The San Francisco call., 1905-08-25
His Peace Scheme
Is Altered by
KOnura.
Figures Inserted That
. Caused Break in
Negotiations.
Chief Executive Is Diligently
at Work Repairing the
Damage Done.

PORTSMOUTH, n. H., Aug. 24.-The
prospects of peace seem desperate, but
they are not hopeless, despite the pre-
vaflfng pessimfsm. There is still a
chance, and the forces working for
peace are continuing their IabOrs. The
President failed twice. but he is fight
Ing on. The result of EmbassadOr
Meyers audience at PeterhOf yesterday
Nas unsatisfactory, but at least il was
not a rebuff. 1t left the door open,
and within a few hours after the re-
ceipt al Oyster Bay of MT. Meyers ac-
count of his audience the President
had sent a new appeal, through MI. de
Mitte, who received IL from Mr.. Peirce
at O'Clock this morning.
The Emperor had already, in effect,
declined the proposed compromise Of
fered by Japan. He had refused it be-
cause. under q disguise. Japan Of
fered TO withdraw an article asking for
remun Grafton for the cost OF the war, on
condition that Russia repurchase from
the military possession Of Japan the
northern portion of Saghaiien at a
f1xet price of / ,200. .0Oa.0o0. yen-.the es-
tizHssred -frsIis de gueTre-
Every message received from Peter
hof. including those that came early to-
day. was infeXible upon that point.
Had Japan not inserted the sum, had
that been left for future adjustment,
the proposition undoubtedly would
have proved more palatable And the
divergence in the compromise, as sug-
gested by the President and as offered
by Japan at the conference. which was
mentioned in these dispatches last
night, touched this very point.
COMPROMISE TAMPERED WITH.
The President did not suggest a price
or the fixing of a price, and it is be-
lieved, although this cannot be al
drmed that his latest effort was to Sc
cure the consent Of the Emperor to
agree to accept the Japanese PROPOSE
tion with the amount subject to fur-
ther adjustment by an arbitration board
or otherwise.
According to the Japanese. Mr.. de
WHITE has already offered TO divide Sag
halien. If the repurchase Of Saghahen
was based upon a purchasaple basis, ine
following lines from the authorized state
ment of the Russian position given last
night should be borne in mind:
"AI that Japan does is to join the ques-
ton Of Saghalien with that of cash
pavment and to insist upon war costs
under the name of purchase money. The
transaction is fictitious and the termin-
ology misleading If what is proposed
he in truth a purchase and sale. 1t should
be treated as such, and, therefore, should
Russia decline to buy the territory, Ja-
pan S0OulQ keep II anu SoASiUoS PS"S~
on the basis of the concessions already
made"
Japan MAY MAKE CONCESSION.
Japan. it is believed would make the
further concessions suggested, If En-
peror Nicholas would commit himself to
this solution. This statement is based
on the words of the japanese authority
most competent to speak When asked
II II was correct, as reported, that the
that all hope was over, he replied:
no. we have not declared that our
proposition of Wednesday was our ire
ducible minimum We are not assuming
a threatening attitude. That is not the
way to make peace.
But the plenipotentiaries themselves no
longer control on either side. The ne
gotsst,ons have passed from their hands
TO their principals at Peterhof and Toxic.
KAISER UNDER SUSPICION.
Most persistently the report Continues
n be circulated here that Emperor VIII
liam has been one Of the main obstacles
10 peace: thlt. while ostensibly in SYM
pathy with the Presidents efforts. he is
advising Emperor Nicholas not TO yield
The foundation for the belief is the fact,
which appears fully confirmed, that MI
de Whites instructions were made more
imperative and intransigeant upon the
question of indemnity and cession of
territory after the Kaiser's interview
with the Russian Emperor in the Gulf of
Finland. Beyond this, no evidence is Of
fered.
It IS significant that Mr.. de Witte made
IL point TO express his disbelief in the
report from St Petersburg, which caused
CONSERVATION here, that
Count Lamsdorf had authorized Reu-
ter's agent TO declare that Russia under
no circumstances would pay a contribu-
ton. either direct or indirect. or make a
cession of territory whatever. Mr.. de
Witte said he could not imagine that
Count Lamsdorf could have authorized
such a statement without informing him
(de Witte9.