The document discusses the basics of Java applets. It defines applets as small Java programs used in internet computing that are transported over the internet, automatically installed on client machines, and run as part of a web document using a tool called appletviewer. Applets interact with users through AWT instead of console I/O and can be classified as local or remote. Key differences between applets and applications are that applets cannot access local files or run local programs and require an internet connection for remote applets, while applications can do these things and generally do not need an internet connection.