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Process would require lots of engine testing, which would be easily detected from a satellite. >> couldn't they have built these engines locally? >> it's a possibility. but if they did develop it locally, they would have done dozens, if not hundreds of ground tests to prove out the system. you would expect the engine to perform differently and look different. it doesn't. >> he believes that the transfer could have gone through what he calls elicit networks operating along the north korean border and all it would have taken is a few corrupt officials. >> there is a lot of corruption. it's not s...

>> the united states of america and our allies are prepared to deal with any threat. >> reporter: cnn has learned the u.s. has recently stepped up surveillance using aircraft, bars, and satellites nearby. so far, there are no signs of unusual military moves boy the nor -- moves boy the north. there's a disturbing program, the k08. this missile shown in a parade last year is undergoing engine testing. a three-stage ballistic missile with a potential 3,000-mile range. that's not as far as the rocket north korea launched which could hit alaska or hawaii. so why does the u.s. think it's so dangero...

Made clear how closely the u.s. is watching. >> the united states of america and our allies are prepared to deal with any threat. >> reporter: cnn has learned the u.s. has recently stepped up surveillance using aircraft, radars, and satellites already nearby. military officials say, so far, there are no signs of unusual military moves by the north. but there is a disturbing new weapons program, the kn-08. u.s. officials say this missile, shown in a north korean military parade last year, is now undergoing engine testing. it's a three-stage ballistic missile with a potential 3,000-mile range. t...

Surveillance using aircraft, radars and satellites already nearby. military officials say so far there are no signs of unusual military moves by the north. but there is a disturbing new weapons program, the kn-08. u.s. officials say this missile shown in a north korean military parade last year, is now undergoing engine testing. it's a three-stage ballistic missile with a potential 3,000-mile range. that's not as far as the rocket north korea launched which could hit alaska or hawaii. so why does the u.s. think it's so dangerous? the north koreans can drive the kn-08 around on a truck launcher...