The daily morning journal and courier., 1905-09-01
RAPID PROGRESS WITH
 THE TREATY OF PEACE
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CContinued from First Page) -z@@s -.a,.. yg4 s.-t z{ Ss---sr possible for the two powers to deter mine conditions of peace. This irn- portant mission was entrusted to M. Witte and Baron Rosen, who received full powers, by virtue of which they could, in the event of the acceptability of the Japanese proposals, proceed to the conclusion of a treaty Of peace. It was mutually agreed that the, regotia- tions should take. place in American territory, u s The first interview between the plenipotentiaries took place at Oyster Bay on August [, and the conference opened at Portsmouth on August 3.
 .;; At. the second sitting the Japanese plenipotentiaries presented the condi- tions of peace as elaborated at Tokio,
 Considering that several of these conditions, were absolutely unacceptable owing to the instructions given the Russian plenipotentiaries, and that the wording of the other conditions were interpretable as detriment to Russian interests, NJ. Witte proposed detailed discussion of each point separately.
 Having devoted several sittings thereto, the Russian plenipotentiaries came to the conclusion that an agree ment was unattainable on four points, whereupon the Japanese plenipotenti- aries declared their willingness to ask for complementary instructions with the view of finding conciliatory out come to the serious difficulties that had arisen.
 After communicating with Tokio the Japanese plenipotentiaries intina ted that they renounced, firstly, the ques- ton of the limitation of the Russian naval force in the Far East and, sec- ondly the demand for the surrender of the interned warships, but they con- tinued to demand the cession of the island of Sakhalin, and especially the payment of an indemnity. ~,
 "In accordance with the instructions they had received. the Russian .plenipo- tentiaries positively rejected these last demands, declaring that they could not continue to discuss the other condi- tions of peace if Japan continued to insist on the payment of the expenses of the war. Taking into consideration that such state of the negotiations coud noly lead to a. rupture, President Roosevelt decided to address himself tc the emperor through Ambassador Mey- CT. Appealing to his nhajesty's humani. tarian sentiments, and asking the con sent to accept a new Japanese proposal in order to avoid further bloodshed This proposal was that Russia, in view of the actual position of Sakhalin, or1 account of the Japanese descent oh the island, agree to cede to Japan the south ern part, belonging to her up to 1875 the northern port to be returned to Russia in consideration of the payment of 1,2O0, 0,O00,OOO yen (about S6O0,0Oo,OO0).
 In expressing to President Roosevelt his gratitude for the efforts made to aid in restoring peace, his majesty said he could not find 1t possible to accept the aforementioned proposals, which were, de facto, equivalent to the pay ment. of an indemnity.
 ''The Japanese plenipotentiaries were informed of his majesty's. decision by the Russian plenipotentiaries, and they announced at. the sitting of August 2s that, according to instructions from their government, Japan renounced hei demand for reimbursement of the ex. penses of the war, but adhered to iei claim for the southern part of Sakha. lin, undertaking not 10 take military precautions therein, not to construct Notifications and to keep LaPerouse strait open.
 Thus, after the above had been in- serted in the protocol the sittings of the plenipotentiaries were terminated, SC far as regards the preliminary ques tions looking to peace, which will serve as the basis af final treaty of peace between Russia and Japan"