A statement was issued yesterday that the invitation of the U.S. President to the second Pesce Conference having been received in Tokio on the 1st of December, the Japanese Government has at once given reply to the effect that, being fully alive to the exact definitions and uniform practices that now exist in respect of some of the questions to be submitted to the proposed Conference, and finding in the fact that they are engaged in this war no sufficient reason why they should not take part in the work of the Conference, it accepts the invitation, with the reservation that the Conference will not assume to take any action in any way affecting the present war with Russia, Neutrality and the Shipbuilder.
With regard to the reported sale of a torpedo-boat by Messrs. Yarrow & Ca. to the Russian Government, it is stated here vessel was originally sold to a Stettin, who pretended that she was to be used as a private yacht, but ho transferred hor to the Russian agents. The latter converted her into a destroyer. It is reported that the British Government has instituted legal proceedings against the firm to determine whether the above procedure was illegal or not.
Tokio, 15th December.
At Port Arthur, The Japanese have already deag god up heavy guns to the 203-metre fort. The observatory station constructed there amid every hardship proved of pronounced value. In consequence of the recent bad weather and occasional blizzards operations had to be temporarily suspended, but the torpedo attack was opened on the 12th inst. on the battleship Sebastopol, which had the honour of being the sole remaining unit of the Russian line. She is said to have been covered under the w: with torpedo-proof entanglements and to be surrounded at the bow by triangular booms. Notwithstanding, she was reported, at last writing, to be submerged in the bows to the torpedo-tube line.
Political.
Recent proceedings politically are indicative of shiily-shaily tactics and abound in farcical incidents. The leaders of the Seiyukai and the Progressives had a conference with the Cabinet terday forenoon, when the Cabinet assented to another curtailment of one million yen in the Budget, and the Minister of War assauted to retrenchment to the extent of Yen 500,000 in the settlement, not in the Budget. The mentary understrappers pretend, of course, to assume a stalwart attitude, but a menace of dissolution is always effectly While on this subject, Count Mutsukata, G.C.MG., formerly Premier and Minis-for of Finance several tines, says that the wat finances depend upon the co-opera tive prosecution of public bonds with increased taxation. Those who are opposed to increased taxation in war time were not entitled to speak on war finances, and those who were solely anxious in regard to the effect of the increased taxation on the productive industries wore still less worthy of doing so. Count Matsukata believes that free trade is out of date, and ridicules its supporters.
Text read from the printed page and cleaned; old type leaves the occasional error.