New-York tribune., 1905-08-12

(From Special Correspondent Of The Tribune)
Portsmouth, \. H., Aug. 1.-THE crisis in
the peace conference is close at hand and yes
terday's optimism has given place to fOrebOdings
respecting the outcome. NJ Witte without con
sultation with the Emperor, has formulated an
answer to the Japanese proposal in which GER
tain of the Japanese terms. that, it is feared,
will be regarded essential by the Japanese
ENJOYS. rejected in terms which almost pre-
clude further discussion. This may be stated
ON the highest authority. Some of the Japanese
proposals. 1t is true have received favorable
consideration. but. as it is learned from re-
liable source that Japan is determined not ma
terially to modify her demands the critical
character of the situation must be recognized.
1t is learned that the Russian ENJOYS hold that
Japan has entered the conference under the
erroneous impression that Russia is suing for
peace whereas according to the Russians. that
country is not a suppliant, but has merely sent
her ENJOYS TO meet the Japanese plenlpOtentiary
at the invitation of the President with the pur-
pose of perfecting n treaty with Japan. Russas
resources are not exhausted. it is asserted. and
only a radical modification of the attitude of the
Japanese ENJOYS can prevent a total failure OF
the conference.
Throughout the day the utmost secrecy has
been preserved by both parties to the confer
ence regarding the Japanese terms but this
evening it was officially stated by NJ. KOrOsko-
vitz. on behalf of the Russian delegation, that
Japan while avoiding the use of the term in
demnity.' demanded reimbursement of the cost
of the war; such cost TO be determined by such
machinery as might later be provided, and that
other provisions in the Japanese terms referred
to fisheries, the naval strength of Russia on the
Pacific and the ultimate ownership of interned
ships.
1t is further learned that Japan demands the
cesSion of SaghaIien and makes certain stipula
tons regarding VladivOstok. presumably its vir-
tual naturalization. These. together with Japan's
attempt to restrict Russia's naval forces ON the
Pacific. appear to present the greatest obstacles
td the Russian mind and it is probable that
even defrayment of the cost of war would be
acceded to more cheerfully than the cesson of
territory although it was only by the treaty of
1908 that Japan relinquished her claim to the
island
This claim was based on priority of discovery.
and only yielded by Japan because Of her I'M
preparedness to cross swords with her more
powerful neighbOr.
Unauthoritatve but fairly reliable reports are
TO the effect that Japans terms provide further
that possession of the Manchurian railroad
shall be left TO China and that JapaG's pro-
tectorate over Corea shall be recognized.
While the impression given by VI. KOroskovitz
was that there would follow extended negOtia-
tions affecting most of the Japanese proposals,
II is undeniable that the view is entertained
higher up" that Japan is likely to refuse TO
recede from those conditions which in the est-
nation of Russia wholly Incompatible with
her dignity.
The reply of the Russian ENJOYS will be sub
mitted ct a session of the conference to be held
at $50 o'clock tomorrow morning.