TOP SECRET (d) The Communists' immediate aim in negotiating an armistice (i.e. to obtain a respite in which to build up their strength) has been achieved and they are now able to inflict an increasing amount of wear and tear on the U.N. They are likely to continue to develope the potential of their land forces for both defensive and offensive operations, and to make every effort to improve their air defences. (e) We cannot be sure that an armistice would ensue if the repatriation issue was settled, though we believe that this issue may well be a genuine difficulty for the Communists.