Chris Wallace says North Korea's destruction of liason office indicates nuke talks 'have basically collapsed'

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US in 'close coordination' with South Korea after North Korea blows up liaison office

'Fox News Sunday' anchor Chris Wallace reacts with Neil Cavuto on 'Your World.'

"Fox News Sunday" anchor Chris Wallace told "Your World" Tuesday that negotiations between the U.S. and North Korea over the status of the totalitarian regime's nuclear program "seem to have basically collapsed."

Earlier Tuesday, North Korea's military demolished an inter-Korean liason office in the border town of Kaesong. Pyongyang's KCNA propaganda agency reported that the destruction followed a severing of communication between the two countries.

The Associated Press reported that North Korea had earlier threatened to destroy the office in retaliation for the South’s failure to stop activists from flying propaganda leaflets across the heavily militarized border

"The larger issue," Wallace told host Neil Cavuto, "is that it just seems that for all of the talk about denuclearization, the U.S. and North Korea have very different understandings about what that was."

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President Trump and North Korean dictator Kim Jong Un have held three summit meetings on the topic of denuclearization. The first took place in Singapore in 2018, the second took place in Vietnam last year, with the third taking place a few months later at the Korean demilitarized zone alongside South Korean president Moon Jae In.

"Part of the reason that the North Koreans are taking it out on the South Koreans is that the South Koreans have talked about more economic cooperation [and] even allowing [South Koreans] to go to some resorts in North Korea," Wallace added.

"That was contingent upon progress towards denuclearization. When that fell apart -- the South's cooperation with the North fell apart -- the North took it out on that building in Kaesong."