The San Francisco call., 1905-08-17

both are anxious 10 conclude treaty
Though the main points remain 10 be
contested and each side speaks as though
the conference would 60 TO pieces unless
the other gave way. the spirit Of COM
promise is in the air. When he returned
to the hotel tonight Mr.. de Witte, who
was tired out with his hard days work
said:
Il am doing all can for peace OF
the eight articles we have already con-
sidered. I have yielded seven. No other
statesman in Russia would have dared
10 DO so much, and / have done what
have done on my own responsibility.
From an authoritative source IL is now
possible TO forecast with a fair degree
OF accuracy that the. crisis Will come
on next Monday Articles and s, deal
ing with the fate Of the Chinese East
ern Railway, having been disposed of to-
day. there remain, IN addition 10 the
cession OF Saghalien, which was passed
over, the question Of indemnity, which
viii come I'd tomorrow as article 8; the
Limitation Of Russia's sea power in the
Far East, the surrender of the interned
warships and the granting TO Japan of
fishing rights on the coast north of
NladiVostok.
To ell except the latter, to which Rus
sia viii agree, a negative answer has
been returned, absolutely in the case Of
indemnity and Saghalien. Perhaps both
the others may be modified and accepted
by Mr.. de Witte in order TO strengthen
his position in insisting upon a conces-
sion from Japan regarding its demands
Of an indemnity and Saghalien.
Before yielding on either Of the latter,
II can be regarded as practically certain
that Mr.. de Witte would consult the
Emperor.
MONDAY THE CRUCIAL DAY.
The exchange of views on the five re-
manning articles Is expected TO be COM
-fr4rr
al the latest. The plenipotentiaries will
then adjourn until Monday and the in
term probably Will be used by the pleni-
potentiaries in consulting their respee-
tive governments. When they meet on
Monday their last cards will be thrown
upon the table If there is to be bar
gaining il will come then and suddenly
the conference viii be over and peace
will be assured The plenipotentiaries
will come together with protocols drawn
up to sign and part or all remain for the
elaboration Of the Treaty Of Washing
ton"
Articles Z and s were disposed Of to-
cay, the former 'In principle" the latter
unanimously according TO the official
bulletins
Article provides for the cession to
China Of the branch Of the Chinese East
ern Railroad running south from Harbin
tc Port Arthur and Dalny and with
with the -Tientsin road.
Article provides for retention by Rus
sia Of the line through Northern Man
churia, which forms the connecting link
OF the main line Of the trans Siberian and
Csurri Railroad. with its terminal at
Vladivostok and Harborovsk.
The acceptance "in principle" Of article
Z only means that certain phases remain
To be elaborated, not that a dispute still
exists But this may be possibly only a
convenient method of postponing until
the final struggle the acceptance of an
article which would be used in the uiti-
mate compromise.
RUssIA's DREAM VANISHES.
Russia, by the acceptance of these two
articles in connection with articles z. q,
4 and g. surrenders every vestige Of her
ambition in Manchuria- She closes the
door 10 the warm water, ice-free port of
Dalny. upon which she lavished her mil
lions, and retains only the link of the rail-
road connecting her European possessions
with the maritime provices upon the Pa
cific The right to police IL with Russian
troops or railroad guards is given up and
its protection viii become the duty OF
China
There were persistent rumors about the
hotel late to-day that several powers, In
oluding the Washington Government, are
bringing pressure to bear upon Japan to
1OreEO the cost OF the war anu COlAleub
herself with such other compensation as
she can secure out Of the railroad, the
Russian property in Port Arthur and
Dalny and the cost of the maintenance
Of Russian prisoners in Japan. this only
on the theory that Russia viii eventually
agree TO cede Saghalien, which is now
pOtentially conquered territory. This is
undoubtedly the line Of ultimate compro-
mise if compromise there is to be.
Neither the question Of making Vlad-
ivostok an open port or the Anur
River an international waterway is
included in the japanese terms
JAPAN WANTS INTERNED SHIPS.
Japan viii make stiff fight for the
possession Of the interned Russian war
ships One reason for this is the
japanese intention not to apply the
Indemnity, in case one shall be received,
10 the increase Of the navy. The in
demnity will be used for paying off
financial obligations incurred during the
war. the granting Of pensions and the
development Of the Japanese educa-
tional system. To replace the losses to
the feet incurred in the war and to
maintain the feet up to a standard of
strength and efficiency sufficient to de-
fend herself, Japan needs additional
battIeships and cruisers. II she OBJ
tains All OF the Russian ships now in
termed in neutral harbors and succeeds
fn raising number OF those sunk in
battle she viii have saved the neces-
sity. for the present at least, of a large
naval budget for construction. The Lon
don government is strongly in favor Of
fnsistence upon this article and Japan
seems to have set her heart upon the
surrender OF the ships by Russia.
Both japanese and Russian pIenipo-
tentiaries were late for dinner tonight,
having stopped at the cottage of Mrs.
Peirs for a cup Of tea and to apologize
for not having reached there in time
for a formal reception earlier ia the
afternoon.
An informal dance was given in the
ball room this evening with several of
the japanese in attendance
Japanese-Korean Agreement