The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1905-07-28
1t Will Approximate a
Billion Dollars.
MUST YIELD SAkHALIN
Cede the Liaotung Peninsula, Recog
nize Iapan's Performance in Ko-
rea, Return Manchuria to China.
One Meeting May Settle Ques-
ton as to Peace or War.
(By the Associated Press.)

Washington, July 26.-Whether
there is to be peace in the Far East
or continuance of the war will be
practically decided at the first business
meeting of the Washington conference
which will convene at the navy yard,
Portsmouth, n. H., about August 5tb.
Baron Komura will on that occasion
communicate to M. White, the essen
tails of Japan's peace terms for furth-
er negotiations. This, it is declared.
will not be done in spirit of defiance,
indeed there are many evidences in
the possession of the neutral govern
ments that Japan is coming to the
war conference, not imbued with a
desire to humiliate Russia, but only to
exact terms which will insure a last
ing peace in the Far East and which
will in a measure compensate Japan
for the financial losses in the present
conflict.
1t is known that Japan will demand
an indemnity that will approximately
cover the cost of the war to date. This
was communicated to Russia early
in the preliminary negotiations. The
amount is stifl a secret, but it is based
upon the most careful estimates of
the costs and the war and will be ac-
companied by more or less detailed
statement showing the method by
which the final figures were computed.
1t will not fall far short of one bill
lion dollars, according to advices
reaching here from well Informed
sources.
Besides the indemnities, it is be-
lieved that Japan's other essentials to
the continuance of the negotiations
are the cession to japan of Sakhalin;
of the Lao Tung peninsula; and of
the railway as far as Harbn the
recognition of Japan's predominating
influence in Korea and the return of
Manchuria to China.
If the Russian plenipotentiarieS are
prepared to accept these essentials,
the officials here are confident that
the bases will be laid for negotiations
sure to lead to the signing of the
treaty of Washington bringing peace
in the Far East
The Question of Manchuria.
As for the subjects remaining to
be discussed, a tedious one, it is be-
lieved and one on which Russia will
be disposed to negotiate with the
greatest caution is the program for
the restoration of Manchuria to
Chinese control. Because of the con-
fusion and general disorder likely to
ensue in the province after the with
believes that a certain time will be
required in which to restore public
order and the establishment of regu
lar system of Chinese police admins
tration. During this period Japan will
insist that she remain in control of
administration of the province at the
same time giving definite pledge
finally to evacuate as soon as China
shall be in a position to take up the
tain order.
A second subject for the plenipo-
tentiaries to settle will be the surren-
der of all the Russian ships now in
termed in neutral ports.
Europe believes Japan will demand
the naturalization of Vladivostock.
The Washington government does not
share in this belief. Indeed in official
circles here the statement is made
without hesitation that such demand
would not be moderate" or reason
able" and it is known that Russia
Will not permit the subject -of Vladi-
vostock to come before the confer
ence. Rather than submit to Japans
dictation on this point, Russia has let
1t be known that she would certainly
continue the war;
Little progress has been made in
the direction of an armiStice. Japan
has in the most determined manner in
Dictated its unwillingness to consent to
an armistice until her plenipotentia-
res have met the Russians in the
conference. The object of this, it is
now explained, in an authoritative
quarter is because Japan wishes to be
assured that Russia is prepared to
negotiate in seriousness for peace be-
fore the Japanese commanders yield
any of their ground in the field or give