Michael Gordon, NY Times, says North Korea has frozen its nuclear bomb program, but they may already have one or two according to American officials. Arms Races
On the other hand, North Korea is busy starting development of a Hong Kong type manufacturing zone, with the aid of the Chinese. Like Hong Kong, it will be kept somewhat separate from the rest of the economy. At the moment, they seem more interested in changing to the capitalist route.
They must be watched, but the course of action at present should be to encourage them to enter the world economy.