The daily morning journal and courier., 1905-08-15
QUESTION OF SAKHALIN
 MAY BE LEFT ID LAST
TESTERDAY,S SESSION OF PEACE CONFERENCE DESCRIBED AS
 "AMLCABLE."

Great Stumbling Block, the CessiOn of the Island, Likely to be Reached To-
 day-Three Articles AdOpted-Russia Said to Have Gained a Victory in Re-
 IatiOn to the Time of the Evacuation
 of Manchuria and Surrender of Spec
 iaI Privilcges-IntegrityO of China.
 Portsmouth, N. H., Aug. 14.-Al- though very rapid progress was made with the peace negotiations to-day three of the twelve articles which con- stitute the Japanese conditions of peace having been agreed to by M. Witte and Baron Rosen on behalf of Russia, nei- ther of the two articles to which M Witte in his reply returned an absolute negative was reached. The crisis, there fore, is still to come. It may be reach ed tomorrow, as the cession of Sak- halin comes fifth in the list. The three articles" as they are officially desig- mated in the brief communications au- thorized to be given to the press, which were disposed of to-day are in sub stance as follows:
 First, Russia'S recognition of Japan's preponderating influence, and special position in Korea. which Russia hence forth agrees is outside of her sphere of influence, Japan binding herself to rec 1 ognize the suzerainty of the reigning family, but with the right to give ad- vice and assistance to improve the civ- il administration of the empire. Secaond, mutual obligation to evacu- ate Manchuria, each to surrender all her special privileges in that province, mu- tual obligation to respect the ''territori- al integrity" of China. and to maintain the principle of equal opportunity for | the commerce and industry of all na- tions in that province (open door). Third, the cession to China of the 1 Chinese Eastern railroad from Harbin | southward.
 There never was any question of the acceptance on the part of M. Witte of these articles, the first two cover | ing in more emphatic form the conten- tions of Japan in the diplomatic strug- gle which preceded hostilities. The | third is 8 natural consequence of The result of the war. The cessi0n of the railroad, the building of which cost 1 Russia an immense sum, estimated by some at between $1O0,000,O00 and s200,- fr ta f1,o md therefore, will arrange between them- l selves the method by which the former, is to be remunerated and through this financial operation Japan might have o very considerable portion of her claim for the expenses of the war" liqui- | dated. The railroad is ostensibly the property of the Russia-Chinese bank, although built by government money | advanced through the bank, and since its completion operated, managed and policed by the Russian government. Japan cannot take the railroad herself. To place herself in Russia's shoes re- garding the railroad would be militarily to control the destinies of the three i provinces of Manchuria, which she has promised to return to China. But Ja- pan is entitled to reimbursement for the expense to which she has been put in restoring the railroad below the pres | ent position of Linevitch's army, re- building the bridges and narrowing the guage. If China could not find the. money some other power or powers might do so.
 Both sessions of the conference to- l 1 sIAa,l G.. oi~Ia
 Tomorrow, in the ordinary course of proceedings, the first great stumbling block Ito a treaty of peace should be reached, as after Port Arthur and the leases of Liao Tung, which are included in Article 5, and which M. Witte is un- dcubtedly prepared, with slight modif- cations, to accept, comes Article 6-the cession of Sakhalin. But it is by no means certain that when this obstacle is reached it will not be postponed until all the articles upon which agreement is easy or possible are disposed of. If this course is folloWed-and the Associ- ated Press has high authority for the opinion that it will belt will indicate disposition to put off the real strug- gle to the very last, and the longer the conference endures the brighter the prospects of a treaty are likely to be- come. Every day they sit," said a very high authority, increases the chances of peace"
 A Japanese authority said to The As- sociated Press tonight:
 "The integrity of China is assured as the treaty of Washington is signed, as Japan has insisted that this point be set forth in language that can neither be evaded nor misunderstood. Japan's policy which, on this subject has al- ways been in line with the Hay doc Urine, will find a more vigorous express sion in the treaty of Washington"
 INCREASING ARMY IN KOREA.