Thus the way was opened for an amicable interchange of the views of the two Powers. This auspicious beginning of the negotiations stands in striking contrast to their disastrous end. The discrepancy was perhaps in no small measure due to a political situation at St. Petersburg which was completely beyond the control of Count Lamsdorff, and probably also of the Czar. It should be remembered that Baron Komura, like Marquis Itō, was of the opinion that the conclusion of a satisfactory agreement with Russia was not only desirable, but also possible. The same belief was strongly shared by Mr. Kurino. It is also difficult to suppose that Count Lamsdorff entered upon the negotiations with a deliberate intention to introduce into them insurmountable difficulties, as he was presently obliged to do, so as to bring them to a complete deadlock. On the contrary, his remarks quoted in the preceding paragraph seem to indicate that he and Mr. Kurino had frequently talked of the wisdom of coming to a perfect adjustment of the interests of the two Powers in the East, and that he was gratified that the opportunity was offered by the Japanese Government to give effect to what he had long considered “the best policy.” About this time, however, it had begun to be surmised abroad that the peace party, with which the Count and M. Witte were said to be in sympathy, had been largely overshadowed by the less intelligent warlike faction. It was unknown what were the results of the observations of General Kuropatkin, the then Minister of War, who had made a tour of the East between the end of April and the end of July. Nor was it possible to discover what took place in the great conference held at Port Arthur early in July, in which the General, as well as Admiral Alexieff, MM. Lessar, Pavloff, Rosen, and Pokotiloff, took part. However that may be, it could hardly be denied that henceforth the Eastern affairs passed under the sway of a less thoughtful body of men at St. Petersburg, and of that executive officer of great talent, but strategist and diplomat of unknown value, Admiral Alexieff, at Port Arthur. M. Witte was relieved of his Ministry of Finance, and transferred to the presidency of the council of ministers, which was known to be of small real authority. On August 13, an Imperial ukase was published in the Russian Official Messenger, stating that, “in view of the complex problems of administration of the eastern confines of the Empire, we [the Czar Nicolas] found it necessary to create a power capable of assuring the peaceful development of the country and satisfying urgent local needs.” For this purpose, a special vice-regency called the Far East was created out of the Amur and Kwan-tung territories, and Admiral Alexieff was appointed Viceroy of the Far East. He was vested with supreme power in the civil administration of the territories, with the command of the naval forces in the Pacific and of all the troops quartered in the country under his jurisdiction, and with the management of the diplomatic relations of these regions with the neighboring States. The Viceroy was released from the jurisdiction of the Ministers at St. Petersburg, and the only control to be exercised over him by the central power was through a special committee of men[[587]] nominated by the Czar and presided over by himself.[[588]] Statutes concerning this special committee of the Far East—which has in itself no executive power—were promulgated on September 30.[[589]] When we consider the probable state of Russian politics at the time, the significance of thus elevating Alexieff and clothing him with enormous powers could hardly be concealed. Henceforth the control of the Eastern diplomacy of Russia seemed to have rested more with the Viceroy at Port Arthur than with the Foreign Minister at St. Petersburg.[[590]]

Admiral Alexieff was appointed Viceroy on August 13. On the preceding day,[[591]] the first Japanese note was handed to Count Lamsdorff by Mr. Kurino, who had held it for about a week pending the Czar’s assent to Japan’s proposition of July 28, already quoted. In this note, delivered on August 12, Baron Komura wrote as follows:—

ADMIRAL ALEXIEFF
Viceroy of the Far East

“In reference to my telegram of the 28th July, the Imperial Government, after giving most serious consideration to the condition of affairs in those regions where the interests of the two Powers meet, have decided to propose the following articles as the basis of an understanding between Japan and Russia:—

“1. ‘A mutual engagement to respect the independence and territorial integrity of the Chinese and Korean Empires, and to maintain the principle of equal opportunity for the commerce and industry of all nations in those countries.

“2. ‘A reciprocal recognition of Japan’s preponderating interests in Korea and Russia’s special interests in railway enterprises in Manchuria, and of the right of Japan to take in Korea, and of Russia to take in Manchuria, such measures as may be necessary for the protection of their respective interests as above defined, subject, however, to the provisions of Article 1 of this Agreement.

“3. ‘A reciprocal undertaking on the part of Russia and Japan not to impede the development of those industrial and commercial activities, respectively, of Japan in Korea and of Russia in Manchuria, which are not inconsistent with the stipulations of Article 1 of this Agreement.

“‘An additional engagement on the part of Russia not to impede the eventual extension of the Korean Railway into Southern Manchuria so as to connect with the Eastern Chinese and Shan-hai-kwan-Niu-chwang lines.

“4. ‘A reciprocal engagement that, in case it should be found necessary to send troops by Japan to Korea, or by Russia to Manchuria, for the purpose either of protecting the interests mentioned in Article 2 of this Agreement, or of suppressing insurrection or disorder liable to create international complications, the troops so sent are in no case to exceed the actual number required, and are to be forthwith recalled as soon as their missions are accomplished.