The Bemidji daily pioneer. [volume] (Bemidji, Minn.) 1904-1971, 1905-08-17
ARTICLE z OF USSO-JAPANESE
PEACE TREATY CAUSES PRO.
LONGED DISCUSSION.
RUSSIA'S POSITION ABLY DEFENDED
ASSERTS PROPERTY is LARGELY
& PRIVATE AND NOT SUBJECT
TO CONVERSATION.

Portsm outh, N. H., Aug. 17.-Both
sessions of the Russo-Japanese peace
conference were occupied entirely in
discussion of article Z, which refers
to the cession of the China Eastern
railroad to China This road runs
south from Harbin to Port Arthur and
Dalny, with q spur to Newchwang,
where it connects with the Shanhai-
kwan-Tientsin road. This article was
conditionally accepted by the Russian
reply, but agreement to it was bound
up with considerations involving the
fate of the whole negotiations. Russia
will not admit the Japanese cOnten-
ton that the road is wholly a govern
ment institution, as all the shares of
the railroad corporation are owned by
the Russo-Chinese bank. The govern
ments interest in the road however,
is not denied, but it is urged that so
far as it is private property it is not
confiscable.
The Russian contention is backed
up by evidence. Mr.. Berg, the. vice
director and attorney of the Russo
Chinese bank, is here to protect the
interests of the bank Nevertheless,
in the long run, Russia, it can be re-
garded as certain, is prepared to give
up the road, remunerating the Russo
ho nj wi "a
loss Of Port Arthur and Dalny and
the evacuation of Manchuria it's raison
Ge etre for strategic and military pur-
poses ceases. Its surrender to China,
however, involves a large monetary
profit for Japan. which can properly
claim remuneration from China for
the restoration Of the road, the re-
building Of the bridges and the chang
ing in the gauge. 1t will be for China
and Japan to arrange this, but how
ever adjusted the money which Japan
will obtain might be a partial ere
muneration' for the cost of the war
which she demands from Russia and
constitutes, perhaps, the line OF ulti,
mate compromise if treaty eventually
is signed. 1t is quite likely, there
fore that agreement on the article
after discussion will be held in abey.
ance until later and will be settled in
the final exchange of views.
Crisis Almost at Hand.
From the very nature of the articles
yet remaining to be considered it is
rortoi,, thot tho cricic in Tho poootio
tions is almost at hand. All that re.
mains seems more or less mutually
interdependent. If Japan, as is gen.
orally believed, is ready to yield on
the question of limiting Russia's sea
power in the Far East and the sur
render of the interned warships 1t
would only be in return for satisfac-
tory agreement on the issues Of SAX.
halin and indemnity.
The five articles so far agreed upon
by the peace ENJOYS are as follows:
First-Recognition of Japan's .'pre
ponderating influence in Korea, etc
Second-Mutual obligation to evacu
ate Manchuria, Russia to retrocede to
China all special privileges, etc.
Third-Japanese obligations to re.
store the sovereignty and administra
tion Of China in Manchuria
Fourth-Mutual obligations to re-
spect the territorial and administra
tive integrity of China and the prin.
ciple of the open door,
Sixth-The surrender of the Rus
sian leases to the Liaotung peninsula
including Port Arthur, Dalny and the
Blonde and Elliott islands.
It is known that the japanese peace
plenlpotentiaries have sent to Wash
lngton for parchment paper such as is
used in the engrossment of treaties.
This is regarded as significant.