Los Angeles herald., 1905-08-10
PEACE OUTLOOK
CROWS GLOOMY
INDEMNITY MAY BE CAUSE OF
DISAGREEMENT
CREDENTIALS ARE EXCHANGED
komura Expected to Make Japan's
Terms Known Today-Envoys
Are Silent Regarding
Possible Outcome
Rv Associated Press.

Ry Associated Press
PORTSMOUTH, N. H., Aug. 9.-With
the probability that Baron Komura will
tomorrow reveal to the Russian pleni-
potentiaries the terms upon which ia
pan is willing to conclude peace, opin-
ion as to the outcome among those who
are congregated here to watch the pro-
ceedings, has become decidedly gloomy.
This Is due to the growing convic-
tion that Japan's conditions will not
prove as moderate as were at one time
anticipated and, especially in the mat
ter of indemnity, may preclude the
possibility of their acceptance by the
Russian envoys as a basis of negotia-
tions.
The firm attitude of M. Witte in
private conversation against the pay
ment of indemnity and the insistent
reports emanating from Japanese
quarters that stiff war contribution
approximating the cost of the war.
variousy stated at from six hundred
to eight hundred million dollars, con-
stitutes one of Japan's demands, and
indicates wide If not an irreconcil-
able difference between Japan's ire
ducible minimum and what Russia is
prepared to accept.
Indemnity Question the Obstacle
Upon the question of the payment of
a large indemnity the instructions of
the Russian plenipotentiaries are be-
lieved to admit of no concessions, al
though it is possible certain compen-
sation in kind might be arranged.
For instance, it is suggested that for
the REIMBURSEMENT of the island of
Sakhalin, now potentially in Japanese
hands, the possession of which by
Japan would give her command of
the whole Siberian coast, Russia could
with propriety pay a large sum.
Gloomy forebodings, however, may
be premature at this juncture, as
everything indicates the plenipotentia-
r,es upon both sides are sincerely de-
The first meeting of the plenipoten-
tiaries today was of an entirely form
al character, so informal in fact that
Baron Komura did not bring his letters
of credence to the Portsmouth navy
yard. whereas M. Witte was armed
with the original document in Russian
setting forth the powers conferred up
on him, and also with translation Of
the document. The letter he read.
Baron Komura was embarrassed, and
offered to send back to the hotel for his
communication, but M. Witte expressed
his faith that the credentials were full
and ample, and 1t was arranged that
official exchange of credentials would
be made tomorrow.
Credentials Are Approved
Later in the afternoon, however,
copies of the credentials were inform
ally exchanged in order that they
might be examined before the meeting
tomorrow. President Roosevelt was
officially informed tonight that the Gre
dentials were fully ample and satisfac-
tory to both sides.
daily sessions, one in the morning be-
ginning at $3.50, and one in the after
noon beginning at 3.
The French text, however. in cases
of dispute, will be accepted in evidence
(faire foi) The official versions Of to-
days meeting given out by each side
describe it as satisfactory" and other
accounts indicate that while every
thing passed off anicably. considerable
reserve was displayed upon both sides.
While the Russian plenipotentiaries
expect the Japanese to present the Jap
anese terms Immediately upon the OFF,
cial exchange Of credentials tomorrow.
they admit they are in the dark. Baron
give any intimation of their course Of
procedure.
Pursuing the tactics which they have
constantly followed in all their diplo-
matte and military operations. they are
carefully guarding all their plans re-
garding the present meeting.
The Japanese and Russian newspaper
correspondents have broken the ice and
begun to fraternize. 1t is perhaps sig
nificant that the correspondents of both
sides are sending to their respective
houses dispatches of anything but an
optimistic character.
In the opinion of the Russians. the
emperor's manifesto promulgating the
national assembly project win mater
tally strengthen the position Of the
Russian ENJOYS by relieving the inter-
nal situation.