The details of the great struggle that ensued are given elsewhere (see RUSSO-JAPANESE WAR). After the battle of Mukden the belligerents found themselves in a position which must either prelude another stupendous effort on both sides or be utilized for the purpose of peace negotiations. At this point the president of the United States of America intervened in the interests of humanity, and on the 9th of June 1905 instructed the United States' representative in Tokyo to urge that the Japanese government should open direct negotiations with Russia, an exactly corresponding note being simultaneously sent to the Russian government through the United States' representative in St Petersburg. Japan's reply was made on the 10th of June. It intimated frank acquiescence, and Russia lost no time in taking a similar step. Nevertheless two months elapsed before the plenipotentiaries of the belligerents met, on the 10th of August, at Portsmouth, New Hampshire, U.S.A. Russia sent M. (afterwards Count) de Witte and Baron Rosen; Japan, Baron (afterwards Count) Komura, who had held the portfolio of foreign affairs throughout the war, and Mr. (afterwards Baron) Takahira. In entering this conference, Japanese statesmen, as was subsequently known, saw clearly that a great part of the credit accruing to them for their successful conduct of the war would be forfeited in the sequel of the negotiations. For the people of Japan had accustomed themselves to expect that Russia would assuredly recoup the expenses incurred by their country in the contest, whereas the cabinet in Tokyo understood well that to look for payment of indemnity by a great state whose territory had not been invaded effectively nor its existence menaced must be futile. Nevertheless, diplomacy required that this conviction should be concealed, and thus Russia carried to the conference a belief that the financial phase of the discussion would be crucial, while, at the same time, the Japanese nation reckoned fully on an indemnity of 150 millions sterling. Baron Komura's mandate was, however, that the only radically essential terms were those formulated by Japan prior to the war. She must insist on securing the ends for which she had fought, since she believed them to be indispensable to the peace of the Far East, but she would not demand anything more. The Japanese plenipotentiary, therefore, judged it wise to marshal his terms in the order of their importance, leaving his Russian colleague to imagine, as he probably would, that the converse method had been adopted, and that everything preliminary to the questions of finance and territory was of minor consequence. The negotiations, commencing on the 10th of August, were not concluded until the 5th of September, when a treaty of peace was signed. There had been a moment when the onlooking world believed that unless Russia agreed to ransom the island of Sakhalin by paying to Japan a sum of 120 millions