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.

NSC 157/1 analyzes the situation following the armistice in Korea and the problem of Korea's division in half. The report analyzes the North Korea/Communist, US, and South Korean positions regarding reunification. Although a unified Korea allied militarily with the US is not seen as a possibility, the report concludes that it might still be possible to achieve "a unified, neutralized Korea under a substantially unchanged ROK [South Korea]."

The National Security Council reports to President Truman on possible US courses of action in resposne to the North Korean invasion of South Korea.

The US National Security Council discusses recent release of prisoners of war in South Korea. The riots and disturbances in East Germany and Czechoslovakia are discussed in the context of the general “softening” of Soviet policy. The Council also discusses the possibility of a four-power meeting, and other alternative courses of action.