With the sudden escalation of diplomatic activity on the Korean peninsula, the Cold War may finally be fading in East Asia. On the ground, however, the confrontation has not eased. The North Korean military machine is more active than it has been in over a decade. Long-range North Korean missiles are not being tested, but medium-range missiles that can hit Japan are being deployed at an increasing rate. The 1994 nuclear accord with North Korea has frozen Pyongyang's nuclear weapons ambition, but it has not been fully implemented, nor has the North's compliance fully verified.This Independent Task Force Report addresses the challenges of balancing diplomacy and deterrence in this next critical stage on the Korean peninsula. It examines the role of U.S. forces on the peninsula in this possible transition period; appropriate confidence-building and threat-reduction measures to be explored with the North; modalities for economic cooperation; trilateral U.S.-Japan-ROK and regional policy coordination and consultation; and longer-term strategic implications for U.S. policy in East Asia. Read Less