The British Prime Minister Mr Tony Blair said tonight he was satisfied with the report from General John de Chastelain that the IRA had begun the process of decommissioning its arms.
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Mr Tony Blair
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He said the IRA's statement was of "fundamental significance" for Northern Ireland.
Mr Blair told reporters in Downing Street that the Northern Ireland government could now be properly re-established.
"This is a peace process that despite it all is working."
Mr Blair said that a "real process of normalisation" was now possible in areas still marked by "intrusive security".
"We are a long way from finishing our journey but a very significant milestone has been passed."
Mr Blair paid tribute to the Sinn Féin leadership of Mr Gerry Adams and Mr Martin McGuinness, and made particular mention of the UUP leader, Mr David Trimble, who he said stood firm throughout the crisis within the peace process.
He said loyalists and "lawless, splinter republican groups" now had no option but to follow the IRA’s lead and give up terrorism.
"The only aims that really can succeed are those pursued by democratic debate," he added.
"They can and they must now move on this issue," he added.
Mr Blair warned that "extremists" on both sides may try to wreck the peace process with renewed violence.
"Of course, if you are living in one of the communities like North Belfast, racked still in conflict, the peace process seems hollow, but for the majority of people in Northern Ireland today, life is better," he said.
"Yes, the peace process is not perfect, but it is a darned sight better than the alternative, which is no process at all.
"It is worth it, one, when you can actually make progress, and two, when we see what the alternative is - and I think we only need to look across to the Middle East and see what the alternative is when the process breaks down," he said.
It was now up to Mr David Trimble to decide whether he should rejoin the Northern Ireland executive, Mr Blair, but added: "I believe the basis for him doing so is now there."
