The Birmingham age-herald., 1905-08-16
More Hopeful News Comes
 from Portsmouth
NEW PLAN IS SUGGESTED
Russia May Buy sakhalin And Pay Big Enough Price to Avoid the Unpleasant Word
 Indemnity.

Portsmouth. N. H.. August 15.-The crisis in the peace negotiations upon which the eyes of the world are fasten- ed, is approaching rapidly. and the end of this week or the first of next, at the least, should witness the deadlock and tho end. If the conference Is to go to pieces.
 Two of the twelve articles. Nos. and 6, were disposed of today. Article con- sists of mutual pledges to observe the integrity of China, and the policy of the "open door for the commerce of all na- tlons. and article 6 covers the surrender of the Russian leases to the Liao Tune peninsular Port Arthur, Dalny and the Blonde and Elliott islands To article 1, both parties gave ready assent. and the official statement of the adoption of that article took care to state that lt was agreed to unanimously" Article 5, the consideration of which was post poned until later, is for the cession of the island of Sakhalin. Discussion ap- bearing useless at this stage on account of the firm negative given in the Rus sian reply, 1t was decided upon the mo- tion of the Japanese to defer its discus- sion, thus revealing the Japanese inten- ton of postponing to the end the life and death struggle.
 Tackle Minor Issues First.
 This is the usual procedure followed in diplomatic negotiations, enabling the ne- gotiators to come to an accord upon all possible points before taclxing the crucial issues, and the fact that the Russians aequiesced In the proposition shows that they, too. are as careful and as anxious as are the Japanese that the world should not accuse them of being responsible for precipitating the break. and wrecking the conference.
 This in Itself is a. hopeful sign. Be- sides. by postponing the burning questions to the ende the psychological moment for bargain and compromise arrives. Then hurriedly the last trump cards and the game is done. And there is growing hope of compromise. To the closest observers. the final solution begins to crystalize quite naturally-the Russians yielding the cession of sakhain. Japan foregoing the cost of the way" but taking compensa- ton in the money to be refunded to Ja- pan by China on account of the Chinese eastern rallWay, Wnlcn HuSSld cOntenus belongs to a private corporation and therefore uncomfortable by Japan. the Russian government property in Port Arthur and Dalny, and remuneration for the maintenance of the 100000 Russian prisoners in Japan.
 Russian Side of Contention.
 According to the Russian view Japan has already secured all and more than she dreamed of claiming before the war To insist upon a foe who has still half million men confronting her in thc field footing the bill for the cost of th6 war as the price of peace, would. the Russians say, change the character of the military struggle henceforth from one for certain principles to one for tho exaction of blood money" All questions relating to Corea and Manchuria except the cesson of the Chinese eastern rail- road,. and the main Siberian line run ming through Northern Manchuria from the station 'Manchrla" on the Arnur via Harbin to Vladivostok are settled in tha articles already adopted. Some confusion has arisen about these articles. but the following result can be accepted as cor rect:
 Articles Under Discussion.
 1. Recognition of Japan's preponderating influence in Corea, etc.
 9 Mutual obligation to evacuate Man
  special privileges etc
 3 Japanese obligation to restore the sovereignty and administrator of China in Manchuria.
 l. Mutual obligations to respect the ter rltorial and administrative integrity Of China and the principles of the "open door"
 .. The surrender of the Russian leases 10 the Llao Tung peninsula, including Port Arthur Dalny and the Blonde and Elliot islands.
 The remaining even articles (not given in numerical order are:
 The cession Of Sallhalin: reimbursement for the cost of the war: the cession to China of the Chinese Eastern railroad. the article relating to that portion of the main line of the Siberian railroad run ming through Northern Manchuria. which includes provision for policing of the road by China and not by Russia; fishing rights off the Siberian coast north of to the Behring sea. the arr ticle affecting Russia's naval power In the far east. and that providing for the of the Russian war ships in- termed In far eastern waters.
 To all of these Russia has more or less objections
 MT. Witte Will Oppose.
 Besides indemnity and Sakhalin, M. Witte will strenuously oppose the sur render or the interneu WaTSfnpS, the lfn- itation upon Russias naval power and the cession of the Chinese Eastern rail- road to China. The article relating to the Chinese Eastern railroad Is No. 2, and comes up at the session tomorrow morn ing. The Russians are prepared with documentary evidence if the article 10 not passed over to show that the railroad fig private corporation owned by ths Russo Chinese bank NJ. Pokotiloff, ono of the Russian delegates. manager of the bank in St. Petersburg until few months ago when he was sent to Pekin minister upon the death of M. Lesser.
 NJ Bergen, the attorney of the bank. Is also here and the light upon this subject is sure to prove interesting and possibly prolonged. as Russia will con- test the Japanese contention that the Russian government is the real owner of the road. and that 1t was built for pure ly strategical purposes.
 Accuse Each Other of Talking.
 The only jar in the sessions Of tho conference today occurred at the morn