After successful initial encounters on the part of Japan, Port Arthur was surrendered on January 1, 1905. After a Japanese victory at Mukden, the Russians retreated. In October 1904 the Russian fleet, coming round from the Baltic, opened fire on a group of Hull fishing smacks in crossing the Dogger Bank, mistaking them for torpedo boats. The incident roused considerable indignation in Britain, but the Czar expressed his regrets. The matter was referred to a commission of admirals in Paris, and compensation was awarded for the damage done. On May 27, 1905 the Russian fleet was annihilated by Admiral Togo at Tsushima. The Japanese landed a force in Sakhalin, but, both sides being exhausted and anxious for peace, negotiations were opened in August 1905. Political Result: By the _Treaty of Portsmouth_, August 1905, the claims of Japan in Korea were recognized; Russia agreed to evacuate Manchuria and ceded the Liao-Tung peninsula (including Port Arthur) and the southern half of Sakhalin to Japan. The payment of an indemnity, which had been the chief obstacle to the conclusion of peace, was waived by Japan. The moderation of the Japanese demands made a good impression in the world, but was resented in Japan itself. Remarks: This was a war of pure aggression, backed by high financial speculation on the part of Russia. The easy triumph of Japan was a surprise. But she was fighting for definite national objects, while the Russian people knew nothing of the cause and aims of the war. Russia spent much money in subsequent years in restoring her lost armaments. From this time on the reform movements and revolutionary spirit in Russia grew rapidly. TURKO-ITALIAN WAR 1911–1912 Belligerents: Italy. Turkey. Cause: After the agreements with regard to North Africa between Great Britain and France, Italy made up her mind that the time was favourable for a decisive move with a view to expansion, and proceeded to make careful preparations for military action early in 1911. The position in Tripoli was made the subject of heated discussion in the Press, and the Turks were charged with showing gross unfairness to Italian residents. The possible designs of Germany in North Africa also induced the Italian Government to take advantage of the first opportunity for an offensive step. Occasion: The Turks, foreseeing danger, sent war stores and munitions to Tripoli, and on September 29, 1911, the Italians, with their fleet ready and their troops embarked, declared war. Course of the War: