The San Francisco call., 1905-08-11
M1kado to Be Dominant Factor
Throughout the Far East.
HOPES TO RULE ALL CHINA
Tokio's Future Policy Revealed
IN Proposed Peace Terms.
INDEMNITY THE GREAT ISSUE
Special Dispatch to The Call.

| PORTSMOUTH. n. H, Aug 1O.-Jap-
ans peace terms require the cession of
! territory, the recognition of the principle
of money indemnity, the retirement of
| Russian influence from all of Manchuria,
the cession to Japan Of Port Arthur and
the Eastern Chinese Railway and the
independence" of Korea, under Jap
anese influence.
The territory to be ceded is of course
the barren island of Saghalien, now used
by Russia as a penal colony. The rrecog-
milton Of the principle of indemnity may
mean the cost Of the war, or it may mean
that the Eastern Chinese Railway, the
right and property of which are to go to
Japan, may count as indemnity. This
road cost its builders more than $500, ,000,-
600. l do not understand that the future
of Vladivostok was mentioned in the
terms.
CessfOn and indemnity are the ques-
tiOns in doubt. As to all else. there
probably will be no serious objection
by Russia. The Government is ready
to relinqufsh Manchuria and Japan will
be fixture on the mainland and will
be allowed TO extend her empire west
ward and southwark.
Japan has provided that she will no
longer have an antagonist in Russia on
the mainland or on the Sea of Japan.
have been merely fencing. Now will
come the real struggle. The situation
here is that even the Russian ENJOYS do
not know what will be done. This is due
to the situation in Russia. Everything
might be upset in night. l am inform
ed that, in case the money indemnity
agreed on is moderate, arrangements are
practically completed to have the money
furnished by capitalists in New York,
London and Paris.
That Japan shall be the recognized
predominant power in the Fnr East is
the gist of the entire document pre-
scented by Baron KOmura to Mr.. de
Witte to-day, no matter how OBVIOUSLY
the wording may be expressed. Dur
ing the stay of the Japanese party here
the clear intention of the MiIxadO's Gov
ernment to become the great power and
to rule I'm time not only Korea and
Manchuria. but all of China, was made
so evident that there could be no doubt
that it was on this great mission that
the Japanese envOys had come to Ports
mouth.
Japan, in the terms which she SUBJ
mitted to-day. will require the cession
of territory. Saghalien Island is certain
ly part of the territory that will be de-
manded. The demand may be in excess
of this, because the japanese have found
the mouth of the Amur River, and even
now they may have the Japanese flag
over kamchatka.
Japan does not mention the amount of
indemnity she will demand, but insists
on the recognition of the principle of in
demnity.
As whole these terms are regarded as
exceedingly harsh in the eyes of the Rus
SLAMS. In addition to the two principal
conditions, which cannot be accepted
under Mr.. de Whites instructions, there
are clauses relating to the curtailment
of Russian naval power in the Far East
and the granting of fishing rights upon
the Russian littoral. These are consd-
cred particularly offensive to the amour
propre Of their country and of such a
humiliating character as to be inadmis-
eible
The japanese, on the contrary, as
Baron Komura announced at the con-
ference to-day. consider them moderate,