The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1905-08-16
The Indemnity and SAX
hahn Questions.
The PROGRESS MADE
Recognition of Japan's Preponderance
in Korea, Open Door in Manchuria
and Cession to China of Chinese
Eastern Railway South OF
Hardin.
Harbin.
(By the Associated Press

Portsmouth, n. H., August 14.-Al-
though very rapid progress was made
with the peace negotiations to-day
three of the twelve articles which
constitute the Japanese conditions of
peace having been agreed to by M.
Witte and Baron Rosen on behalf of
Russia neither of the two articles to
which Mr.. White in his reply, returned
an absolute negative was reached.
The crisis, therefore, is still to come.
Ii may be reached tomorrow, as the
cession of Saxhalin comes fifth I'm the
list. The three articles, as they are
officially designated i'll the brief COM
munications authorized to be given to
the press, which were disposed of to-
day, are IN substance as follows:
First Russia's recognition of ia
pans 'preponderating influence and
special position in Korea, which Rus
STA henceforth agrees is outside of her
sphere of influence, Japan binding
herself to recognize the suzerainty of
the reigning family but with the right
to give advice and assistance to i'm
prove the civil administration of the
empire"
Second. Mutual obligation to evacu
ate Manchuria, each to surrender
all special privileges in that province,
mutual obligation to respect the ter
ritorial integrity" of China and to
maintain the principle of equal OPP
portunity for the commerce and in
dustry of all nations in that province
(open door).
Third. The cession to China of the
Chinese Eastern Railroad from Har-
bin southwark.
There never was question about
the acceptance on the part of Mr..
White of those articles the first two
covering i'm more emphatic form the
intentions of Japan in the diplomatic
struggle which preceded hostilities.
The third is a natural consequence of
the result of war. The cession of the
railroad, the building of which cost
Russia an immense sum, estimated by
some at between $10O,0O0,00O and
5000. 100000 is to China. Japan and
China, therefore, will arrange be-
tween themselves the method by
which the formr is to be remunerated
and through this financial operation
Japan might have a very considerable
portion of her claim for the Expenses
of the war" liquidated. The railroad
is ostensibly the property of the Russo
Chinese Bank, although built by gov
eminent money advanced through the
bank and since its completion Ope-
rated, managed and policed by the
L..
take the railroad herself. To place
herself in Russia's shoes regarding the
railroad would be militarily to control
the destinies of the three provinces of
Manchuria, which she has promised to
return to China. But japan is en-
titled to reimbursement for the ex-
pense to which she has been put in
restoring the railroad below the pres
ent position of Linevitch, rebuilding
tl,ra
If China could not find the money
some other power or powers might do
so and the road would become
hypothecated to the powers which adj
vanced the money, as other Chinese
roads are to those which advanced the
money for their construction. 1t was
Mr.. White himself who organized the
Russo-Chinese Bank in 1895 and who
has always been considered the real
organizer of the Chinese Eastern
Company Mr.. Borg, the attorney of
the Russo-Chinese Bank, which owns
practically, if not all, of the shares of
the road, is attached to the Russian
mnSSion.
The Sessions Amicable.
Both sessions of the conference to-
day are described as ''amicable.'' There
were several slight jars but none of
them serious.
Tomorrow, IN the ordinary course
of proceedings, the first great STUN
bling block to a treaty of peace should
be reached, as after Port Arthur and
the leases of Lao Tung, which are
included in Article A, and which Mr..
White is undoubtedly prepared with
slight notifications to accept. comes
Article 5.--the session of Sakhalin,