This East German report, issued after the Interkit meeting in Prague, addresses the domestic and foreign policies of China. It makes reference to internal conflicts destabilizing the Chinese leadership. China is said to be enhancing its military potential, especially in the area of missiles and nuclear weapons. Its aims in foreign policy are to acquire a leadership position in the so-called "Third World", to expand its relations with capitalist countries, to damage the unity of the Socialist bloc, and to obstruct the foreign relations of the Soviet Union. Considering the increase of influence of China on North Korea, Romania, and Vietnam, as well as on the Communist parties in Spain and Italy, the Socialist countries must improve their anti-Maoist propaganda efforts.

This US analysis of the likelihood of nuclear proliferation during the next decade was finished only days after the first Chinese nuclear test on 16 October. The report analyses the implications of this test, as well as programs in India, Israel, Sweden, West Germany, Italy, Japan, Canada, and others. The National Intelligence Estimate (NIE) argued that India was the only new state likely to develop nuclear weapons, concluding that “there will not be a widespread proliferation …over the next decade.”