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.

Kim Gu (Kim Koo) and the Chinese Nationalist Minister Liu Yuwan discuss Kim's participation in the South Korean government, his attendance at a conference in Pyongyang, and the possibility of a Russian-led attack on southern Korea.

Ignatyev discusses the partisan movement in the rural areas of South Korea.