Governor Sheng describes the investigation into Sheng Shiqi's (the Commander of the Mechanized Brigade of Xinjiang) death, which revealed that Chen Xiuying (his wife) murdered him under pressure from Xiao Zuoxin, the assistant to the Director of the Urumqi office of the Native Corporation. He also reports that Kruglov, Soviet advisor for trade matters, intentionally disrupted trade between the Soviet Union and Xinjiang because of the Xinjiang government's alleged anti-Soviet attitude.