THE PEACE NEGOTIATIONS.

New Zealand Herald, Volume XLII, Issue 12910, 5 July 1905, Page 5

THE PEACE NEGOTIATIONS.

RUSSIAN ROMANCING AT

PEKIN.

THE QUESTION OF AN

ARMISTICE.

By Telegraph Press Association—Copyright.

London, July 3. The Russian Minister at Pckin has informed the Chinese Government that the resources of Japan are exhausted, although she has not set foot on Russian territory. Japan, therefore, had prompted President Roosevelt to initiate peace negotiations, and Russia had agreed to enter upon them out of courtesy to America. The St. Petersburg correspondent of the Times says that Russia has appealed to President Roosevelt to arrange an armistice, and that Japan has declined to consider the matter unless Russia asks Japan herself for the cessation of hostilities. PRESIDENT ROOSEVELT'S NOTE. San Francisco, June 10. The keenest interest is manifested in President Roosevelt's note endeavouring to bring Japan and Russia to an understanding. While the British Government is not taking any part in the negotiations, it is giving the most cordial support to the President, of whose actions in the matter it has been kept fully informed. Diplomatic and official circles speak in the highest terms of the diplomatic, manner in which the President handled the matter, and are fully in accord with what they considered to be the only way in which the difficulty could be overcome. '

The United States not being entangled, in any way, was really the only country which could take action, but even President, Roosevelt could not. do more than endeavour to star t direct negotiations between the belligerents. Japan, it can foe stated, refused to start the negotiations until fully assured of the earnestness of Russia, and that her proposals would be seriously considered. Her demands will include an. indemnity, as to tlie amount of which the President is' urging lenient treatment. It is considered here that Japan is entitled to an indemnity, and it is pointed' out that while the payment of an indemnity might affect the standing of Russia among the Powers, it is not so serious as the loss of territory; besides, the payment of an indemnity would be forgotten sooner than the, loss of. territory, and would leave no feeling of revenge. Financial circles in London are of the opinion that the Japanese i will demand an indemnity amounting to afoout 1,000,000,000 dollars, that being their estimate of the cost to the Japanese after the. sixteen months' fighting. This is considered in some quarters to be too large an estimate of the expenditure, which is thought to be nearer 600,000,000 dollars.