Eight of these proposals, of minor importance, were accepted, while the four of real significance were at once rejected by M. de Witte. These were: the cession of the Island of Saghalien, already partly occupied by the Japanese troops; the interning of all Russian ships lying in Japanese waters; an indemnity of $600,000,000 to reimburse Japan for the cost of the war, and a limitation of the naval power of Russia. Many times negotiations were on the verge of breaking; at the last of these crises, when the hope of an agreement was actually abandoned and preparations were making for departure, it is said, strong pressure was brought to bear upon Japan by President Roosevelt which led to a modification of the terms--a modification so excessive that deep resentment existed in Tokio, and a satisfaction correspondingly great was experienced in St. Petersburg. Japan withdrew her demands for indemnity and for acquisition of territory in the following way: she saved her adversary from the humiliation of reimbursing her for the cost of the war by offering to sell to Russia the northern half of the island in dispute,--Saghalien,--for two-thirds of the sum she had demanded under the name of indemnity. The Russo-Japanese treaty of peace, signed at Portsmouth in August, 1905, registers the concession of all the vital points in the demands of the conquering nation. The popular saying, "to the victor belong the spoils," does not hold good in Japan! Twice has she seen the fruits of her splendidly won victories snatched from her by the same hand; and twice has she looked with far-seeing eyes into the future, and quietly submitted. Perhaps she realizes that a time may come when Russia's friendship will be more valuable to her than Saghalien! The war was over. The march of armies had ceased; but the march of events, accelerated by the great upheaval, moved irresistibly on. Realizing that something must be done to pacify the people, a new and more liberal policy was announced, with de Witte, now Prime Minister, in charge. Russia was to have a _National Assembly_, a law-making body in which every class would have representation. This Russian Parliament was to be composed of two bodies: an Upper and a Lower House. The one to be called the "_Council of the Empire_," the other the "_Duma_." These were to be convoked and prorogued annually by Imperial Ukase. The President, Vice-President, and one-half the members of the Council of the Empire (consisting of 178 members) were to be appointed by the Tsar; twenty-four more to be elected by the nobility and clergy, a very small number by some designated universities and commercial bodies; each _Zemstvo_ (of which there are fifty-one) being entitled to one representative. The members composing the _Duma_, or Lower House, were to be elected by the Electoral Colleges, which had in turn been created by the votes of the people in the various provinces of the Empire for that purpose.