The daily morning journal and courier., 1905-08-12
RUSSIAN REPLY ID THE
 JAPANESE PEACE TERMS
CANNOT CONSIDER AN INDEM- NITY OR THE CESSTON OF
 SAKHALIN.

Answer an Absolute NOn-POssimus on
 These Two Crucial POints-Pessim-
 ism Again Begins in the Camps of the
 EnvOys as Japan, It is Said, Will In-
 sIst Upon the Above Concessions
 witte Already Talking of His Plans
 When Rupture Comes.
 Portsmouth, N. H., Aug. 11.-Russia's reply to the Japanese terms of peace Will be delivered by Mir. Witte to Baron Kornura at 9:9O o'clock tomorrow morning. The reply is written, there being two texts, one in French, the other in English. Upon the two crucial points-indemnity and the cession Of the Island of Sakhalin-the reply is an absolute non-possimus. Other points are accepted as bases for discussion, while still others are accepted condi- tionally.
 The reply is rather long, because in enumerating the conditions upon which discussion is admitted and those upon which consideration is declined reasons and arguments are given. The Japan- ese plenipotentiaries are expected to ask for an immediate adjournment to ex- anime and prepare this reply. Mir. Witte will probably intimate that the Rus sian plenipotentiaries expect the Japan csc to display as much expedition as they (the Russians) have shown in the preparation of their response. Monday, therefore, is expected to be the day on which the real discussion will begin. Neither side wants to indulge in diplo- matic sparring. The time for fencing is over, and less than week must de- eide whether basis of peace is possi- ble.
 The tactics of the Japanese are in- scrutible. They have shown through out the war this ability to guard their secrets, military, naval and diplomatic, and now not the remotest clue comes from behind their closed doors as to whether they are prepared to make substantial concessions. Silence and secrecy are their watchwords. But if the conditions as submitted constitute their last word, hope of peace may be regarded as having disappeared, if the feeling reflected in Russian circles is a true criterion. And that no substantial concessions on the main issues will be made is the bslief both in Russian and Japanese circles.
 Tonight in the inner camps of both plenipotentiaries the deepest pessimism reigns. MT. Witte, it is positively known, believes the prospects of an agreement are remote as to be practir cally nil. He has no desire to prolong the agony, and instead of fencing when the plenipotentiaries come together aft CT the Japanese have had the opportu- nifty to examine the reply there is strong reason to believe he will not only welcome but will insist upon, an in- mediate discussion of all the proposed bases. So pessimistic is he that he has already been talking to his colleagues of his plans when the rupture comes. Before sailing for home he contem- plates brief visit to Chicago.
 That the Japanese terms, in so far as they touch the main points, will not be withdrawn or materially modified is the opinion of the most competent Japanese authority on the ground who will talk 1 for publication, namely, Julio Kunpei Matsumato, member of the Japanese parliament, who is here as a financial l