The daily morning journal and courier., 1905-08-18
CRISIS REACHED IN
 PEACE NEGOTIATIONS
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(Continued. from First Page) those on the inside that was not sur prising. Things had gone smoothly enough, only the impasse had been reached-there had been the glint of cold steel in the conference chamber And the few words M. Witte had said to the foreign newspaper correspond ents were, as usual, not encouraging. He looked titred and said nothing had been accomplished.
 Tomorrow" he said, i've will finish articles Il and F."
 What then?'' he was asked.
 ''Then we will go to dinner,", he re- piled, as he excused himself to go to dine at Assistant Secretary Peirce's.
 No great hope was vouchsafed in the Japanese camp. "We are not buffers" said Mr.Sato and from an authoritative source the Associted Press correspond dent received adistictly bad impress sion regarding the outlook. It was coupled, however. with an expression of the hope that if it developed that the conference was going to pieces, Presi- dent Roosevelt might again step in.
 "We have heard that the president, having brought us together, has washed his hands of further responsibility. But he is resourcefui. He might do some thing" ~'s.fe't.
 "What?' .-'
 That I cannot say" .'
 The Japanese view was explained.
 We came asking only what we want ed. Our terms were moderate. The world thinks sos It looks bad. I say so. I believe So. But the conference may yet be saved from shipwreek. M. Witte has been gracious. He has done what he can, but he has a future at home to consider ,e'.
 A very irnportnt conference convened in M. Witte's room shortly after mid night. There were present Bron de Rosen, the other Russian plenipotenti- ary, and Messfs. De Martens, G6neral Yarnlaloff, MT Pokotiloff, MT. Shipoff | an Captain Roussine, the five Russian delegates. It is the first stime a full meeting of plenfpotentiaries and dele- gates has been held since the confer l ence began. The preliminary discus sion of the Japanese conditions is all ready virtually ended. It is not inn | probable that the final report and rec concentrations of the Russian pIenipo- tentiaries was passed upon and trans | mitted tonight to the emperor at Pet | erhof.
 | It can be stated that the individual views of the members of the Russian mission differ as to which point should be yielded if a compromise is to be l offered. Some favor surrender on Sak halin, others on indemnity. None are ready to give up both points.
 Texts of Official Statements.
 The official statement of the morning proceedings follows:
 At the morning session of the con ference of August 17 the plenipotenti. aries discussed article g. Not being able to reach unanimous decision, the conference decided to record the di- vergence of views, and proceeded to the discussion of the following article. Tht conference recessed until o'clock"
 The following is the official statement of the afternoon session of August IT.
 'In the afternoon sitting of Augus IT, articles 10 and il have been discuss | ed. Regarding article 10 the plenipo. tentiaries have shown divergence O l opinion which has not been settled. The discussion of. article Il has been reserv. ed for further discussion. The confer. ence has adjourned until tomorrow"