North of the 38° North parallel, the estimated Soviet troop strength in Korea is approximately 45,000. These forces are organized into two major units, the 40th Rifle Division and the 19th Mechanized Division, plus complementary air, naval, and service support. There is evidence of further Soviet withdrawal now underway. An accurate figure denoting the Soviet-trained and equipped North Korean People’s (Communist) Army in its overall structure has not yet been obtained but the figure of 125,000 troops has been generally accepted. These forces assist Soviets in control of the border, maintain liaison with Chinese Communists in Manchuria, and constitute a potential military threat to South Korea. Current political and economic unrest in Southern Korea is aggravated by Communistic terrorism, and by Communist-inspired riots and revolutionary activities in the occupied area. Such disorders impose additional military burdens on the police, the constabulary, and the American Occupation Forces. In addition, there is a possibility, however remote, of a Soviet-inspired invasion of South Korea by troops of the North Korean People’s (Communist) Army. Recent reports from Manchuria indicate that sizable elements of Korean troops are operating with Chinese Communists, possibly to acquire battle conditioning. Furthermore there is evidence that Soviet officers and equipment are being used to groom the Korean Army. Although it is extremely doubtful that the Soviets or their North Korean satellites would invade South Korea in the near future, infiltration of Communists and of large numbers of the North Korean Army, in connection with large-scale Communist-inspired or abetted riots or revolts in the South, is always a dangerous threat. Should this occur, the forces available should be adequate for maintaining order under any circumstances except for an outright Soviet directed or controlled invasion. _Strategic Importance_ The political, social, economic, and military situations in South Korea are inextricably mingled. A Soviet-dominated Korea would constitute a serious political and psychological threat to Manchuria, North China, the Ryukyus, and Japan, and hence to United States strategic interests in the Far East. It is therefore in the best interest of the United States to ensure the permanent military neutralization of Korea. Neutralization can only be assured by its occupation until its future independence as a buffer state is assured.