The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1905-08-12
(By the Associated Press }

(By the Associated Press.)
Portsmouth, N. H., August TO-
Reimbursement for the expenses sus-
tanned i'm the prosecution of the war
and the cessiOn of the Island of SAX
halin constitute the main feature of
the peace conditions handed by Bal
ron Komura to Mr.. White at the con-
clusion of the morning session of the
plenipotentiaries in the general stores
building of the Portsmouth navy yard.
The word indemnity is carefully
avoided, the term employed being re
endorsement for the cost Of the war
No sum is fixed, the amount being
distinctly adjourned for natural ad-
JuStment between the two countries
after the Japanese expenditure has
been ascertained. These are the two
all important conditions and those
which the Russian plenipotentiaries
find absolutely unacceptable.
Unacceptable as they are, however,
it can be stated that these two prin
cIpal conditions did not come as a
surprise to the Russian plenipoten-
tiarles. The friendly fashion in which
Baron komura explained the condi-
lion before handing them to Mr.. Wit
tie, and the evidence of the use of the
word Indemnity in the presentation
of Japan's bill for the cost of the
war without fixing d sum leave the
way open for negotiations and consti-
tutes the main hope that a final
agreement is possible. Certainly the
danger of a Sudden rupture no mat
ter what the ultimate result may be,
is precluded by today's developments
The Other Demands
The other terms are substantially
llo al nafn cd nd r N
one or perhaps two exceptions, could
probably be entertained as the basis of
negotiation. They include the follow
ing:
The cession of the Russian leases to
the Li&e Tung Peninsula comprising
Port Arthur and Dalny. The eyacua-
ton of the entire province of Manchu-
Ina. the retrO-ceSSiOn to China of any
privileges Russia may have in the
province. and the recognition by Rus
STA of the principle of the 'Open door,"
The cessiOn to Japan of the Chinese
Eastern Railroad below Hardin. the
main line through Northern Manchu-
ria to VIadivostOck to remain Rus
sian property. The recognition OF the
Japanese prOtectOrate over Korea.
The grant of fishing rights to Japan
i'm the waters of the Siberian littOral
nOrthward from VladivOstOck to the
Behring Sea-. The REIMBURSEMENT to
Japan of the Russian warshlps in
termed in neutral ports. Finally
limitation upon the naval strength OF
Russia i'm Far Eastern waters.
AS whole the terms are regarded
as exceedingly hard by the Russians.
In addition to the two principal con-
ditions which cannot be accepted UNI
der Mr. Whites instructions those re-
lating to the limiting of RusSia'S naval
power in the Far East and the grant
ing of fishing rights upon the Russian
Iittoral are considered particularly Of
fensve to the amour propre of
their country and Of such a humili-
ating character as to be inadmlss-
IDLE.
They Are Called the Gar.
The Japanese on the contrary, as
Baron Komura announced at the con-
ference today, consider them moder-
ate. contendinS that they only repre-
sent a fair compensation for the eX-
penses of the war and the victories
they have achieved on land and sea-
their sole purpose being to attain their
objects for which they have fought,
the spoils claimed being only such as
they are legitimately entitled to as the
result of their military and naval sue
cCsseS.
The Russian penipotentiarles as
their hands called in the five expert
delegates attached to the missions ana
spent the whole afternoon in the con-
alteration of the terms. Meantime
the conditions had been placed in CT
rher and cabled to the Car with Nj.
Whites personal recommendations.
1t is hoped that a reply will be re-
ceived from the Emperor tomorrow,
in which case Mr.. Witte expects to
have the Russian response ready by
Saturday, nut it is not unlikely that
Saturday being the frSt anniversary
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ifest not the slightest annoyance at the
prospect of a few days delay. They
realize how serious the issue is and
are perfectly willing to give their Rus
sian colleagues ample time Tor con-
sjderation Mr. White and Baron Ros-
en- had yesterday accepted an invita-.
ton TO dine with Assistant Secretary OF
State PIERCE and in spite OF their ar
duous labors at the navy yard TO-DAY
they kept The engagement. AT y
o'clock. upon their return to then
quarters in the hotel they plunged
gain into their work and the neh''
in their rooms burned until long artei
midnight.
Much excitement prevailed aoou'
the hotel the corridors of which were
tnronged with summer tourists ana
newspaper correspondents, all discuss