The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-08-18
ENJOYS Ask Cable instructions,
and Monday May End
the Conference.
Indemnity is the ROCK.
informed Ships and Naval Limit
Also Stumbling Blocks.

Yesterdays Discussion Brought the Be
ginning Of the Crisis-Both Sides De-
clsred to BE Unaiterably Determined
in Their Original Position Regarding
Remuneration--A Compro mise on
sakhalin Said TO Have Been Reached
Charged That Russia Began Nesotil.
lions Only to Please President Roose-
welt and to Learn Japan's Terms.
PoRrsMouTH, N. H.. Aug. l7.-To-mor-
row tho peace conference will be adjourned
until Monday to give the Russian and the
Japanese ENJOYS an opportunity to COM
municate with their governmental.
Judged by to-day's developments and
an expected repetition tomorrow, Mon
days meeting will bring matters to head
and the world will probably soon know
whether there is to be peace or . continue
ton Of the war In the Far East.
Both sides have refused to compromise
on the matter Of indemnity, the one great
stumbling block to q successful termina-
ton Of the negotiations.
Other points Of difference exist also, but
on the subject Of Japans demand that
she be remunerated by Russia for tho costs
Of tho war there is hard and fast dead
lock.
In that lies the danger Of absolute failure.
and from all outward appearances the
prospects OF happy ending are not the
best.
oossIps SAY rT's ALL OVER.
Tonight the gossip In the lobby, the ball.
room and the corridors Of the Wentworth.
whore the peace plenipotentiaries and their
suites arc stopping, IL that the whole thing
is over.
It Is maintained that the Russian commits
sioners came here fully determined not
to make an agreement. They are accused
Of having played the game merely to ascer-
tain Japan's conditions. 1t is maintained
that II the President Of the United States
had not insisted upon it they would not
have come at all.
Mr.. witte is telling his friends that the
outlook Is hopeless. He sees not the slight
est chance for an understanding.
In the consideration Of the indemnity
proposition, no specific amount OF money
was mentioned, the discussion proceeding
along general lines relating mostly to the
reasons advanced by the japanese ENJOYS
for claiming remuneration and those Of the
Russians for holding that they would not
nav. The japanese we're obdurate, exhibit
ine an unoompromising attitude, and to this
more than to anything else ia attributed
the confident feeling among the Russians
that the negotiations have practically come
to q futile end.
I'VE might as we'll have talked to stone
walls as to tho Japanese, said one promi-
nent member OF the Russian mission to-
night.
Those who profess to know the temper
Of the Japanese ENJOYS and the reasons
that pnderlie their demands assert that
japan will never recede from her indem-
nifty proposition. But it may be properly
asked who really does know the Japanese
plansp Only few men at Toxic, the
ENJOYS themselves and their immedia to,
confidential assistants. Yet none Of these
ia saying a word, except the admirable Mr..
Sato. And all that Mr. Sato says is:
.The prospects for peace are as good az
ever"
Abandoning the field Of speculation. for
speculation is a dangerous thing in these
critical hours when the peaoe Of a con-
siderable portion Of the world seems to hang
in the balance, there is enough Of fact at
hand to give some intelligent idea Of the
situation.
THE nEaINNINd or THE Crisis.
To-day's Developments marked tie be.
ginning Of the crisis in tho negotiations.
The main point discussed was the re-
muneration proposal Of Japan. Each sido
chung tenaciously to it's position, and it be-
came apparent that there was nothing
to be 0ained by further discussion at this
time.
Then came the question Of Japans de-
mand for the possession Of the Russian
ships interned at American and Chinese
ports, but there was such a divergence OF
views that the ENJOYS decided to lay II
aside temporarily without recording that
they were unable 10 agree.
There was some discussion Of Japan's
insistence upon the limitation of Russia "a
naval armament in the Far Eastern waters
but this had not been concluded when the
conference was adjourned for the day.
Two official bulletins furnish some in
sight into the deliberations, and the year
given herewith. The reader should keep
in mind that Article TX. Ia the indemnity
proposal, Article K the matter Of interned
ships and Article XI. the proposed limita-
ton Of naval strength. Article XII. which