New-York tribune., 1905-08-25
PESSINISM REIGNS.
Portsmouth Feels Negotiations Al
most HOPELESS.

Prom a Special Correspondent OF The Triouns)
Portsmouth. n. H, Aug. 24--Pessimism
reigns almost supreme in Portsmouth Tonight
Even the Japanese ENJOYS profess TO have
abandoned all hope of a successful issue OF the
negotiations Minister Lamsdorns ofhclaI an
nouncement that Russia will not pay a kopeek
of indemnity no matter what the payment Is
termed is regarded the cOup-de-grace or me
negotiations and it is even held in some quar-
ters that this announcement, following so
closely the audience granted TO Ambassador
Never is intended as intimation TO the Presl-
dent that further intervention by him Is useless
A pou of those posted on the sltuauou WOuii
doubtless reveal a large majority holding the
opinion that Saturday or Monday VIII Witness
the conclusion of the conference.
II is obvious. however, that this Is precisely
the view which the diplomats desire 10 nave
entertained and. therefore. the question nat
uraIly arises whether ii is the tact OF ""eIiei
the diplomats are still "blufhng.' Incidentally
Japan has permitted it to leak out that she
has lust placed orders with the Krupps 1or
armament and guns TO the value OF S2.z0oUpV'
this news being coincident with the announce
ment of the Russian Foreign Office. IL Is re-
called in this connection. that just week ago
the Russians permitted it TO become known thaI
NJ. Witte had reserved a stateroom on lasI
Tuesdays steamer and Immediately the Japan
ese countered by ordering that their sa1e De
moved from the hotel
There has been no session Of the conference
today and there has been time to analyze the,
Japanese proposals which were formally SUP
mitted yesterday. Japan at first demanded that
Russia defray the entire cost of the war ana
Weld all title to the island of Saghalien- The
former demand was made "in principle and
contained no specific amount. but it was the ex-
Of Ian plaCe the cost at dp-
nroximateIy 81 900 100000 Yesterday, japan
offered 10 accept S6OO.OOO.OOO and One-half OF
the island of Saghalien In other words. Japan
has receded from her demand for indemnity
called reimbursement-4O per cent and from
her demand for SaghaIien 30 per cent. These
concessions NJ. witte pronounced all old.
changed only in form.
1t is probable that intelligent public will
take issue with NJ. Witte on this point.
Moreover Japan. more or less formally, but
not the less certainly. permitted it to be known
that Russia's acceptance of these terms would
be met by Japan with an, absolute concession
of Articles X and XI. providing for the limitation
OF Russa's naval forces on the Pacific and the
surrender TO Japan of certain interned ships.
Incidentally and with the obvious purpose of
sparing Russia's feelings. Japan changed the
form of her demand for the cost OF the war.
making a sum 40 per cent less than the purchase
price OF Saghalien.
These radical concessions on the part of japan.
Russia has met with emphatic negative
Russia 1t is declared. will not pay one cent of
indemnity no matter what name be given it.
Immediately the diplomats throw up their hands
and exclaim. "Cest 1nis."
But is IT? Possibly, very possibly. but there
is still further suggestion in Russia's attitude.
The Foreign Office has permitted it to be known
III will only x-iAI nOiQt or
indemnity all her other demands win be granted.
In other words Russia offers 10 Telinquish 20
japan the northern half of Saghalien. which
Japan has already placed an estimated value OF
$500 100000 in lieu OF an indemnity in any
form.
II may be argued that II was only through
courtesy that Japan placed so high valuation
on the northern part OF Saghalien, and that is
true but IL does not alter the fact that such
valuation has been placed upon it, Russia has
offered to reimburse Japan for the maintenance
OF Russian prisoners and will doubtless pay
literally for their keep and the medical atten-
tion they have received. That is only small
item 1t is true but II the negotiations continue
IL may prove factor.
The report that Russia will grant all or
Japan's demands II indemnity in any form Is
eliminated. comes from ST. Petersburg AS
suning IL TO be accurate. what would Japan
gain by accepting the terms. modified to