North Korea Signals It's Ready to Bargain

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SEOUL, South Korea -- After weeks of heightened tensions on the Korean peninsula, it appears North Korea may be ready to talk, but with conditions.

North Korea says it will only talk to the United States and South Korea if the U.N. sanctions against the country are dropped.

In a statement released by senior military leaders, the North is also demanding that the United States stop engaging in what it calls "nuclear war practice."

Tensions on the Korean peninsula have been escalating since early February when North Korea conducted an underground nuclear test. Since then, the communist regime has threatened to attack South Korea, Japan and U.S. bases in the region.

For more, click play to watch George Thomas's report.

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