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.

Reply from Stalin to Shtykov's telegram of July 1, 1950. Requests additional information on KPA plans and reaction to American internvention. Informs of intent to meet requests by Kim Il Sung for additional war materiel.

Mao writes to Stalin of the ongoing armistice negotiations concerning Korea, specifically the proposed demarcation line (38th parallel). Mao also writes about monitoring, the exchange of prisoners of war, and economic considerations within China.

A message from Gromyko to Stalin relaying the assessment of Shtykov that it would be prudent for the Soviet Union to withdraw some nonessential embassy personnel and specialists from North Korea. Gromyko advises that withdrawals should be considered only in consultation with North Korea and the appropriate Soviet ministeries.

Telegram from Kim Il Sung and Pak Heon-yeong telling Stalin of the losses they have incurred following American air and ground attacks in South Korea and of their general lack of supplies and trained personnel.