Show ff japan must cease to demand ache cosec of the wara or conference result in complete Com piete CZARS ULTIMATUM aug 26 the emperors ultimatum Is that rus sla will agree to the division of the island of sakhalin Sak halin and anore liberal payment shall be paid to the japanese for the care of russian prisoners but that no indemnity shall be paid portsmouth N H aug 26 president Roosevel ts intercession at pe and boklo has not been successful as yet but enough progress has been made to secure the prolongation of the negotiations beyond today A certain result has been achieved at st petersburg but if there is eventually to be peace japan also must change her attitude the repurchase of the northern halt of sakhalin Sak halin still points the clear road to the only possible compromise but it must be a purely commercial transaction not a claim for indemnity in disguise there has not been the slightest indication up to 10 a m that emperor nicholas will recede from his determination not to pay tribute under any form and in the quarter most competent to judge there is not the slightest prospect of a change but it japan would bend if she would renounce formally her demand for reimbursement tor the cost atthe war by the withdrawal of the price she sets upon the north half of sakhalin Sak halin alfi frankly make the proposition to beell the island on a commercial basis it is to how emperor alcho jaa acceded to the other con proposed could refuse aels one of the russian at quoted as saying that telegrams had been received from st petersburg burg but they contained no word would permit mr watte to offer 0 o to the japanese compromise and that unless the japanese had a new proposal the conference was doomed and today and lion liay would mark the final rupture japan t is argued could afford to be magnanimous to avoid wounding sensibilities of her adversary and sla could with dignity come to em accord upon such a basis japan not obtain what she desires per but the amount she could etame sale of added to what lie could obtain from the chinese eastern railroad and the maintenance of tha russian prisoners would cover a considerable portion ot the cost 0 the war the frank re of the disguised claim for indemnity would greatly strengthen atta wittes position by enabling him within the letter of his instructions to press tor the acceptance of such B solution there is reason to believe that mr witte himself has some cuch proposition in mind he is said tto have stated to a friend that he in reserve a final proposition which it the japanese refused to ac he believed would make it clear 40 the world that japan not russia was responsible for the future mr wittes proposition Is said not to be mr Roosevel ts it can also be stated that unless an immediate solution is forthcoming mr watte does not favor dragging on the negotiations better for the cause of peace in his opinion to bang the conference to an end then he be aseves japan would come to a full realization of the fact that an indefinite war involving an immense expenditure stares her in the face because the refused to renounce her desire to humiliate russia by forcing the payment of tribute As a skilled and drained financier sir watte evidently counts much upon exchequer anent NO MONEY NO WAR paris aug 26 premier had a long talk at the foreign office today with M josserand Jus ambassador to the united states its nature has not yet been disclosed it la probable that it related to american affairs and to ha general status of the negotiations at portsmouth however the government la not giving any ward signs of activity tn connection with the peace conference owing to the sensitiveness of french relations with russia information from officials at st petersburg shows that ambassador mayors meeting with the lasted only ten minutes and was not productive of notable results the brevity of the meeting Is looked upon as an unfavorable sign nevertheless government circles believe that rus sias inability to raise more money tor war purposes will prove a decisive factor in compelling the conclusion of aleace since the french bankers re recently refused a new loan oh account oatho uncertainties of the war their attitude has become more i against a prolongation of ohp this la due to the dangers 1 i in the enormous french holdings of russian securities should war go on indefinitely therefore paris money market is oft for more war funds it Is the view of the highest court officers that peace has strong chanced of realization through the financial russia to continue the war Thea bourse today became sensitive PEACE conference T j portsmouth mouth N ri A i y bession of the peace conference scheduled for 3 today began seven minutes after that hour the russian plenipotentiaries reached the navy yard in their motor car shortly before the japanese were three minutes behind the russians in arriving over unfavorable reports from portsmouth russian fours declining sixty centimes cen times and bonds of losing a franc the market closed weak owing to the depression in russian securities curi ties KAISER FAVORS PEACE berlin aug 26 the associated press today received the following communication from the foreign office the foreign office empowers the associated press to declare that all reports of the opposition of the emperor to the mediation of president roosevelt are absurd the emperor regards the endeavors of the president with admiration and takes the greatest interest in the success of the labors for peace in whose beginning the emperor personally assisted |