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Chinese courts are seldom troubled with litigations on contracts, and in all cases of violation of contracts, the Chinese code is used.

In 1867, Viceroy Tsang Kwoh Fan, with Li Hung Chang's co-operation, succeeded in ending the Nienfi rebellion, and came to Nanking to fill his viceroyalty of the two Kiangs.

Before taking up his position as viceroy of the Kiangs permanently, he took a tour of inspection through his jurisdiction and one of the important places he visited was Shanghai and the Kiang Nan Arsenal — an establishment of his own creation. He went through the arsenal with undisguised interest. I pointed out to him the machinery which I bought for him in America. He stood and watched its automatic movement with unabated delight, for this was the first time he had seen machinery, and how it worked. It was during this visit that I succeeded in persuading him to have a mechanical school annexed to the arsenal, in which Chinese youths might be taught the theory as well as the practice of mechanical engineering, and thus enable China in time to dispense with the employment of foreign mechanical engineers and machinists, and to be perfectly independent. This at once ap-