An item referred to the magazine Proc. dated January 1934 reported that the Japanse department of defence announced the founding of a Naval Institute in Manchuri in 1935. Vice minister Wang Ching Nsiu and the commanding officer of the naval forces for the rivers signed an agreement dealing with the budget necessary for such an institute. At that moment consisted the navy of Manchuria just of river gunboats but the cabinet intended to replace these by larger warships.