An intelligence report about both North and South Korea. The report explains what the situation currently is and what is projected to happen with Soviet and American interaction with their respective Koreas.

This report assesses the capabilities of North Korea in reference to; the Soviet position, the current political, economic, and military situations, and the current operations against South Korea.

The statement describes the conference which took place in Pyongyang from June 29 to July 5. The main goal of the conference was to discuss the separate elections held in South Korea and possibilities for the unification of Korea. The North Korean representatives considered the National Assembly formed in South Korea to be illegitimate and urged for the expulsion of foreign powers in order to achieve a unified Korea.

Kim Gu (Kim Koo) and the Chinese Nationalist Minister Liu Yuwan discuss Kim's participation in the South Korean government, his attendance at a conference in Pyongyang, and the possibility of a Russian-led attack on southern Korea.

Ignatyev discusses the partisan movement in the rural areas of South Korea.