Oyama's vic- tory and then will make known it's de- cision regarding the continuance of the war in the face of Mukden's fall.