Arizona republican., 1905-08-11
The Japanese Present it to Russian Peace FnVOyS
ITS UNDER ADMSEMFNT
The Fact That Reimbursement
 Politely Sugar Coats "Indeunity" flakes ths Pill None the Less Hard
 to SwaIlOw-Other Terms of Peace.

Portsmouth, Aug. 1O.-Reimburse- ment for the expenses sustained in the prosecution of the war and the cession of the Island of SakhaIin constitute the main features of the peace condi- lions handed by Baron Komura to M. Witte at the conclusion of the morning session of the plenipotentiaries in the general stores building of the Ports mouth navy yard. The word ''indem- nifty" is carefully avoided, the term be- ing reimbursement" for the cost of the war. No sum is fixed, the amount being distinctly adjourned for m1kuaI adjustment between the two countries after the Japanese expenditures have been ascertained. These are the two aIl-important conditions and those which the Russian plenipotepdaries find absolutely unacceptable.
 Unacceptable as they are, however it can be stated that these two principal conditions did not come as a surprise to the Russian plenipotentiaries. The friendly fashion in which Baron Ko- mura explained the conditions before handing them to NJ. Witte and the avoidance of the use of the word fin demnity'' in the presentation of Japan's bilr for the cost of the war without naming q sum leaves the way open for negotiations and constitutes the main hope that a final agreement is possible. Certainly the danger of a sudden rup- ture, no matter what the ultimate re- suit may be, is precluded by today's developments. Other terms are sub stantialIy what the world expected and with one or perhaps two exceptions could probably be entertained as a bas- is of negotiations.
 They include the following: The cessiOn of the Russian lease to the LiaO Tung peninsula comprising Port Arthur and Dalny; the evacuation of the entire province of Manchuria; the retnocession to China of any privileges Russia may have in the province and the recognition by Russia of the prin- ciple of the "open door; the cession to the Japanese of the Chinese Eastern railway below Harbin, the main line through northern Manchuria to Via dtvOstok to remain Russian property the recognition of the Japanese pro tectorate over Korea the grant of fishing rights in Siberia northward from Vladivostok; the reIinquishment to the Japanese of the Russian war ships interned in neutral ports, and finally a limitation in the naval strength of Russia in far eastern wa trrs
 As a, whole the terms are regarded as exceedingly hard by the Russians. In addition to the two principal condi- tiOns which cannot be accepted under NJ Witte's instructions those relating to the limiting of Russian naval power in the far east and the granting of fishing rights upon Russian Iittoral are consid- cred particularly offensive to the amour propre of their country and of such a humiliating character as to be inadmissible.
 The Japanese on the contrary. as Baron Komura announced at the con ference today, consider them moder- ate. contending that they only repre- sent a fair compensation for the ex- penses 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 spells claimed being only such as they are Iegitimately entitled to as the result of their artillery and naval sue cesseS.
 The Russian plenipOtentiaries as soon as the Japanese terms were in