The daily morning journal and courier., 1905-08-30
JAPAN WILL REAP RICE
 RETURNS FROM THE WAR
FOREGOING OF INDEMNITY NOT SUCH i SERIOUS
 MATTER.

High Russian Official Points Out the
 Great Advantages She Has Gained
 Russia Killed in the Far East-Years of Effort and Expenditure of Vast
 Sums LOst-Japan Will Derive Im-
 mense Returns From the Fisheries
 North of Siberia-win Eventually
 Control the Coast.
 St. Petersburg. Aug. SO.-A Russian official of high standing, who is thor oughly conversant with the policy of the government, when informed by The Associated Press that peace had been concluded at Portsmouth, expressed his regret that Russia had eeded to Japan even half of the island of Sakhalin. "The Japanese were blufTing," he said, "and if We had held out we would not have been obliged to give them any ter ritory whatever"
 Another official whose position en- titles his views to much consideration expressed it as his conviction that in the negotiations for the new treaty between Japan and Great Britain to su- persede the existing alliance, which he said might even already have been signed. Japan gave assurance to her ally that she would make peace by fore going an indemnity and that Great Britain in turn would give Japan finan- cial aid.
 You will very soon see," said this informant, "that Japan will be raising loan in England.
 "The result attained at Portsmouth kills Russia in the Far East. Our long years of effort and the expenditure of vast sums are practically totally lost to us from to-day It is very hard blow and will assuredly effectually stop our growth in the Far East for years, may be for generations to come, and our prestige here suffers beyond deserip- 1 ton.
 Tn discussing the terms granted to Russia it is useless to enumerate that all we have ceded to Japan is much more than she made. war for and gives her erloi nous returns and advantages which will only be fully recognized later. Take, for example, the fisheries rights off the Siberian coast north of yladivostok. Tn some respects this is the most serious and far reaching con cession made by M. Witte; by some Is considered the greatest mistake, menacing even our ultimate retention of portions of Siberia. It means that the Japanese will soon become absolute masters of this coast and in a great measure of the hinterland. We have no people there and no means of protec- tion against Japanese encroachment. The Japanese will practically colonize this coast with fisher-folk, establish stations and ports and become masters of the whole coast. Their influence will spread and strengthen with the lapse of years, and 1t will be impossible for us to counteract it.
 "As for Manchuria: The turning over of this province to China will give Japan predominating position in China of which she will take full ad- vantage, drawing from 1t material ad- vantages many times more valuable than Manchuria with all its wealth. Japan stands to-day toward China as her greatest benefactor. Having re- stored to her by force of arms this very wealthy province she can now impose upon China the signature of a secret treaty giving her unlimited valuable concessions and many other political and material advantages. In many ways she may impose her will upon China, every one of which will work out to Japanese advantage This act of restoring Manchuria to China means concessions and advantages to Japan much more valuable in the long run than her original demand for indemni- ty.
 "The war will be good thing for Russia,' this informant said in con- clusion, 'if it results in forcing her to change her ways and methods of inter- nal and other administrations, and I fbiY,L if ur;1J p