CONFERENCE HELD 0N JULY 31, 1941, BETWEEN 
        MR. STALIN, MR. HOPKINS, AND THE 
       INTERPRETER MR. LITVINOV, AT THE 
         KREMLIN IN MOSCOW - 6:30 p.m. TO
                                 9:30 p.m.
 
                                  PART I
 
          I told Mr. Stalin that the President was anxious to 
have his - Stalin's - appreciation and analysis of the 
war between Germany and Russia. Mr. Stalin outlined the 
situation as follows:
     He stated that in his opinion the German Army had
175 divisions on Russia's western front at the outbreak of 
the war, and that since the outbreak of the war, this has 
been increased to 232 divisions; he believes that Germany 
can mobilize 300 divisions.
          He stated that Russia had 180 divisions at the out-
break of the war, but many of these were well back of the 
line of combat, and could not be quickly mobilized, so 
that when the Germans struck it was impossible to offer 
adequate resistance. The line which is now held is a far 
more propitious one than the more advanced line which 
they might have taken up had their divisions been prepared. 
Since war began, however, divisions have been placed in 
their appropriate positions, and at the present time he 
believes that Russia has a few more divisions than Germany, 
and places the number of Russian divisions at 240 in the 
front, with 20 in reserve. Stalin said that about one 
third of these divisious had not as yet been under fire.
          Mr. Stalin stated that he can mobilize 350 divisions 
and will have that many divisions under arms by the time 
thespring campaign begins in May 1942.