The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-08-09

Are Now In JapAn's POsssssiOn-Her
Terms stu Secret ENJOYS Believed
to he Sincerely Anxious 70 Reach
An Agreement At This Conference.
PORTSMOUTH, N. H., Aug. s.-With the
opportunity Afforded, as it was to-day,
OF securing some idea OF the respective
views of the Russian and the Japanese
Governments in regard to the questions
which will be presented to their ENJOYS
for consideration at the Portsmouth con-
ference the conclusion is unmistak able
that both nations are sincerely anxious to
unwillingness to make substantial conoes-
sions to secure that happy outcome.
Since the oonferees have come together
under the same roof. although only few
hours have elapsed, a decided feeling Of
hopefulness prevails that Is not based on
mere rumor or the influence Of sentimental
association. but upon grounds that are re-
garded as substantial.
While the Japanese peace conditions are
still dark secret things that we're said by
those who have some knowledge Of what
are the wishes and desires OF the Toxic
Government indicate that Japan is not
disposed to infiict humiliating terms upon
her enemy and will strive to bring about a
mutual agreement that will be as fairly
satisfactory to both nations as can be ar
ranged under existing conditions.
A little more and with a greater degree
OF positiveness can be said OF Russia's
position. The Russians, although appar-
emily set in their expressed determination
not to pay japan money indemnity real
ize the futility OF laying down the principle
that the Japanese, as the victors up to this
point, are not entitled to some compensa-
ton for the heavy expenses to which they
have been put through their struggle to
drive Russia from Chinese territory and TO
prevent the extension OF Russian influence
into Corea.
out the payment Of hard cash is question
to which the Russians have given much
thought, and it is to be assumed from what
is said tonight that they are hopeful of
finding a way out Of the difficulty
WHAT RUSSIA MAY OFFER.
There Is reason to believe that the Rus
SLAMS, should the subject be brought for
ward in proper way, intend to propose
that the Japanese accept, as part indemnity
at least, the entire ownership and control
Of the Eastern Chinese Railway, Russia
surrendering all rights to this great enter
prise.
It Is true that the railway is now con-
trolled by the Japanese, but it is pointed
out that the road is in Chinese territory,
and the assumption OF its operation by
the Japanese Government by right Of con-
quest might prove to be embarrassing as
Inconsistent with Japan's frequently ex-
pressed determination to return Man
churia to China, and might perhaps lead
to differences with the other Powers.
Those considerations might be overcome,
1t ia oontended. II Russia freely consented
to transfer by treaty the ownership OF the
railway to Japan, and at the same time
entered into a stipulation with her enemy
that the road was to be regarded as having
a specified cash value to be deducted from
the total amount with which Japan would
be satisfied.
This proposed virtual trade-off. giving TO
Japan, free and unincumbered. valuable
trade and military asset, and also permit
ting Russian self-respect to remain intact,
ia likely to become one Of the most i'm
portant questions before the conference.
With regard to the transfer Of territory
to Japan, the Russians are believed to
be willing to 60 a step further than has
been indicated heretofore. certainly in
connection with the disposition OF SAX
halin Island, now controlled by Japanese
military forces. 1t ia possible to say that
the Russian Government would, in certain
circumstances. be willing to cede back
that portion Of the island which was wrested
from Japan In 1878.
There would, 1t il claimed, be no humilia-
ton in such a course, as it would be merely
a restoration OF territory once Japanese.
FIRST SESSION THIS MORNING.
For the moment these and other ques-
tons cannot be considered with any definite
assumption Of the effect they may have
upon the prospects Of peace. for the reason
that the Japanese peace terms have not
been presented. But 1t is clear that the
hopeful feeling is in the ascendent
Both sides appear anxious to get to work
right away, and an evidence Of this desire
y Afforded by an agreement reached BY