10 DECEMBER 1904, Page 1

The remaining news may be briefly summarised. The capture of

203-Metre Hill has meant the evacuation of several adjoining positions, such as Red Hill, the Russians being unable to endure the fire from the greater height, while the highlands north of Izrhkau and Sanlikido have also been occupied. There seems to be a general impression among Russian authorities that the occupation of 203-Metre Hill means that the energy of the defence has weakened irre- parably, and more than one expert prophesies the fall of Port Arthur before the New Year. Meantime the usual intrigues are going on within the bureaucracy at home. That sinister personage, Admiral Alexeieff, is reported to be agitating for the despatch of a third squadron from the Baltic in January, apparently out of hostility to Admiral Avellan, the Minister of Marine. The Baltic Fleet, which is at present coaling in the Red Sea, will, if all goes well with it, reach the Pacific by the New Year; and if, as we have suggested, it can reach a base—Vladivostok—an additional spradron might be good policy. But we greatly doubt if Russia has the power to equip a new fleet within the next six months. The Baltic Fleet will have to achieve alone whatever it may be capable of.

A belated but highly significant statement in regard to the North Sea incident was issued by the Naval Headquarters Staff at St. Petersburg on Monday. The document, which is based on "supplementary information from Admiral Rozhdest- vensky," admits, first, that the order to cease firing on the