This report updates earlier information concerning North Korea's ballistic missile development and that country's technological missile-launch capabilities.

This report discusses the geography and military balance on the Korean Peninsula, presents the range of military options that might be applied there to specific U.S. political objectives, and assesses possible consequences. Military options discussed are: status quo, improved defensive posture, enforce sanctions, preemptive strike against nuclear facilities, and preemptive war.

Interview with Hazael R. Olivares, a serviceman in the U. S. Navy during World War II. Olivares dropped out of high school and decided to join the U. S. Navy after hearing about the attack on Pearl Harbor. He took his 16-week basic training course at Great Lakes in Illinois where he learned how to fire various guns and recognize aircraft. After basic training, he was assigned to Algiers, Louisiana where he learned how to weld. Aboard the USS Bordelon (DD-881), he served as a Ship Fitter in the damage control department. After WWII, he remained in the reserves and was called up for duty in Korea. He served aboard the USS Sitkoh Bay (CVE-86). After Korea, he worked as a civilian for the Army Corps of Engineers as an oiler on a dredge. He then served in the Merchant Marines, hauling refined petroleum products from South America to North America. He also discusses going to French Indochina (Vietnam) and traveling up the Saigon River in a merchant vessel.

Interview with Harold Aiken, a veteran of the Korean War from Highlands, Texas. The transcript includes a list of questions and Aiken's responses about his service in the U.S. Army (1946-1949) and impressions while stationed in Korea. While in the service, Aiken served as a truck mechanic for the 7th Division.

Interview with Charley Cole, a veteran of the U.S. Army who served in the Korean War and was wounded in action. Cole describes his time with the 34th Regiment in Korea at length, with many details about various combat missions and the weapons utilized. He also speaks on his injuries, including being shot in the shoulder.

In October 2002, the United States confronted North Korea about its alleged clandestine uranium enrichment program. Soon after, the Agreed Framework collapsed, North Korea expelled international inspectors, and withdrew from the Nuclear Nonproliferation Treaty (NPT). U.S. intelligence officials claimed Pakistan was a key supplier of uranium enrichment technology to North Korea, and some media reports suggested that Pakistan had exchanged centrifuge enrichment technology for North Korean help in developing longer range missiles.

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At least 50 documented incidents in more than 20 countries around the world, many involving arrest or detention of North Korean diplomats, link North Korea to drug trafficking. Such events, in the context of credible, but unproven, allegations of large scale state sponsorship of drug production and trafficking, raise important issues for the United States and its allies in combating international drug trafficking. The challenge to policy makers is how to pursue an effective counter drug policy and comply with U.S. law which may require cutting off aid to North Korea while pursuing other high-priority U.S. foreign policy objectives including (1) limiting possession and production of weapons of mass destruction; (2) limiting ballistic missile production and export; (3) curbing terrorism, counterfeiting, and international crime; and (4) addressing humanitarian needs.