North Korea, in an overture to end 40 years of hostility with South Korea, proposed Tuesday that the divided nations' parliaments meet Aug. 26 to hammer out a peace treaty and discuss the North's possible participation in the Seoul Summer Olympics.A letter offering to work on a non-aggression pact was released Tuesday as 10,000 flower-waving North Korean students traveled to a rendezvous at the truce village of Panmunjom.