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LAID CAMPAIGNI t. - ♦.—————————i

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LAID CAMPAIGN I t. ♦ .————————— Japan to Isolate Fort Arthur. HUGE ARMY ON THE MOVE. Expected to Land near Dalny to-day. On official authority it is announced that Japanese transports, with 100,000 troops on board, have left their base for Dalny, or some neigh- bouring point, with the object of cut- ting off Port Arthur from its com- munications. The captain of the cornered Russian cruiser at Shanghai, although ordered to leave that port by the Chinese, declines to do so, declaring that he awaits his admiral's orders. Two Russian vessels have been seized by the Japanese at Hakodate, in accordance with orders issued ten days ago. Russia is reported to be collecting Koreans and arming and training them as soldiers. Three thousand Russian troops have arrived on the Yalu River. Japan has agreed to the neutralisa- tion of China, with the exception of Manchuria, reserving her right to counterbalance any action of Russia in violating the neutrality. RUSSIA ARMING KOREANS I The acting Japanese Consul at Song- chin reports that the Russians are collect- ing naturalised Koreans from the villages on the frontier and training them as soldiers. They are now stationed as sentinels opposite Kyong-heung. An important naval and military con- ference was held at the Imperial head- quarters, Tokio, yesterday (says Mr. E. J. Harrison in the "Daily Mail "), to discuss the plan of campaign on land and sea. JAPAN AND THE NEUTRALITY I OF CHINA [Press Association Special Service.] NEW YORK, Thursday. The following dispatch of yesterday's date has been received here from Tokio: Japan, replying tilrough Mr. Griscom, United States Minister here, to Mr. Hay's Note to the Powers, has agreed to the neutralisation of China, exclud- ing Manchuria, which is occupied, by Russia. Japan reserves to herself the right to counterbalance any action on the part of Russia violating the neutrality of China. The Emperor, with his Councillors and the majority of the Cabinet, will leave, probably about the 20th inst., for Kyoto, where temporary Imperial head- quarters have been prepared, and will afterwards proceed to Hiroshima to watch the embarkation of troops. 456 KILLED AND DROWNEDI Russian Losses at Chemulpo. I [Press Association Special Service.] I COLOGNE, Thursday. A telegram from Chemulpo of yester- day's date, published by the "Koelnische Zeiturg," repeats the first statement con- cerning the alleged heavy Russian losses at the Battle of Chemulpho. It asserts that seventeen ofifcers and 439 men, belonging to the Russian cruiser Variag, and the gunboat Korietz, were either killed II or drowned, and fifteen officers and 250 men were saved by the British cruiser Talbot, the Italian cruiser Elbo, and the French cruiser Pascal. None of the rescued were taken on board the American cruiser Vicksburg. After protracted negotiations with the Japanese Government, which demanded the surrender of the rescued, the Pascal left with the survivors for Shanghai, where she will land them, afterwards con- tinuing her voyage to Saigon. THE CORNERED CRUISER Russian Captain Sits Tight I The Mandjur has been ordered to leave Shanghai by the Chinese authorities. She persists, however, in remaining, as the captain declares he awaits the Rus- sian admiral's orders. The Russian vessels Bovrik and Na- deshda, which did not leave Hakodate in accordance with the order issued ten days ago, were seized on Tuesday night by thl" Japanese cruiser Takao. RUSSIANS ON THE YALU. I [Central News Spocial Servioe.1 ] SEOUL, Tuesday Night. Intelligence has reached here that 3,000 Russian troops have arrived at the Yalu River. They are encamped opposite Wi-iu. CZAR SAID TO BE ILL I A rumour has been received in Vienna from St. Petersburg that the Czar's state of health is giving rise to serious appre- hensions. His Majesty, it is said, is suffering from mental depression and an affection of the nerves as a consequence of the great excitement produced by re- cent news from the Far East. The rumour so far is unconhrmed. ■ ft ■ Japan's Superior Ammunmon. Japanese naval officers claim that the recent fighting conclusively demonstrates the superiority of the Japanese ammunition. Even when the Russian projectiles hit, the damage done by them was insignificant, whereas the Japanese shells inflicted terrible injuries. So far as w known the Japanese Navy uses cordite for its guns-the same type of ammu- nition that is employed in the British Navy. The Russian Navy uses nitro-cellulose. Situation in Manchuria. [Press Association Special Service.] ST. PETERSBURG. Thursday. Major-general Pflug telegraphs that General Yuanskika-i has announced to his troops the neutrality of China, and has sent 2,500 soldiers to Tsinchoufu to preserve tranquility. The town of Port Arthur is in no way changed. # Inkau remains tranquil. The news is confirmed of the organisation "by the-Japanese of bands of Chunchuses. with the object of making a simultaneous attack on the railway. On the Yalu tranquility prevails, and patrols report that there are none of the enemy within 50 versts. It is announced that a line of steamers will shortly begin running between Shanghai and Nagasaki. The Minister of Foreign Affairs on the 16th received a telegram from the commander of the French cruiser Pascal, stating that he was leaving Chemulpo to land at Shanghai the Russian Minister at Seoul, 62 Russian subjects, the commanding officers of the cruisers Variag And Koreitz, and sixteen officers and 268 men 44 tfee same vessels.

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