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.

A description of the political and economic situation in South and North Korea, and on the presence of the struggling democratic and reactionary forces and their influence among the people. Attached are three appendices on the combat and strength of the South Korean and the People's Army of North Korea, the amount of weapons in the People's Army, and the amount of ammunition in the People's Army as of August 1, 1949.

A telegram informing Stalin that there has been about 37 violations from the South Koreans over the 38 parallel, and that the Soviet government should advise the North Koreans to take appropriate measures to be ready to respond to more provocative actions from the North Koreans.

Terenti Shtykov reports on Kim Il Sung's military planning for an invasion of South Korea and signals Soviet approval for the invasion.

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.

Liu Shaoqi reports to Mao Zedong that the ethnic Korean officers have arrived to bring back the ethnic Koreans to Korea. To the request of the North Korean officers in bringing back the weapons ethnic Korean officers had used, Mao responds in the affirmative.

Kim Il Sung and Stalin discuss the military and economy in North Korea, Soviet-North Korean relations, and North Korea's relations with other foreign countries.

The Soviet Union sends a set of questions to Kim Il Sung on about the South Korean army and North Korea's war plans.

North Korea plans to attack South Korea, but the Soviet Foreign Ministry is skeptical about North Korea's actual military capabilities and generally disproves of North Korea's plans.

The Soviet Politburo argues that North Korea is not ready to launch a successful overthrow of the South Korean regime and suggests North Korea should concentrate its efforts on developing partisan groups in South Korea.