The daily morning journal and courier., 1905-08-14
NO SUNDAY CONFERENCE
 OF THE PEACE ENVOYS
BY MUTUAL AGREEMENT THEY DEFER THE MEETING
 UNTIL TO-DAY.

sally Observe as Day of Rest-Gen-
 eraI Feeling Again Hopeful Despite
 Gloomy Predictions of Persons COn-
 nected With the AIissiOns--Witte to
 Hold "YeIIow PeriT' Up as Spectre.
 Portsmouth, N. H., Aug. 1S.-No progress has been made with the peace negotiations over Sunday. They stand exactly where they did last night. The session of the plenipotentiaries which was to have been held this afternoon was postponed by mutual agreement out of deference to the fact that 1t was the holy Sabbath, which is univer- sally observed in Russia as day Of rest.
 The Russians had not been anxious for a session to-day. and this morn ing the Japanese took the initiative, and through the intermediary, Mr. Peirce, it was decided to postpone the sitting until tomorrow morning. The situation, therefore, remains the same. It would perhaps not be too much to say that the general feeling is more hopeful in spite of open predictions made by personages connected with both sides of the negotiations that be- fore next Sunday the plenipotentiarles will reach an impasse where a rupture will become inevitable. This pessimist- ic view is based upon the fact that so far as known the two big barriers to an greement-indemnity and Sak- halin-remain as high and insurmount- able as ever.
 The real struggle is only postponed. The main problems are no nearer solu- ton than when the plenipotentiaries met. The principal reason for opti- mism lies in the fact that, confronted with the absolute refusal of the Rus sian reply to admit the discussion of either indemnity or the cession of the Island of Sakhalin the Japanese pro- posed to take up the consideration of the conditions seriatim. From this it is argued that the Japanese are prepar- ed to yield or have reason to believe a way will be found to overcome the crucial test comes.
 An intimation comes from high source that very strong outside inftu- erlces are at work on. both sides and that for the moment, the effort is to gain time. The plan of having Russia practically satisfy Japans claim of re-. imbursement for the cost of the war by the purchase of the Japanese mili- tary evacuation of Sakhalin continues to be advancel.
 Such solution would permit Russia to say she had paid neither indemnity nor eeded foot of territory.
 The debate in yesterdays conference over the first condition-the recognition of Japan's ''preponderating influence" over Korea, involving her right to con- trol the administration of the hermit kingdom. use the littoral for strategic purposes, etc.-was of a remarkable character. Indeed, the position taken by M. Witte was sensational in the extreme. His attitude reveals plainly the Russian tactics. They propose to raise before the world the spectre of the yellow peril Russia claims that Japan's present purpose is to get a foothold on the Asiatic continent from which to extend her influence and do- Ininion.
 M. Witte made no objection, but he declared the words ''preponderating influence did not adequately describe what Japan proposed to do and he is- sisted that the language used should show Japan's true purpose-which, he contended, is to make a Japanese prov ince of Korea. His argument might be summarized as follows:
 Russia has no objection to Japan talk ing Korea but must avow it plainly. If it is to be taken it should be taken off, cially so that the world will under stand. You propose to take possession of the persons of the entire adminis- tration of the kingdom from the en- peror down to the smallest official Korea will have no representative abroad who can explain the situation from the standpoint of the Korean. All of which means Korea is to belong to Japan. So be it. Russia will not ob- ject, but Japan should avow purpose which is against the interests of Europe and America, especially against the in terests of the United States, China and even your ally, England. If this is sat- isfactory to Europe and America, Rus- sia raises no protest. You propose to destroy every vestfge of the sovereign ty of the emperor of Korea but you de- sire to employ formula which will conceal your true purpose. The coun- try which will suffer most is America, which will understand it in about ten years, when it is too late, To this ar- gument Baron Komura dissented most vigorously, although in the most friendly manner, contending that Japan only sought to secure for herself in Korea the commercial industrial posi- tion to which she was entitled, to aid in its civilization and development, and to protect the kingdom from adminis- trative anarchy.
 The fact that the Korean question should be the first to be discussed in the peace conference is strangely fit- ting, as it was over Korea that the long struggle between Russia and Ja- pan, which culminated in the present bloody war, began. After Japan was forced out of Port Arthur and Liao tung in 1895 each became suspicious of the extension of the others influence in Korea, and first in the Lobanoff agreement of 1896 and later in the Nissi- Rosen agreement of 1898 they entered
 rlContinued on Eighth Page)