The Birmingham age-herald., 1905-08-15
Would of Course Expect to
 be ''RemuRcrattd''
ENVOYS VERY SECRtTIvt
St. Petersburg Thinks Both Sides Must Recede Materially Before Peace Is In sigt.-Praotlcai Arnistice
 is Effort.

Portsmouth, N. H., August 14-Al- though very rapid progress was made with the peace negotiations today three of the twelve articles which constitute the Japanese conditions of peace having beena greed to by NJ Witte and Baron Roson on behalf of Russia, neither of the two articles to which NJ. Witte in his reply returned an absolute negative, was reached. The crisis, therefore. is still to come. It may be reached tomorrow as the cession of Sakhalin comes fifth in the list
 The "three articles as they are of ficially designated in the brief communl- cations authorized to be given to the press which were disposed of today are in substance as follows:
 T. Russia's recognition of Japan's pre- ponderating infiuence,' and special posi- ton In Corea. which Russia henceforth agrees as outside of her sphere of in- fluence. Japan binding herself to reeog- nize the sovereignty of the reigning fam fly with right to give advice and as- sstance to improve the civil administra- ton of the empire.
 "2. Mutual obligation to evacuate Man. churia, each to surrender all special privileges in that province, mutual obliga- ton to respect the territorial integrity of China and to maintain the principle of equal opportunity for the commerce and industry of all nations in that province (open door).
 "3 The cesslon to China of the Chinese Eastern railroad from Harbin south ward"
 No Trouble About First Two. There was never any question about the acceptance on the part of M. Witte of these articles the first two covering in more emphatic form the contentious of Japan in the diplomatic struggle which preceded hostilities. The third Is na- tural consequence of the result of war. The cession of the railroad, the building of which cost Russia an immense sum, estimated by some at between $10o,O0o0Oo anu s20o 900, GOO, Is to China. Japan and China therefore will arrange between themselves the method by which the former is to be remunerated and through | this financial operation Japan might save considerable portion of her claim for the "expenses of the war llquldated. The railroad Is ostensbly the property of the Russian Chinese bank, although built
 
 the bank and since it's completion oper- ated. managed and polced by the Rus sian government. Japan cannot take the railroad herself.
 To place herself in Russas shoes re- garding the railroad, would be militarlly to control the destinies of the three provinces of Manchuria, which she has promised to return to China. But Japan is entitled to reimbursement for the ex- tn hQ mt in ra- storing the railroad below the present position of Linevtchs army. rebuilding the bridges and narrowing the gauge. othor Powers Have Money. If China could not find the money some other power or powers might do so, and the road would become hypothecated to the powers which advanced the money as other Chinese roads arc to those which advanced the money for their con struction. It was M. Witte who organ zed the Russo-Chnese bank in 1895, and who has always been considered the real organizer of the Chinese Eastern com pany. M. Berg, the attorney of the Russo-Chinese bank which owns prac- tically all if not all of the shares of the road, Is attached to the Russian mis- sion.
 Both sessions of the conference today are described as "amicable." There were several slight jars but none of them serious. The plenipotentIares are show ing admirable temper. The change in the weather may be partially responsible for the serenity manifested at the con ference table, but 1t would be perhaps too much to say that the fate of such gigantic negotiation had been affected by few degrees of temperature and 6 few thousand mosquitoes.
 First Great Stumbling Block
 rrx.. f.. .f proceedings the first great stumbling block to treaty of peace should be reached as after Port Arthur and the leases of Liao Tun1. which are Included in article 1. and which M. Witte Is un- doubtedy prepared with slight modifica- tons to accept. comes article 5. the ces- sion of Sakhalin. But 1t Is by no means certain that when this obstacle Is reach ed 1t will be postponed until all the ar ticles upon which agreement Is easy or possible are disposed of. If this course is followed, and the Associated Press has high authority for the opinion that 1t will be, 1t will indicate A diposition 10 put off the real struggle to the very last, and the longer the conference en- dures the brighter the prospects of treaty are likely to become.
 Every day they sit" said very high authority. increases the chances of peace"
 MT. SdtO tOid tne AsSOcldteu frtSS cur respondent tonight that he had come to Portsmouth hopeful of a successful is- sue of the negotiations and that nothing hado ccurred to alter his optimism.
 VIII Form the Text.
 The language of the three articles adopted today will form probably the text of the treaty of Washington If one is signed, subject of course to a final re- vision. Each side has agreed to the articles and they are included In the protocols of eacl days session which are officially signed by the plenipo tentiaries the next morning.
 Tn addition to the minutes kept by each side, there is an abbreviated record of the discussions giving the arguments on each side of every point which are daily attested so that when the conference Is ended the record of the proceedings will be complete. Of course the agreement. ar ticle by article. does not bind either Rus sia or Japan until final agreement is reached and the treaty signed
 If is. however, significant that MT. Sato while specifically stating that he did not ----~----~---~~---