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.

Stalin, Molotov, Voroshilov express alarm about Shicai Sheng's red corner and discussions about the possible Sovietization of Xinjiang, reported in an earlier telegram from G. Apresov. They reaffirm that the USSR has no territorial claims on China, denies any plans for the Sovietization of Xinjiang, and declares its firm support for China in its struggle of independence from Japan, Britain, and other imperialist countries.

Stalin agrees with Mao Zedong that North Korea is not yet ready to launch an assault, and reports that the Soviet Union has told North Korea to concentrate on developing liberated areas and guerrillas in South Korea.

Conversation between Stalin and Mao concerning a proposed treaty of friendship and alliance between the USSR and China. Discussion includes: the prospects of future Japanese aggression, the Chinese-Eastern Railway (Mao and Stalin disagree on who should run its administration), the Port Arthur agreements (including the question of the port of Dalny), and economic cooperation. The economic cooperation focuses on a Soviet credit program for economic development in China, as well as the question of arms shipments to China. There is also discussion of Tibet.