The building of modern warships and the training of naval personnel to operate these vessels were the main objectives of the Navy Yard. The ‘General Contract of Execution’ thus provided for the construction of a modern dockyard, equipped with the best facilities, to build a specific number of steamships and to train Chinese to build and operate them, all within a five-year term. In the thinking of Tso Tsung-t'ang and Shen Pao-chen, these time-specific goals were but a means to a higher end – a modern defence facility based on technological independence. Anything less, Shen insisted, would be inconsistent with the goals of self-strengthening. This chapter focuses on the construction of the dockyard facilities, shipbuilding, and naval training.

In the overall scheme of things, ‘the direction of the works and of the instruction belongs to the Europeans’. Having been promised generous rewards on completion of the contract, the Europeans had strong incentives to succeed, regardless of Chinese input. Yet an active role by Shen and his staff could prove valuable in a project that developed with time and changing needs. Their contribution, which could well be a first step towards technological independence, would depend on their growing understanding of the works.

On his first day in office, Shen stressed the superiority of Western technology. The foreigners were indefatigable in seeking improvement, he said; hence, their technology never stood still.