Pine Bluff daily graphic., 1917-12-23
Diaz' Troops Hold Teutons and Regain Ground
 Lost Last Week.
ROLSHEVIKI LOSE GROUND IN RUSSIA
Leader Worried at Growth of OppOsi- tiOn-Rep0rt Peace Conference Fails to Satisfy Russians
 and Is On.
Associated Press SummarY.)


 Not only are the Italian lines hold- ing in the Monte AsalOne region, on the northern front, where a threaten ing salient was driven in them early last week. but considerable progress has been made toward restoring the original line. This progress, begun by the Italians Thursday, was con tinued Friday. The Rome War Office reported the capture of ground in the hotly disputed area. The Austro-Ger- man command evidently had in mind expansion of the Asalone wedge in way further to imperil the entire Monte Grata position, to the east. The Italian bulwark, against the intended drive, and this possibility still re- mains. The Italians, however. have negatved much of the enemy advan- tage, and even German accounts of the fighting concede that for the pres- ent aggressiveness is on the Italian side, with the Asalone height the ob- ject of repeated attacks.
 There has been no fighting of con- sequence in any of the other war areas. Even artillery battles along the French front appear to have les sened in intensity. and there has been no indication of q revival of infantry activity in Upper Alsace, where 8 German demonstration Friday gave the enemy a temporary advantage, quickly wiped out by aggressive French reaction.
 In Russia the strife for control is assuming broader aspects. The ap- parent qualification of the Ukraine Cossack movement in Southern Russia seems to be giving the opposition to the Bolshcviki firmer hold on that territory. The Petrograd commits sioners themselves are considerably worried by the spread of the separatist movement, which is cutting huge slices off Russian territory, mot only in the direction of the Ukraine and the Don region, but in various other quarters. Evidence of this appears in their send- ing emissaries to the numerous af- fected districts in an effort to line them up again.
 Report Peace Meet Off.
 The status of Russia's peace negotia- tions continues uncertain. Reiterated reports are coming out of PetrOgrad that negotiations were broken off be- cause of the objectionable nature of German terms, and that the Russian representatives have left BrestA Litovsk. Some hint that the Teutonic offers were not of acceptable nature the Bolsheviki expected, and that they may be found in a declaration by Leon Trotsky, Bolsheviki foreign minister, that the Russians would fight rather than submit to objectionable terms. This was coupled, however, with what appeared to be an admission of Russia's present military importance and the assertion that if the Russias were thus compelled temporarily to resist they would join with German people in rising against German militarism.
 The Admiralty announced the loss of the British armed steamer stephen Furness, of 1,712 tons, torpedoed and sunk by a German submarine in the Irish channel, with the loss of six officers and 95 men.
 The fire at the great Krupp munf- ton plant at Essen appears to have been less serious than early reports indicated, apparently damage was con- fined to the electric power station. where an explosion occurred, due to short circuit. This building is re- ported from Dutch sources to have been seriously damaged.