The Birmingham age-herald., 1905-08-11
WORD "INDEMNITY0 IS
 AVOIDED BY THE LAPS
Baron komura Is Very Polite In Ex- pIainine to M. Witte What They Expect as the Price
 of Peace.

sion of the island of Sakhalin constitute the main features of the peace conditions handed by Baron Komura to M. Witte at the conclusion of the morning session of the plenipotentiaries in the general stores building of the Portsmouth navy yard The word 'indemnity" is carefully avoided, the term employed being 'reim- bursement' for the cost of the war.
 No sum is fixed, the amount being dis tinctly adjourned for mutual adjustment between the two countries after the Jap anese expenditure has been aseertained These are the two all important condi- tions, and those which the Russian pien' ipotentiaries find absolutely unacceptable Unacceptable as they are, however, 1t ear be stated that these two present condi- tions did not come as surprise 10 the Russian plenipotentiaries
 Avoid the Word "lndemnity."
 The friendly fashion in which Baron Komura explained the conditions before handing them to M. Witte and the avoid ance of the use of the word Indemnity in the presentation of Japans bill for the cost of the war, without fixing a sum leaves the way open for negotiations and constitutes the main hope that ma agreement Is possible. Certainly the dan ger of sudden rupture, no matter what the ultimate result may be, is precluded pS today's developments. The other terms are substantially what the world ex- pected and with one or perhaps two ex' ceptions, could probably be entertained at A basis of negotiations. They include the following:
 Japan Wants But Little.
 The cession of the Russian lease to the Liao Tung peninsula, comprising Por' Arthur and Dalny The evacuation of the entire province of Manchuria: the retro cession to China of any privileges Russia may have in the province, and the re cognition by Russia of the principle o' the 'open door, The cession to Japar of the Chinese eastern railroad pelo" Harbin the main line through northern Manehuria to Vladivostok to remain Rus sian property. The recognition Of the Japanese protectorate over corea. Ihe grant of fishing rights to Japan In the waters of the Siberian littoral northwarc from Vladivostok to the Behring sea The relinauishment to Japan of the Rus sian warships lnterned neutral ports Finally, a limitation upon the naval strength of Russia in far eastern waters
 As a whole, the terms are regarded as exceedingly hard by the Russians. In addition to the two principal conditions which cannot be accepted under MT. Witte,s instructions those relating to the limiting of Russia's naval power in the far east and the granting of fishing rights upon the Russian littoral are considered particularly offensive to the amour pro ore of their country, and Of such humil- iating character as to be inadmissiple.
 Consider Terms Moderate.
 The Japanese on the contrary, as Baron Komura announced at the conference to- day. consider them moderate, contendlhR that they only represent u fair compensa- ton for the expenses Of the war, ana the victories they have achieved on land and sea their sole purpose being to attain the objects for which they have fought, the spoils claimed being only such as they are legitimately entitled to as the result of their military and naval sue oesses The Russian plenipotentiaries as soon as the Japanese terms were in thelr hands. called in the five expert delegates attached to the mission and spent tho whole afternoon In the consideration or inc terms. Meantime the conditions had heen placed fin cipher and cabled to Elm naror Nicholas with M. Wittes personal recommendations.
 Hope for Reply Today.
 It Ia honed that a reply will be received from the emperor tomorrow, In Whlch case M. Witte expects to have the Rus sian response ready by Saturday, but It is not unlikely that Saturday, being the f,rst anniversary of the birth of czare- witch. the presentation of the reply VIII he deferred until Monday. Meantime the nlenlnotentiaries will not meet unless some unexpected necessity for confer ence should arise.
 The Japanese plenlpotentiaries mani fest not the slightest annoyance at the nrospect of few days delay. They real ize how serious the issue Is ana are per- fectly willing to give their Kussian col leagues ample time for consideration. M. witte and Baron Rosen had yesterday aooantad an invitation to dine with As- a,atan, Secretary of State Peirce and in snite of their arduous duties at the navy yard today they kept the engagement.
 At 9 o'clock upon their return to their quarters at the hotel. they plunged again into their work and 'the lights In thelr room burned long after midnight. The pusaian and Japanese peni otentiaries denied themselves to callers, no state ments were issued, and only to a few were the Japanese conditions tnown.
 Japs Wanted Secrecy.
 The Associated Press learns from a most authoritative source that the ini- tjatiye of the decision taken by the peace conference to keep "in absolute secrecy The deliberations agreed upon by the plenipotentiaries" was proposed by the gaoanese representatives. The Russian representatives had no special interest ,n maintaining secrecy, but as the con- .a.arca is the reunion of two parties, the pnssians thinking that they had not the right of opposing the de- of the Jap
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