The Cairo bulletin., 1905-08-15
Fl&iIIk,. =.
In Peace Negotiations Will
Come Today Over
Sakhalin
RAPID PROGRESS MADE
RUSSIA AGREES TO THREE OF
JAPAN's TWELVE CONDITIONS,
ONE OF WHICH is THE cES-
SION OF CHINESE ROAD.

Portsmouth,, Aug. 14-Although very |
rapid progress was made with peace |
negotiations today three of the twelve
articles which constitute the japanese
conditions of peace having been
agreed TO by the Russian ENJOYS.
neither of the two articles to which
Witte in his reply returned an abso-
lutte negative was reached.
The crisis, therefore, is still to come.
1t may be reached tomorrow as the
cess,on of Sakhalin comes fifth in the
list The shree articles" as they are
officially designated in the brief com
municatiuns authorized to be given to-
the press, which were disposed of
today, are in substance as follows:
First-Russia's recognit on of Jap.
ans 'preponderating influence and
special position in Korea, which Rus
sia henceforth agrees is outside of her
sphere of influence, Japan binding
herself to recognize the suzerainty of
the reign ng family, but with the right
to give advice and assistance to i'm
prove the civil administration of the
empire
Second Mutual obligation to evac-
uate Manchuria each to surrender all
special privileges in that province. mu-
tual obligation 10 respect the terri
torial integrity" OF China and to main
tain the principle of equal apportuni-
ty for commerce and industry of all
nations In that province tcpen door,
Third-Cession to China Of the
Chinese eastern railroad from Harbin
sonthwara
Mo Question Of Above Points.
There never was any question about
n tfsp acceptance as ;sa pa3. Of Vito
Of tfese articles, the Htst two COW
ering in a more emphatic form the
contentious of Japan in the diplomat
ic struggle which preceded the hos
tilities. The third is natural conse.
quence of the result of the war The
cession of the railroad, the building
Of which cost Russia between ST. ,000,-
600 and $2,00o,0O0 IL to China. Japan
and China, therefore, will arrange be-
tween themselves the method by
which the former Is to be remunerated
and through this financial operation
Japan might have very considerable
portion OF her claim for Expenses of
the war Iiquidated.
Belong to the Bank.
The railroad Ii ostensihly the prop
erty of the Russan-Chnese bank, al
though built by government money adj
yanced through the bank and since it's
completion operated, managed and po-
liced by the Russian government. Jap
an cannot take the railroad herself.
To place herself in Russia's shoes re
garding the railroad would be militar-
lily to control the destinies of Man
churia, which she has promised to re-
turn to China But Japan Is entitled
to reimbursement for the expense TO
which she has been put In restoring
the railway below the present posi-
tion of Linevitch's army, rebuilding
the bridges and narrowing the guage.
If China could not find the money
some other power or powers might do
so and the road would become hy-
pothecated to the powers which ad-
vanced the money as other Chinese
roads ara to those which advanced the
money for their construction. 1t was
Witte himself who organized the Rus.
so-Chinese bank in 1895 and who has
always been considered the real or
ganizer Of the Chinese Eastern com
pany. Mr.. Berg, attorney of the Rus
so-Chnese bank which owns practi
cally all, if not all, of the shares Of
the road, is attached to the Russian
mission.
Sessions Were AmicahIe.
Both sessions Of the conference to
day are described as "amicable.'
There were several slight jars, but
none of them serious. Tomorrow il
the ordinary course of proceeding:
the first great stumbling block tc
peace should be reached as aftel
Port Arthur and leases of Lao Tung
which are included in article four
and which Witte Is undoubtedly pre-
pared with slight notifications, to ac
cept, comes article five-the cession o
Sakhalin. But II is by no means Ger
tain that when this obstable Is reach
ed 1t will not be postponed until al
articles upon which agreement i
easy or possible are disposed of.
II this course Is followed. and tht
Associated Press has high authorit,
for the opinion that II will be, it viii
indicate disposition to put off tht
real struggle ID the very last, and TIL
longer the conference endures TIL,
brighter the prospects Of treaty ar
likely 10 become. Every day the
Sit said a very high authority, "in
creases the chances Of peaces.'
Witte Won Victory.
In the discussion of the second al
icle covering the evacuation of Mar
churia). IL is positively stated that Rus
sia won a victory. Komura, SO IL l
declared. wanted to limit the abliga
tion to evacuatc MAnchuria and to sui
render special privileges IN the pro,
N fI