sterling, the conference would be broken off; nor did such an exchange seem unreasonable, for were Russia expelled from the northern part of Sakhalin, which commands the estuary of the Amur River, her position in Siberia would have been compromised. But the statesmen who directed Japan's affairs were not disposed to make any display of earth-hunger. The southern half of Sakhalin had originally belonged to Japan and had passed into Russia's possession by an arrangement which the Japanese nation strongly resented. To recover that portion of the island seemed, therefore, a legitimate ambition. Japan did not contemplate any larger demand, nor did she seriously insist on an indemnity. Therefore the negotiations were never in real danger of failure. The treaty of Portsmouth recognized Japan's "paramount political, military and economic interests" in Korea; provided for the simultaneous evacuation of Manchuria by the contracting parties; transferred to Japan the lease of the Liaotung peninsula held by Russia from China together with the Russian railways south of Kwang-Cheng-tsze and all collateral mining or other privileges; ceded to Japan the southern half of Sakhalin, the 50th parallel of latitude to be the boundary between the two parts; secured fishing rights for Japanese subjects along the coasts of the seas of Japan, Okhotsk and Bering; laid down that the expenses incurred by the Japanese for the maintenance of the Russian prisoners during the war should be reimbursed by Russia, less the outlays made by the latter on account of Japanese prisoners--by which arrangement Japan obtained a payment of some 4 millions sterling--and provided that the contracting parties, while withdrawing their military forces from Manchuria, might maintain guards to protect their respective railways, the number of such guards not to exceed 15 per kilometre of line. There were other important restrictions: first, the contracting parties were to abstain from taking, on the Russo-Korean frontier, any military measures which might menace the security of Russian or Korean territory; secondly, the two powers pledged themselves not to exploit the Manchurian railways for strategic purposes; and thirdly, they promised not to build on Sakhalin or its adjacent islands any fortifications or other similar military works, or to take any military measures which might impede the free navigation of the straits of La Pérouse and the Gulf of Tartary. The above provisions concerned the two contracting parties only. But China's interests also were considered. Thus it was agreed to "restore entirely and completely to her exclusive administration" all portions of Manchuria then in the occupation, or under the control, of Japanese or Russian troops, except the leased territory; that her consent must be obtained for the transfer to Japan of the leases and concessions held by the Russians in Manchuria; that the Russian government would disavow the