Peng reports on the situation in Xinjiang following the takeover of Xinjiang by the People's Liberation Army.

Dr. Soong reports Chiang Kai-Shek's response to the stalemate on the question of Outer Mongolia to Stalin and Molotov. Chiang insists on preserving the territorial integrity of China vis a vis Outer Mongolia and Manchuria, and that China's sovereignty in Manchuria should be reinforced by Chinese administration of Port Arthur and Dairen. Stalin asks to think over his decision before responding to Chiang.

Stalin, Molotov, Voroshilov, and Governor Sheng discuss Xinjiang's military, level of industrialization, and natural resources, as well as Governor Sheng's strong desire to join the Communist Party.

Sheng Shicai expresses gratitude to Cde. V. M. Molotov for Soviet assistance with eliminating the 36th Division of the NRA from the South of Xinjiang and combating a Trotskyist plot in Xinjiang. He requests Molotov's assistance with "implementing the policy of the six principles" in Xinjiang and turning it into a model province.

The Politburo transfers Soviet military units deployed in Xinjiang and supervision of the Xinjiang army to the control of the People's Commissariat of Defense.

The Politburo orders two regiments be sent into Xinjiang to prevent the advance of the 36th Division. It also orders that Ma Zhongying continue to be detained and recommends that the governor of Xinjiang avoid an agreement with Ma Hushan.

In response to Ma Hushan's (commander of the 36th Division of the NRA) request for Soviet assistance in Xinjiang and the release of Ma Zhongying from the Soviet Union, the Politburo resolves that it will provide assistance only after the leadership of the 36th Division concludes an agreement with the Xinjiang government and establishes peace in the south of Xinjiang.

Noting that the command staff of the 6th Division of the Chinese National Revolutionary Army is hostile to the Urumqi government, the Politburo orders that the units be disarmed and the command staff arrested. The Politburo also orders that a group of energetic Chinese and Uighurs from Kashgar be sent to organize a government in Yarkant.

The Soviet Politburo directs Cde. Frinovsky to suggest that division commander Ma Hushan of the Chinese National Revolutionary Army intercept Mamut and disarm him.

The Politburo accepts Ma Zhongying's proposal and recommends that the Urumqi government agree to appropriate concessions in peace talks with the 36th Division.