Show peace envoys are unable to come to terms START FOR conference portsmouth N H august 17 the peace conference began at this morning tho envoys were served breakfast at the naval stores building preceding the session tt the peace plenipotentiaries who have alternately sheltered sweltered ered and chilled shivered and been soaked seemed in fine spirits when they started from the hotel today host of the japanese mission were so busy in preparing cables last night that they were in consequence a littas behind the regu lar time in getting down stairs this morning it was before mr takahara lra followed by baron komura and mr sato came down the veranda and received the usual respectful greetings from tha guests who invariably gather to see them the russian envoys were halt way to the navy yard when the japanese set out portsmouth N H august 17 the peace plenipotentiaries adjourned for lunch at 1230 having spent the entire morning discussing no 9 which it is believed includes the question of japans reimbursement for the cost of the war no agreement was reached and commissioners temporarily laid it aside and proceeded to discuss the following article the official statement of tha proceedings ce follows at the morning session of august 17 the plenipotentiaries dh cussed article 9 not being able to reach a unanimous decision the conference decided to record the divergence of views and proceed to the discussion of the following article the session then recessed until 3 the mornings discussion developed an absolute impasse both sides wera obdurate neither would budge or yield an inch agreement being found to be the plenipotentiaries decided to spread on the record their respective views and proceed to tha consideration of article 10 which provides for the surrender to japan of the russian warships interned in far eastern waters aliis article was debated until 3 when recess was taken it can be stated with almost absolute that the two remaining articles are in the following order article 11 limitation of dussias Rus sias naval power in the far east article 12 tho grant of fishing 1 rights in the russian littoral rom vladivostok to sea portsmouth N H aug la five articles of the possible treaty of washington remained to be considered when the peace plenipotentiaries resumed their session at the navy yard this morning sakhalin Sak halin upon which it had been impossible to agree and which had been passed over indemnity limitation upon dussias Rus sias sea the surrender of the interned power warships and the grant of fishing rights on the littoral of tho maritime provinces remuneration for the cost is no 9 tho of the war it is believed first article to come up today how far it will be threshed out before it is passed over is problematical fishing rights russia will yield there only remain limitation upon dussias Rus sias and the surrender of tho sea power interned the final struggle Is close at hand and preparations are being made for it when the remaining points of possible agreement are demonstrated an adjournment will be taken probably until monday when tha diaries will show their last cards tho japanese are in the closest touch with their government they are keeping boklo advised of every development of the proceedings it was six morning when last nights stream of cables to japan was completed the weather since the arrival of the plenipotentiaries has strangely followed tho sentiment as to the outcome today was bright and cheery the sun shone gloriously it waa another page out of the wonderful weather book to which new england has treated her distinguished foreign guests last deex the heat was unbearable and the plenipotentiaries were angry saturday was cold and dreary and it looked as it a storm would break bat it did not and the fear that negotiations might be broken off when the meeting occurred in the afternoon after the presentation of the russian reply ws happily averted sunday was fair and bright tuesday it stormed and in tha conference room the first insurmountable barrier appeared the cession of sakhalin Sak halin yesterday afternoon the weather cleared and the plenipotentiaries while returning to the hotel were treated to the sight of a glorious new england sunset the natural line of compromise on the two main issues between the peace plenipotentiaries comes out more and more clearly russia to yield lin to the sovereignty of japan upon japans pledge not to fortify tho island or use it for military or strategic purposes and to allow equal fishing and commercial opportunities to the alt dizeno of both countries and Japan to forono remuneration tor tho cost of the war and to take instead such incidental monetary compensation as ale will obtain from the transfer of the Liao tung and port arthur leases the chinese eastern railroad and repayment for the maintenance of the russian prisoners such an arrangement regarding sak halin might solve problem so far as article five is concerned the russians while admitting that the island is of little value to them commercially or from a military standpoint with japan controlling tho entrances to the sea of japan nevertheless insist most strenuously that its military possession by japan would constitute a constant threat against their maritime provinces it is only separated from the main land by the narrow straits of it could never be used by russia for aggressive purposes but it in unrestricted possession of japan she could at any time use it to concentrate an army for landing on the asiatic coast in winter the straits are frozen and an army could cross on the ice in summer it would bs only a matter of hours in 1 boats with japan able to operate from northern korea by crossing the river the russian maritime provinces and vladivostok would be subject to attack from two fronts |