A description of the political and economic situation in South and North Korea, and on the presence of the struggling democratic and reactionary forces and their influence among the people. Attached are three appendices on the combat and strength of the South Korean and the People's Army of North Korea, the amount of weapons in the People's Army, and the amount of ammunition in the People's Army as of August 1, 1949.

Soviet Ambassador to North Korea Shtykov reports that South Korean forces were being expanded with US assistance and that the government of President Syngman Rhee was taking steps to increase the combat readiness of its army.

Terenti Shtykov reports on Kim Il Sung's military planning for an invasion of South Korea and signals Soviet approval for the invasion.

Stalin agrees with Mao Zedong that North Korea is not yet ready to launch an assault, and reports that the Soviet Union has told North Korea to concentrate on developing liberated areas and guerrillas in South Korea.

Shtykov reports on his meeting with Kim Il Sung where Kim Il Sung requests a meeting with Stalin in Moscow.

The Soviet Politburo argues that North Korea is not ready to launch a successful overthrow of the South Korean regime and suggests North Korea should concentrate its efforts on developing partisan groups in South Korea.