Show RUSSIA WILL NOT PAY INDEMNITY Nevertheless Japan Will Insist Upon All the Demands Presented Poor Prospects of Peace so Long at Japan Insists Upon Russia Paying All the Expenses of the War Portsmouth N H Russias reply to tho Japanese terms has been delivered de-livered by M Witte to Daron Koinura The reply Is written there being two textsone In French tho other in English Upon tho two crucial points indemnity and tho cession of tho Island of Sakhalin tho reply Is an absolute ab-solute nonposslmus Other points are accepted as basis for discussion while others are accepted conditionally The reply Is rather long because In enumerating enu-merating conditions upon which discussion discus-sion is admitted and those on which consideration Is declined reasons and arguments aro given The Japanese plenipotentiaries aro expected to ash for an immediate adjournment to examine ex-amine and prepare their reply M Witte will probably intimate that the Russian plenipotentiaries expect the Japanese to display as much expedl tlon as they tho Russians have shown in the preparation of their response re-sponse The tactics of the Japanese are inscrutable in-scrutable They have shown throughout through-out the war their ability to guard their secrets military naval and diplomatic diplo-matic and now not tno remotest clue comes from behind their closed doors as to whether they are prepared tc make substantial concessions Silence and secrecy are their watchwords But if the conditions as submitted constitute their last word hope 011 peace may be regarded as having disappeared dis-appeared It the feeling reflected In Russian circles is a true criterion And that no substantial concessions on the main issues will bo made is the belief both in Russian and Japanese circles |