From CNN Ticker Producer Alex Mooney

WASHINGTON (CNN) --In an early glimpse of a potential 2008 match-up, Sen. John McCain, R-Arizona, sharply criticized Sen. Hillary Clinton, D-New York, over who is to blame for North Korea's reported acquisition of a nuclear weapon.

"Some of the reasons we are facing this dangerous situation is because of the failed policies of the Bush Administration," Clinton, a potential presidential candidate, said Monday at the New York City Columbus Day parade. "I regret deeply their failure to deal with the threat posed by North Korea."

McCain, who is also considering a White House run, issued a strong rebuke of his senate colleague Tuesday, describing her husband's dealings with the North Koreans a "failure."

"I would remind Senator Clinton and other critics of the Bush Administration policies that the framework agreement of the Clinton Administration was a failure," McCain said of former President Bill Clinton. "We had a carrots and no sticks policy that only encouraged bad behavior. When one carrot didn't work, we offered another."