RUSSIA AND JAPAN.

Otago Witness, Issue 2603, 3 February 1904, Page 23

RUSSIA AND JAPAN.

THE REPLY FROM RUSSIA.

PROBABLY BE UNSATISFACTORY.

WAR PREPARATIONS GOING ON. ST. PETERSBURG, January 27. One hundred additional Russian naval officers are hastening to the Far East. January 29. A special council was held at St. St. Petersburg with the object of discovering a pacific issue in the i 1 ar East. Count Lamsdorff, General Kuropatkin, and the heads of the Asiatic Department attended. They will report to the Czar to-day.

LONDON, January 26. Provisions at Port Arthur are not allowed to be sold without official permission. The food supply there will suffice for five months. Fifty thousand tons of coal were stacked during the past few weeks. General Ma, with 20 Chinese regiments, has occupied strategic positions on the borders of Chi-li. The new Korea Ministry is favourable to Japan. The Russian first reserves have been warned to hold theniselvs in readiness for service. A Japanese ordinance which has been promulgated empowers the Government to control all private railways for military purposes. The Military Council met on Monday in the Imperial Palace. The Daily Mail's St. Petersburg correspondent says that Japan insists that Russia's assurances* must be embodied in a treaty. German diplomatists assert that while the Russian reply embodies important concessions regarding the Chinese sovereignty yet it does not concede Japan's irreducible minimum. An impression prevails that the chief difficixlty results from Japan's insistency upon the integrity of China, including Manchuria. Russia claims to deal only with China regarding Manchuria. Two thousand Chinese troops enlisted by Russia deserted when ordered to Port Arthur. The newspapers are hopeful that Count Lamsdorff's reascendency will result in peace. They condemn M. Bezabrozoff and Prince Alexieff's policy of bluff. January 27. Reuter's Agency at Tokio reports that on Wednesday the Japanese authorities intimated to the Russian Minister of War that they desired an early reply. Their note was forwarded on the 16th, and sufficient time, they held, had elapsed for its consideration. Dr Morrison states that Prince Ching, at Russia's instance, asked the English and French Ministers at Peking whether England, France, and America would mediate between Russia and Japan. M. Dnbaill replied that France was willing, with the assistance of England and America, to arrange a modus vivendi, and, if successful, the Powers could then assist China towards an equitable agreement with Russia regarding Manchuria. The English and American Ministers, acting in complete agreement, informed Prince Ching it was difficult to make an offer to mediate at the present juncture to the two Powers, neither of whom had openly invited mediation, while Japan had already intimated to the Powers that she cannot accept mediation. Dr Morrison adds that Russia's sugges-

tion strongly appeals to the Chinese. War rates at Lloyd's have declined to 25 guineas. Mutual distrust has produced an impaase. Russia desires a guarantee that Japan will not fortify the ports of Southern Korea, and Japan requires a guarantee regarding the recognition of the Chinese sovereignty in Manchuria. Russia declines to give any formal stipulations respecting Manchuria. Japan is laying in large stocks of medicines, her purchases being valued at £10,000. Prince Alexieff has ousted from the Native Customs Department at Niuchwang Sir Robert Hart's Russian

nominee, appointed at the outset, installing a Government official from Dalny. The consensus of correspondents' opinion is that Russia's attitude to Japan is influenced by reports submitted to the Czar regarding the serious uuprepareduess of Russia's forces, and the effect of war on Russia's internal conditions. The Czar recognises that Russia is experiencing her most formidable crisis. January 28. Russia's military opinion does not believe that Count Lam&dorff has seriously undermined the impression made by Prince Alexieff at St. Petersburg, and favours the view that war is appreciably nearer. The Grand Dukes, combating the Czar's desires for peace, declare that Russian prestige cannot permit concessions to be made on the lines of Japan's impertinent demands. It is expected that Russia's reply to Japan will be ready on Saturday or Sunday. Japan is not likely to move till her new cruisers reach Singapore, except to prevent any attempt of the Port Arthur-Vladivostock squadrons to unite. The two Japanese cruisers have arrived at Colombo. Japanese troops, disgiiised as coolies, ai~e gradually entering Korea. It is intended to double the Japanese land and income taxes, and- thereby raise an additional 44 million yen. M. Plancon's recent interview is semiofficially denied in St. Petersburg. It was reported that M. Plancon informed the Daily MaiPs correspondent at Port Arthur that Japan's action in making a treaty with China was unfriendly and undiplomatic, and that Russia would not open Mukden and Antung, nor allow ioreign Consuls. ' The Japanese Government has decided to issue immediately a o per cent, internal loan of £10,000,000, at a minimum oi 95, redeemable in five years. Its success is assured. Groups of capitalists have promised to subscribe largely, one company taking •C 2,000,000. " j By monopolising the local land taxes, : increasing the income and sugar taxes, ! suspending jmblic works, and by retrenchment the Japanese Government expects to increase the revenue by £8,000,000, which will be devoted to the service of war loans. Bcngehi, -a Tartar general at Mukden, bas informed the Chinese Foreign Office that the Russians requisitioned 500 carts tor immediate military service. The Foreign Office peremptorily forbade the request on the ground that China had determined to be neutral. j Jamiary 29. j The Japanese mercantile houses in London have been instructed not to negotiate commercial bills at present. j A Russian military party crossed the Korean frontier near Yalu. The Russians are extending the telegraph line from the mouth of the Yalu to Port Arthur. The concentration of Cossacks on the Korean frontiers continues. i

Reports from two sources allege that Russia refused to guarantee China's sovereignty. Both Rup-sian and Japanese stocks have fallen in London. January 30. Count Lamsdorff has iniimiated that a reply will be transmitted next week. Groat care has been bestowed in the drafting. Prince Alexieff's viow^ were also awaited before the drafts were finally submitted to the Czar. The Times' Paris correspondent says that an interview with prominent Russians is published in Paris, and utterances in other directions show that Japan's decisive attitude renders it extremely 3iffieult to frame a reply which shall be neither provocative of war nor involve a complete surrender. The Daily Mail's Chefoo correspondent states that a Japanese warship in the vicinity of Cnemulpho fired thrice across the bows of the Russian steamer Argun, bound from Na^aspki to Dalny. In response to the frantic appeals of the passengers <t*?r Captain of the

Argun decided to stop, but no further I challenge was made. In the event of war. General Kuropatkiu. will command the Russian land forces. [A cable of the 23rd January stated that in the event of war Genial Kuropatkin would command on land and Prince Alexieff at sea.] French rentes hare declined materially in Paris. Russian stocks have suffered a heavy loss, and others are affected. A rumour circulated in the city states that Russia has prohibited the export of her cereals. The decline of Russian stocks at St. Petersburg has reacted on Berlin. A Reuter despatch states that unusual activity is being displayed at Simonstown, where the warships are taking in large supplies of coal and ammunition. Jatiuary 31. All merchandise traffic on the TransSiberian railway will be suspended after February 2 so as to leave the line free for the transit of troops and military stores. j February 1. ; A consensus of messages from St. Petersburg, Tokio, and Pert Arthur is to the effect that the Russian reply will be unsatisfactory to Japan. Tho newspapers at St. Petersburg are defiant and contentious, and seek to throw the responsibility of the ultimate upshot on Japan. Marquis Ito, General Count Katsura, Baron Komura, and others held an eight hours' conference en Saturday Russia purchased 20,000 tons cf Taiaping coal on Satuiday, and is negotiating for 30,000 tons additional, with immediate delivery at Port Arthur. General Yuanshikai's troops are on the border of Manchuria. In the event of war they would number 40,000. BELGIUM, January 28. Sixty thousand Belgian rifles have been shipped to Japan. NEW YORK, January 28. The New York Herald's Port Arthur correspondent states that a long telegram has been received from St. Petersburg enjoining Prince Alexieff to grant Japan's demands. FREMANTLE, January 28. Among the passengers by the Arcadia from London is Mr Kapkawa, a wellknown Japanese commercial expert. He stated, in the course of an interview, that everybody in Japan wanted to fight. Now was her chance. Japan was ready, but Russia was not. They had been ■waiting for this opportunity, and all the little things Russia had done in Manchuria and Korea, during the last few years would be remembered when it came to fighting. Japan, be said, wanted Manchuria. . . '