The Montgomery advertiser., 1905-08-11
First Hitch in Portsmouth Conference. THE TWO MAIN DEMANDS CeSSi0n of Sakhalin and
 Reimbursement" The Way Still Open for Negotiatfona
 and 1t is Being Hoped That Final Agreement Will Yet be Reached.
THE TWO MAIN DEMANDS

bursement for the expenditures sustain ed in the prosecution of the war and the cession of the island of Sakhaiin constitute the main features of the
 peace conditions handed by Baron Komura to MT. Witte at the conclusion
 of the morning session of the plenipo- | tentaries in the general stores bufld- nigs of the Portsmouth navy yard, the | word indemnity being carefully avoided and the term employed being reimbursement" for the cost of tho war
 No sum is fixed. the amount being distinctly adjourned for mutual adJust- | ment between the two countries after the Japsnese expenditure has been as- certained.
 These are the two all-important con- ditions and those which the Russian | plenipotentaries find absolutely inac- ceptable. Unacceptable as they are. however, it can be stated that these | two principal conditions did not come | as surprise to the Russian plenipoten- | taries. The friendly fashion in which Baron Komura explained the conditions before handing them to M. Wttte and the avoidance of the use of the word indemnity" in the presentation of Japans bill for the cost of the war. without fixing a sum. leaves the way open for negotiations and constitutes
 
 | Is possible. Certainly the danger of a | sudden rupture. no matter what the | ultimate result may be, is precluded by | today's developments.
 The other terms are substantially what the world expected and with one or two exceptions could probably be
 entertained as a. basis of negotiation. | They include the following:
 The cession of the Russian lease to
 the Liaotung peninsula, comprising Port Arthur and DaIny. the evacuation | of the entire province of Manchuria. the | retrocession to China of any privileges Russia may have in the province and l the recognition by Russia of the prin- ciple of the "open door," the cessfon | to Japan of the Chinese Eastern Rail- | road below Harbin, the main line 1 through northern Manchuria to vladi- l vostok to remain Russian property. the l recognition of the Japanese protecto- 1 rate over Korea; the grant of fishing
 rights to Japanese in the waters of the
 Siberian littotal northward from | Vladivostok to the Behring sea. the re- :. iinquishment to Japan of the Russian | warships interned in neutral ports:
 finally, a limitation upon the naval
 strength of Russia in Far Eastern
 waters.
 Too Hard, Thinks Russians. | As a whole, the terms are regarded
 as exceedingly hard by the Russians. | In addition to the two principal con- ditions, which cannot be accepted un-
 der Mir. Witte's instructions, those re-
 lating to the limiting of Russia's naval
 power in the Far East and the grant,
 ing of fishing rights upon the Russian
 littoral are considered particularly of bfensive to the armour propre of their
 country and of such humfliating
 character as to be inadmissable.
 .ksn@ nA
 Baron Komura announced at the con-
 ference today. consider them moderate. | contending that they only represent a | fair compensation for the expenses of
 the war and the victories they have
 achieved on land and sea. their sole
 purpose being to attain the objects for
 which they have fought, the spoils
 claimed being only such as they are
 legitimately entitled to as the result
 of their army and naval successes.
 The Russian envoys, as soon as the
 Japanee term were in their hands,
 called in the five expert delegates att 1 tached to the mission and spent the
 whole afternoon in the consideration | of the terms. Meantime. the conditions
 had been placed in cipher and cabled 1 to the Czar with M. Witte's personal | recommendations. It is hoped that a
 reply will be received from the Elm peror tomorrow in which case M. Witte expects to have the Russian response
 ready by Saturday but 1t Is not un-
 likely that Saturday. being the first
 anniversary of the birth of the Czare-
 witch. the presentation of the reply
 will be deferred until Monday. Mean
 time the plenipotentiaries will not meet
 unless some unexpected necessity for conference should arise.
 The Japanese plenipotentiaries man.
 ifest not the slightest annoyance at the | of
 realize how serious the issue is and
 are perfectly willing to give their
 Russian colleagues ample time for consideration. Mir Witte and Baron
 Rosen had yesterday accepted an invi-
 tation to dine with Assistant Secre-
 tary of State Pierce and in spite of their arduous labors at the navy yard
 today, they kept the engagement. At g o'clock upon their return to their
 quarters at the hotel. they plunged again Into their work and the lights in their room burned long after mid- night. The Russian and Japanese plenipotentiaries denied themselves to callers, no statements were issued and only to a few were Japan's conditions known.
 A Glorious Day.
 Tn glorious sunshine shortly after o'clock this forenoon the peace plenipotentiaries of the warning na- lions of the east set out for the navy ward here to hold their second session. at which, according to general belief. Iapan might be expected to show her hand to her adversary and upon the moderation or stiffness of which will depend the continuation of the war in the far east.
 In some well informed quarters. how- aver. doubt existed whether the Japan ese would today lay their cards on the table. For some reason, the impression existed that Baron Komura was sparr- ing for a little more time. Indeed 1t bad' heen vaguely intimated that some minor preliminaries regarding proce- dure remained to be settled and that inc whole day, posiblys. might be con-' tuned in decision upon these details The Japanese envoys gave not the sl,ghtest hint of what was to be expect ed. With all the secrecy observed by Oyama in planning forward move meat, Baron Komura and his suite '