The Minneapolis journal., 1905-08-16
LAND And Cash
DEMANDS NEXT
Peace ENJOYS Will Soon Reach
Chief Points at Issue Between
the Belligerents.
CHINESE RAILROAD
IS NOW IN DISPUTE
Komura and Witte Will Wrangle
ALI Day Over Article z
Of Jap Terms.

Portsmouth, N. H., Aug. 16.-The cri-
Sis IN the peace negotiations of Russia
and Japan is almost at hand. All that
remains to be discussed seems more or
pan, as is generally believed, is ready
to yield on the question Of limiting
Russia s sea power in the far. east and
surrender of the interned warships, it
would only be in return for a satisfac-
tory agreement on the issue Of Sag
ha-ilen and indemnity
Yesterday the Japanese sent cable
grams costing thousands Of dollars to
Toxic. AS result of the conduct of
apparently changed their view about
a formal armistice should the "bases"
Of agreement be obtained. It is known
they gave President Roosevelt to un-
derstand that, once the "baseso of
treaty were agreed to, they would be
ready to conclude military truce; but
they now seem to be distrustful Of the
that the arrangements of final details
would be expedited if no armistice
were made.
Disputing Over Railroad.
The morning session of the peace
commissioners today ended at 'clock..
During the entire time the discussion
was upon article Of the peace terms.
| This article, covering the question Of
cesslon to China of the Chinese eastern
railroad, which runs south from Harbin
to Port Arthur, and Dalny with spur
! to Nlu- -chuang, where it connects with
the Shan hai-kwan- -Hien-tsin road, was
conditionally accepted by the Russian
reply, but agreement to 1t was bound
up with consideration involving the
fate OF the whole negotiations.
Not Admitted by Russia.
Russia will not admit the Japanese
contention that the road is wholly a
government institution, as all the
shares of the railroad corporation are
owned by the Russo-C Chinese bank. The
government IS interest in the road, how
eyer, will probably. not be denied, but
/ it will be- urged that so far as it is
i private property it is not confscable.
backed up by evidence. Mr.. Berg, the
vice director and attorney of the Russo
| Chinese bank, while here attached to
the mission as one Of Mr.. Witte g secre-
| taries, is also here to protect the in
| terests Of the bank.
Gear Will Give Up Road.
Nevertheless, in the long run, Russia,
it can be regarded as certain, is pre-
pared to give up the road, remunerat-
| ing the Russo Chinese bank if ,hecessa-
ry, as with the loss of Port Arthur and
| Dalny, and the evacuation Of Manchu-
ria, it's raison 'etre for strategic and
military purposes ceases. Its surrender
to China, however, involves large
monetary profit for Japan, which car, can
China For the restoration Of the road,
the rebuilding Of the bridges and the
| change in the gage.
It will be for China and Japan to ar
range this. but however adjusted the
money which Japan will obtain might
be a partial remuneration for the
| cost Of the war which she demands
from Russia and constitutes, perhaps,
the line of ultimate compromise it
treaty eventually is signed.
+ Agreement to Be Deferred.
It is quite likely. therefore. that
agreement on the article after discus
sion will be held in allegiance until later
and will be settled in the final exchanges
of views. 'E.
There are other reasons why this will
probably be the case. The main line
of the Siberian railroad thru northern
Manchuria to Vladivostok, which Rus
sia will insist on retaining, connects at
Harbin with the Chinese Eastern. and
the commercial value Of both roads will
ultimately uepenu Oh tHeiI tIaHlc ar
rangement and their method Of opera
tion and cooperation. AS the system
together now constitutes the world s
swiftest highway from Europe to the
orient, the matter is very complicated
and will require much time for final
detailed adjustment.
The article relating to the main line
of the Siberian railway thru northern
Manchuria, which is believed to be num-
Der eight of the peace conditions, con-
templates its retention by Russia, but
! 1t is believed provides for its policing
solely by Chinese police. On account
Of the Chinese brigand bands (Chun-
, chuses) which infest Manchuria and
Mongolia, the strength and number Of
!. which has been greatly increased by the
war; Russia will probably object siren
uously to this provision on the ground
: that Chinese protection will prove in
efficient and the great highway will be
in constant danger.