We start this morning with the abrupt cancellation from North Korea. <br />Just ten hours before today's scheduled talks with the South,... North Korea pulled-out of the high-level inter-Korean meeting,... saying Seoul's ongoing military exercises with the U.S. were ruining the diplomatic mood.<br />It's in stark contrast to what the regime has been saying in regards to joint military exercises in recent weeks,... when it seemed to be more understanding.<br />It's laying the blame at South Korea's feet... for its joint drills with the U.S.<br />Watching this rapid and unexpected shift in mood on the Korean peninsula,... is our unification ministry correspondent Oh Jung-hee who is on the line for us.<br />Jung-hee, it appears North Korea might be going back to its tried and tested bargaining tactics?<br /><br /> Semin,<br />Not only did the North notify South Korea of the cancellation via the inter-Korean contact channel... but Pyongyang also posted a very long statement through its state media.<br /> It explained it could not help but call off today's high-level talks, specifically because of the Max Thunder exercise -- a combined air force drill between South Korea and the U.S. that started last Friday.<br /> Pyongyang called the drill an apparent challenge to the Panmunjom Declaration and an intentional military provocation.<br /> The North stated that South Korea is breaking the two Koreas' promise to lower military tensions... and therefore, Seoul is to blame for the cancellation.<br />Pyongyang warned the improvement in inter-Korean relations and its dialogue momentum with the U.S. doesn't mean Seoul and Washington can hold their combined drills anytime.<br /> What's worrisome is that Pyongyang even left open the possibility of cancelling its summit with the U.S.,... saying Washington will have to consider the fate of their summit as well.<br /><br /> A complete shift in tone from North Korea indeed,... do we have anything from the South Korean government on what would've been the first inter-Korean interaction following last month's big summit?.<br /><br /> It's known that South Korean officials were indeed surprised and perplexed... because, as you've mentioned, the North has not brought up the joint drills as an issue until now.<br /> Also, it was just yesterday that Pyongyang suggested holding high-level talks today... which was already days after the Max Thunder exercises kicked off.<br /> On his way to work this morning, South Korea's Unification Minister Cho Myoung-gyon told reporters that the government will try to read North Korea's message thoroughly... and will send a reply to Pyongyang soon... although what it will say remains to be seen.<br /> Asked whether the North's move poses fundamental difficulties in implementing the Panmunjom Declaration, the minister said he doesn't believe so.<br /> He added... everything is in the early stages and different circumstances can present themselves... so it's important for the two Koreas to stay consistent.<br />The South Korean government issued an official response just a few minutes