Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-08-16
Question of Cession of Chinese
Railway to China.
FINE POINTS INVOLVED
LONG AND EARNEST DISCUSSION
Is MOST LIKELY.
Details and Incidents of the Confer
ence In Progress at Portsmouth,
N. H.-Personal Notes.

The morning session of the peace commits
sloners of Russia and Japan today ended
at / o'clock During the entire time the
discussion was upon article seven of the
peace terms, which refers to the cession
Of the Chinese eastern railroad to China.
The following statement of the conference
was made by Mr.. Korostevetz at the close
of the morning session:
I'm the morning sitting of August l6 the
conference has taken up the discussion OF
article seven. The discussion not having
been finished the conference has taken a
recess at / o'clock The session Will be
resumed at o'clock
The exchange Of Views this morning was
of a very earnest character. and 1t is ex-
pected that the discussion of article seven
will consume all of the afternoon session.
Indeed. at the time the ENJOYS adjourned
for luncheon they were not at all certain
that they would be able to complete the
discussion today.
PORTSMOUTH. N. H., August 16.-The
Japanese envoys. after trip from Ne"
Castle in an uncovered motor car, thougn
a cold rain prevailed, arrived at the navy
ward at e:4O today. The Russian commits
sior ers reached there a few minutes AFTER
ward 1t is understood that the supJect u
be considered today was No. OF the peace
conditions which is the one relating 10 the
cession Of the Chinese Eastern raiiroad u
China.
Machining today. the peace plenipotentia-
ries are to be served with breakfast IN
their dining room at the naval stores build
,ne, at the navy yard. Heretofore lunch
son and afternoon tea had been served In
the dining room and the arrangement mas
proved very attractive.
The menu for breakfast Is printed III
French and sets forth an array OF oisnes
calculated to please the appetite of the Wild
est variety.
Breakfast will be ready each morning al
$50 O'Clock, and 1t is the intention TO nave
the meal concluded so that the session OF
The conference may begin by 10. The ulp
of the euvoys from the hotel to the navy
yard this morning was very disagreedpie on
account of the steady, chilling ram, 10
which the japanese representatives III tlieii>
omen automobile were exposed
The article before the plenipotenuarles
today-No. Towering the question or the
cession to China of the chinese hasle.n
railroad, which runs south from Harpln 10
Port Arthur and Ddlny, with a spur 10
Niuchwang. where 1t connects with me
Standardization Tsin road, was condl-
tionally accepted by the Russian reply, Dut
agreement TO It was bound up with conSid-
erations involving the fate of the whole ne
eatiations, and it is certain TO lead TO long
and earnest discussion.
Russia Rejects Contention.
Russia will not admit the Japanese con
tention that the road is wholly a govern
ment institution. as all the shares of the
railroad corporation are owned by the
Russo Chinese Bank. The governments in
terest in the road however, will probably
not be denied. but it will be urged that so
far as it IS private property 1t IS not conils-
cable.
The Russian contention Will be backed
ND by evidence. Mr.. Berg the vice director
and attorney of the Russo-Chnese Bank,
while here attached to the mission one
of NJ. Whites secretaries is also here to
protect the interests of the bank. Never
theleSs. IN the long run. Russia, 1t can be
regarded certain. is prepared to give up
the road, remuneratIng the Russo-C Chinese
Bank If necessary, with the loss of Port
Arthur and Dalny and the evacuation of
Manchuria its raison detre for strategic
and military purposes ceases.
Involves Money for Japan
Its surrender to China, however. involves
large monetary profit for Japan which
can properly claim remuneration from
China for the restoration of the road. the
rebuilding of the bridges and the change in
the gauge. II will be for China and Japan
to arrange this, but however adjusted, the
money which Japan will obtain might be a
partial remuneration" for the cost of the
war which she demands from Russia and
constitutes, perhaps. the line of ultimate
compromise If a treaty eventually is signed.
1t is quite likely. therefore, that agreement
on the article after discussion will be held
in allegiance until later and Will be settled
in the final exchange of views.
There are other reasons why this will
probably be the case The main line of the
Siberian railroad through northern Man
Churia 10 VladivOstok. which Russia will in
sist on retaining, connects at Harbin with
the Chinese eastern, and the commercial
value of both roads VIII ultimately depend
upon their traffic arrangement and their
method of operation and cooperation
Worlds Swiftest Highway
AS the system together now constitutes
the worlds swiftest highway from Europe
to the orient, the matter is very complicated
and win require much time for final detailed
adjustment.
The article relating to the main line of the
Siberian railway through northern Manchu-
ria, which is believed to be number eight Of
the peace conditions. contemplates Its re-
tention by Russia but, 1t is believed pro-
vides for its policing solely by Chinese po-
lice. On account of the Chinese brigand
bands (chunchuses) which infest Manchuria
and Mongolia the strength and number of
which has hEen NV ba