THE GOVERNMENT was of the belief early today that the abrupt ending of the 17 month old republican ceasefire was the result of a "conscious decision" by the IRA.
But the Taoiseach, Mr Bruton, said that it was impossible to discern whether it represented "a permanent return to violence or a short term measure".
The Cabinet's sub committee on Northern Ireland will meet in emergency session at 10 a.m. today to continue its assessment of the consequences of the unexpected IRA announcement and the London bombing last night. It is understood that no clear strategy has been put in place yet to attempt to salvage the peace process.
Mr Bruton spoke personally to Mr John Major and President Clinton late last night. Officials in the Taoiseach's Office spoke to the Sinn Fein president, Mr Gerry Adams.
After the IRA announcement, but before the London explosion, the White House was informed by Mr Adams that he was hearing very disturbing news" and would call back later. Mr Adams did not say that a bomb was due to go off.
The Minister for Justice, Ms Owen, last night cancelled a plan for the release today of a further nine republican prisoners for Portlaoise.
Following an emergency Cabinet meeting late last night, which was attended by the Garda Commissioner, Mr Patrick Culligan, the Taoiseach gave a commitment to work in every possible way to get the peace process back on track. He insisted that the set back would be overcome "if we "are determined enough and apply sufficient dedication and imagination to it".
Members of the Cabinet were "stunned, upset and surprised" by the IRA statement, sent to RTE, that the complete cessation of military operations had ended at 6 p.m. They were even more shocked by the London bombing an hour later.
The Taoiseach called on "all who may have any influence on those responsible for this appalling act" to use that influence publicly, as well as privately, to ensure that no further acts of violence took place.
No indication of the perilous state of the ceasefire was given to the Government at its meeting with Mr Adams and a Sinn Fein delegation last Wednesday.
President Clinton, in a statement, said that "no one nor no one organisation" had the right to deny the people of Northern Ireland the ability to enjoy their daily living without the threat of the bomb and the bullet.
Mr Major challenged the Sinn Fein leadership and the IRA "to condemn immediately and unequivocally those who planted this bomb and any suggestion that the ceasefire is now over".
Mr Adams called on all sides to "hold their nerve" and remain calm. "Efforts to build a peace settlement must be redoubled", he said in Belfast last night.
Loyalist paramilitaries were urged not to retaliate by Mr Gusty Spence, who announced their ceasefire in October, 1994. The Combined Loyalist Military Command is to meet over the weekend to consider the IRA's renewal of violence.
The Fianna Fail leader, Mr Bertie Ahern, said that the breakdown of the ceasefire was an "absolute tragedy". He has called a" meeting of his front bench for 11 a.m. today.
The Government first learned of the IRA announcement when informed by RTE shortly alter 6 p.m. Attempts began immediately to obtain confirmation of the statement. "We received indications that the situation could be serious", one official said, "but nothing absolutely definitive until the bomb went off."
Mr Bruton spoke to the Tanaiste shortly afterwards. Mr Spring was on board the Government jet on his way back from the US at the time.
Senior Garda sources area understood to have been given no indications that the ceasefire was about to be ended by the IRA, but British security services had recently been reporting a build up of IRA activity in Britain and Northern Ireland.