The Birmingham age-herald., 1905-07-27
Indemnity Must Cover the Cost of the War Up to the
 Present Tims
MANCHURIA Is DELICATE SUBJECT OF CONVENTION Japan May Also Insist That All ln- termed Warships Be Turned Over
 to Her-Will Not Humil-
 fate Russia.

Washington July 26.-Whether there is to be peace in the far east or contin- uance of the war, will be practically de- cided at the first business meeting of the Washington conference, which Will convene at the navy yard, Portsmouth N. H., about August 5.
 Baron Komura will on that occasion communicate to M. Witte the essentials or Japan's peace terms for further negotia- tions. This, it is declared, will not be done in a spirit of defiance; indeed, there are many evidences in the possession or the neutral governments that Japan IS coming to the Washington conference not imbued with a desire to humliate Russia. but only to exact terms which will insure a lasting peace in the far east, and which will in a measure compensate Japan for the financial losses in the present con fiict
 Throughout the preliminary negotia- tions. however, Japan has made 1t clear at Washington that she wished to avoid unnecessary tedious negotiations.
 Will Lay Down Basis Terms.
 We are not going to the conference to write into the law of nations new chapter" said a high Japanese official recently. For this reason the Japanese plenipotentiaries will adopt the pro- gramme of at once laying on the con- ference table those terms, the accept ance of which without modification, they are instructed to insist upon as basis for further negotiations.
 Although guarding with great care the official statement of her terms. Japan has not kept from several friendly govern ments the general character of these terms.
 Official Washington has been enabled to form within certain limits general idea of their character.
 Will Reach Billion Dollars.
 It 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 pre- liminary negotiations. The amount still is a secret, but it is based upon the most careful estimates of the wars cost, and will be accompanied by a more or less de- tailed statement showing the method by which the final figures were computed. It will not fall short of $1,00O,0O0,0oo accord ing to advices reaching here from we'll informed sources Besides the indemnity it is believed Japan's other essentials to the continuance of the negotiations are the cession to Japan of Sakhalln, of the Lima Tung peninsula and of the railway as far as Harbin; the recognition of Japan's predominating influence in Corea and the return of Manchuria to China.
 If the Russian plenipotentiaries are pre- pared to accept these essentials the off, cials here are confident that the basis will be laid for negotiations sure to lead to the signing of the treaty of Wash ington, bringing peace in the far east.
 Manchura Is Bone of Contention.
 As for the subjects remaining to be discussed, a tedious one it Is believed and one on which Russia will be disposed to negotiate with the greatest caution. is the programme for the restoration of Man churia to Chinese control Because of the confusion and general disorder likely to ensue from the province after the with drawal of the foreign armies, Japan be- lieves that certain time will he required in which to restore public order and the establishment of a regular system of Chi nese police administration.
 During this period Japan will insist that she remain in control of the adminis- tration of the province, at the same time give a definite pledge finally to evacuatc as soon as China shall be in a position to take up the reins of government there and maintain order. It is believed the policy to be suggested by Japan in this matter will not be unlike that followed by the Washington government with ref erence to Cuba, troops being withdrawn from the island as soon as al stable gov ernment was in control of the situation.
 second subject for thei plenipoten- tiaries to settle will be the surrender of all the Russian ships now interned in neutral ports Some are inclined to be- lieve that this demand will form one of the essentials, while others claim grounds for belief that Russia may in- duce Japan to take these in part payment of the indemnity.
 Varied Opinion About VIadivostok.
 Europe believes Japan will demand the naturalization of v1adivostok lThe Wash ington government does not share in this belief Indeed, in offiical circles here the statement Is made without hesitation that Sucn demand WOulu not De mooerdte or reasonable" and it is known that Russia will not permit the lsubject of valdivostok to come before the confer ence Rather than submit to Japans die tation 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. London has not yet seen its way clear to aid the President in his efforts to this end, and Japan has in the most determined man. ner indicated it's unwilingness to consent to an armstice until her plenipotentiaries have met the Russians in the. conference.
 Wants Russia to Be Serious.
 The object of this. 1t is now explained in an authoritative quarter, Is because Japan wishes to be assured that Russia is prepared to negotiate in seriousness for peace before the Japanese command CTS yield any of their ground in the field. or give the Russians time to increase the forcoc at tho frorf Inf0rv5o fiau 1,ae