The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-08-16

for the point has been made clear that the
discussion of the intsned ships was matter
involving the consent Of the United States
and China.
In spite Of the understanding among
many that the Japanese conditions repre-
sented an lrreducible minimum Of de-
mands. little doubt has been felt by those
who have followed the peace developments
intelllgently that Japan had made her terrna
~ the severest possible character with the
full intention Of modifying them In order
to effect compromise. That this Idea was
entirely correct is demonstrated by the
knowledge obtained this evening Of Russia's
success In combating Japan's insistence
upon the adoption Of article Q.
From what leaked out upon this point
there is reason TO suppose that Baron Ko-
mura and Mr.. Takahira receded from the
position they had Assumed. In other words,
granting that It was the matter Of the trans
fer to Japan OF interned Russian ships which
resulted In success for the Cars emissaries,
the disposition Of these ships upon the CON-
clusion Of the war will be made only as the
result OF an international conference to
which the United States and China, as well
as Russia and Japan, will be parties.
RESULTS TO DATE.
It Is useless In the face OF the secrecy
that is being displayed by both parties to
the conference to attempt to give In regular
order the various points upon which the
pleuipotentiahes have reached a conclu-
sion. But 1t appears probable that the
adjustment thus far has embraced the
following items:
Russia agrees to recognize the prepon-
deratins infiuence Of Japan In Corea.
Japan consents TO allow Russia the ad-
vantage Of most favored nation treatment
In Corea.
Russia and Japan agree to respect the
territorial and political integrity Of China.
Russia and Japan agree TO withdraw all
their military forces from Chinese territory.
Russia agrees to surrender to Japan her
leases Of Port Arthur and the Lsotung
Peninsula. Upon this last point, however.
there is no definite ASSURANCE that the dis
position indicated has been made.
RAILWAY cRssIoN NOT DISCUSSED.
From Q high source Of authority 1t was
learned, after the conclusion Of the afternoon
session Of the ENJOYS, that the Japanese
demand for the cession to the Toxic Gov
eminent OF the Russian Railway in Man.
churia. between Port Arthur and Hardin,
had not been discussed In the conference.
This question, regarded by many as the
rock upon which the effort to bring about
peace will 20 to pieces. viii probably be
considered synohronously with the matter
Of indemnity. 1t has been Indicated more
than once In TIE Suns dispatches from
Portsmouth that the disposition OF the
railway Is intimately associated In the
Russian mind with the indemnity problem.
Those whose opinions are entitled to re-
spect have felt no doubt that the Ports
mouth conference would reach happy
conclusion II . means could be found OF
satisfying Jspan's demands without COM
polling Russia to pay humiliating cash
price, or at most, q comparatively small
amount Of cash. for the promise by her
opponent not to prosecute the war.
The suggestion has been made-and
made in a quarter where some intimate
knowledge Of Russia's attitude is to be
found-that II Japan would deduct from
the amount Of indemnity demanded an
amount appro1imating high percentage
OF the railways actual value the means
might be found of reaching the basis for
q treaty Of peace. 1t Is this which makes
the railway question Of such vital impor-
lance in the negotiations. This indicates
why the plenipotentisries have been In no
hurry to reach It.
The ENJOYS. it may now be stated, have
agreed not to take up the japanese demands
for the payment Of indemnity and the ces-
sion OF territory until the very last. In
the meantime every effort will be made
to adjust what may be termed the minor
points OF difference. The great battle
Of diplomacy will come when the road has
been cleared Of all obstacles except those
which more particularly involve the honor,
pride and dignity-snd perhaps 1t should
be said the purse-of Russia.
The first session to-day lasted from
$50 until 1880 and the second, which was
begun at 8 o'clock. was prolonged until
after Q.
RUSSIA Nor ENCOURAGED.