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Rh Viceroy in regard to having a foreign machine shop established in China, but it had not been determined what kind of a machine shop should be established. One evening they gave me a dinner, at which time the subject of the machine shop was brought up and it became the chief topic. After each man had expressed his views on the subject excepting myself, they wanted to know what my views were, intimating that in all likelihood in my next interview with the Viceroy he would bring up the subject. I said that as I was not an expert in the matter, my opinions or suggestions might not be worth much, but nevertheless from my personal observation in the United States and from a common-sense point of view, I would say that a machine shop in the present state of China should be of a general and fundamental character and not one for specific purposes. In other words, I told them they ought to have a machine shop that would be able to create or reproduce other machine shops of the same character as itself; each and all of these should be able to turn out specific machinery for the manufacture of specific things. In plain words, they would have to have general and fundamental machinery in order to turn out specific machinery. A machine shop consisting