Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-08-26
THE PEACE SITUATION
Presidents InterCession Will
Prolong the Farley.
THEATTITUDE OF JAPAN
MUST UNDERGO CHANGE TO EE-
Feet A SETTLEMENT.
Disposition of SakhaHn Island the
Basis Upon Which Final Agree
ment Can Be Made.
THEATTITUDE OF JAPAN

PORTSMOUTH, N. H., August 26.-Presi-
dent Roosevelt's intercesson at Peterhof
and Tokyo has not been successful as yet.
but enough progress has been made to In
sure the prolongation of the negotiations
beyond today. certain result has been
achieved at St. Petersburg. but If there is
eventually to be peace Japan also must
change her attitude. The repurchase of the
northern half of Sakhalin Island still points
the clear road to the only possible compro-
mise, but It must be purely commercial
transaction. not claim for indemnity in
disguise
There had not been the slightest indica-
ton up to IL o'clock this morning that
Emperor Nicholas would recede from mis-
announced determination not to pay tribute
under any form And in the quarters most
competent to judge there is not the slight
est prospect OF a change
But If Japan would bend. II she would re-
nounce formally her demand for ''rem-
bursement for the cost of the war" by the
withdrawal OF the price she sets upon the
northern half of Sakhalin and frankly made
the proposition to sell the island on COM
mercial basis 1t is difficult to see how En-
peror Nicholas, having already acceded to
the other conditions proposed. could refuse.
Japan and Magnanim1ty.
Japan. 1t is argued. could afford to be
magnanimous to avoid wounding the sensi-
bilnies OF her adversary, and Russia could
with dignity come to an accord upon such
basis. Japan could not obtain what she
desires. perhaps. but the amount she could
secure from the sale added to what she
could obtain from the Chinese-Eastern rail-
road and the maintenance of the Russian
prisoners would certainly cover consider
able portion of the cost of the war.
The frank remuneration of the disguised
,I,fv, for frjn
strengthen also NJ. Whites position by
enabling him within the letter of his In
structions to press for the acceptance OF
such a solution.
There is reason to believe that NJ. Witte
himself has some such proposition in mind.
He is said to have stated to a friend that
he held in reserve final proposition which
If the Japanese refused to accept. he believ-
ed would make 1t clear to the world that
Japan. not Russia, was responsible for rup-
ture
Whites Proposition.
NJ. Whites proposition Is said not to be
Mr.. Roosevelt's 1t can also be stated that
unless an immediate solution is forthcom-
ing NJ Witte does not favor dragging on
the negotiations. Better for the cause OF
peace. in HIS opinion. to bring the confer
epce to an end.
Then he believes Japan would come to
full realization of the IA CT that an lndenlite
war involving immense expenditure
stares her in the face because she refused
TO renounce her desire to humiliate Russia
by forcing the payment of tribute. AS
skilled and trained financier NJ. Witte evil
IDENTIFY counts much upon the exchequer
argument
At u O'Clock one of the Russian attaches
was quoted as saying that kilograms had
been received from St. Petersburg, but they
contained no word which would permit M
Witte TO offer a counter proposition to the
japanese compromise, and that unless the
Nd va
ence was doomed and today Monday
would mark the final rupture.