The last few days have been full of rumours—for they
are little better—as to the willingness of Russia to pay an indemnity to Japan. They arose in this way. The true subjects of contest at Portsmouth, New Hampshire, are the cession of Sakhalin and the payment of an indemnity. President Roosevelt, who is most anxious that the Conference should not fail, seems to have thought that Japan did not care much about Sakhalin, and that Russia would pay the indemnity if her "face were saved" by some colourable trans- action. He is therefore said to have suggested that Japan should give up a proposal which she had made to limit Russian activity in the Pacific, and also her claim to the Russian ships which have been " interned " in neutral ports, and that Russia should buy back Sakhalin, or the northern half of it. This suggestion was accepted at Tokio and tele- graphed to St. Petersburg, where, however, it was received with disfavour, and on Thursday Count Lamsdorff declared officially that as a matter of principle Russia will pay Japan no contribution, either direct or indirect, or make any cession whatever. The Wednesday meeting of Plenipotentiaries, which was to have been final, has been adjourned to Saturday. On Monday, therefore, we ought to know the truth ; but the issues are so tremendous that there may be some further delay. That delay tells in favour of those who believe in peace, a body including most men of influence on Stock Exchanges; but, for ourselves, we retain our opinion that the Czar, with an army of five hundred thousand men actually on the spot, cannot buy peace until they have been defeated. The shock to the Army's military pride would be too great.
