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.

Rhee thanks Eisenhower for US appropriations for South Korea and congratulates him on the Korean War armistice.

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]."

General Clark relays to the US Joint Chiefs of Staff the terms of the United Nations proposal to repatriate prisoners of war captured during the conflict in Korea. The agreement grants prisoners the right to refuse to be repatriated.

Report from Ridgway, Commander in Chief of the United Nations forces in Korea on meetings between the UN Command and North Korea to negotiate an armistice in Korea.

General MacArthur reports from Tokyo on developments in Korea, stating that the Chinese military support to North Korea was increasing.