The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-08-18

will he discussed tomorrow, relates to the
Japanese demand for fishing rights OF tho
Siberian coast.
THE OFFICIAL BULLETINs.
Herewith are the bulletins:
AT the morning session OF Aug. II the
plenipotentiariss discussed Article TX. lin
demnity). Not being able to reach unani-
NOUS decision, the conference decided to
record the divergence OF views, and pro-
ceeded to the discussion Of the following
article.
'The conference recessed until o'clock.
in the afternoon session Of the nth
Articles K and x1. (interned ships andlimita-
tion Of naval power) have been discussed.
Regarding Article X the plenipotentiaries
have shown divergence Of views. which
has not been settled. Article X. has been
reserved for further discussion.
THE conference adjourned until to-mor-
row morning, Aug. 49,"
But behind these few formal words there
Is story Of deep interest that will some
day become q part Of history. For the
present the details are withheld through
tho observation Of a pledge of secrecy
imposed upon the ENJOYS and those who
sit with them in the conference hall.
Only the bare facts Of what has been
accomplished have managed to penetrate
beyond the guarded doors of the star oham-
Der where the fate Of great nations is being
discussed. Enough is known, however,
to throw some side lights on the existing
situation and to give an intelligent idea
Of the momentous problems with which
the plenipotentiaries are confronted.
sAKHALIN PROBLEM ABOUT SOLVED.
There are some who may And cause for
hope in the fact that the Japanese demand
for the formal cession OF Sakhalin Island,
which they claimed by right Of conquest,
has been practically adjusted. According
to the understanding obtained to-day the
Russians have virtually consented to Japan
ese limited possession OF sakhalin, but under
the condition that it shall not be fortified
or used as base Of naval operations
However, there. is practically no absolute
compromise yet arranged and the. sakha-
lin demand, which is Article v. Of the
Japanese conditions, will be taken UP again
when the ENJOYS come to consider in con-
solidated and correlated form the points
upon which there was divergence Of views.
The importance Of the virtual under
standing as to the disposition Of the terri
torial conquest Of the Japanese cannot be
overestimated under present conditions.
From the first the Russians have maintained
that they would never surrender an inch OF
territory to their enemy, and when the
subject of Sakahlin was reached In the
exchanges there were many who believed,
and honestly believed, that the good ship Of
peace had gone on the rocks.
THE FIRST CRISIS AvERrEp
It was here that a crisis might have come,
but 1t was averted by the good sense Of
the plenipotentiaries, who agreed to leave
the question for future discussion. Later
on, It appears, both sides found means Of
coming together. and, while they have not
formally entered into an agreement as to
this particular matter, 1t seems now as IL
the very important question Of territorial
cession would be compromised.
Another thing, too, shows that the ENJOYS
have been animated by spirit Of concilia-
ton in the discussion Of points upon which
it was believed neither would give way.
The Japanese demand for the possession
OF the Eastern Chinese Railway, that Man
churian enterprise Of Russia which had
more to do, perhaps, than anything else in
bringing about the present disastrous
war, was also regarded as one OF the worst
stumbling blocks in the pathway OF sue
cessful negotiation.
Yesterday the ENJOYS; to <he surprise Of
all those on the outside, managed to
reach an agreement that the portion Of this
railway running from vhdivostok to a
point ten miles from Hardin should be
under Russian control and the portion from
the point mentioned to Port Arthur should
be under Japanese control, subject to a
future arTdn cement OF oetQlB.
RIGHTS OF INVESTORS CONSERVED.
1t became known to-day that this future
arran cement related to the rights of persons
who had subscribed for bond issues to build
the railway line, which means substantial
concession from the Japanese side. The
road was financed by the Russo Chinese
Bank, which issued bonds TO raise the
money necessary for construction and
equipment These bonds were sold 10
Russia and In other countries, and while the
actual construction work was done by the
Russian Government the rights Of the bond
holders were not affected.
It was the consideration shown by the
japanese ENJOYS toward the property in
forest Of their bondholders In the railway
that brought about the agreement that
Japan should control It for the greater
portion Of its route through Manohuria'
! Az soon as information has been received
as to the disposition made Of the railway
bonds provided 1t should come before there
Is break in tho negotiations. the agreement
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