There were indications early this morning of a possible movement towards a deal that could break the Northern political deadlock, following talks at Hillsborough Castle involving the British Prime Minister, Mr Blair, Sinn Fein, the SDLP and top-ranking US and Irish officials.
At Hillsborough early today, Mr Blair, President Clinton's security adviser Mr Jim Steinberg, and senior Irish officials including Mr Dermot Gallagher and Mr Martin Mansergh, were continuing talks in preparation for further critical negotiations today.
Around midnight, Sinn Fein president Mr Gerry Adams, accompanied by Mr Martin McGuinness, concluded his part of the negotiations. He said Sinn Fein would be back for further talks this morning and, while he did not report any conclusion, he indicated progress was being made.
"There has been good, constructive, intense, frank discussions,' said Mr Adams.
An SDLP delegation led by Deputy First Minister Mr Seamus Mallon also met Mr Blair for over two hours at Hillsborough last night. They made no comment as they left.
Mr Blair last night briefed the Taoiseach, Mr Ahern, and President Clinton on his latest initiative to persuade the SDLP, Sinn Fein and the Ulster Unionists to sign up to a series of measures designed to break the deadlock.
Mr Blair also held intensive talks with Mr David Trimble at Westminster yesterday.
The Northern Secretary, Mr Mandelson, signalled a British willingness to trigger a series of reciprocal actions involving movement on demilitarisation, IRA re-engagement with the decommissioning body, policing and the lifting of the Ulster Unionist ban on Sinn Fein ministers attending North-South Ministerial Council meetings.
British, Irish and some unionist and nationalist sources said a "real chance" now existed to end the political log-jam, but that it would involve risk-taking, particularly by the IRA, Sinn Fein, the British government and the SDLP.
Mr Blair is meeting a number of the smaller parties at Hillsborough this morning during which he will also discuss with Mr Mandelson and senior British officials the chances of the main parties supporting a new package aimed at safeguarding the Belfast Agreement.
It is understood that Mr Blair tried to persuade the SDLP to endorse the police reform proposals. A key demand here of the SDLP is the instigation of independent inquiries into the killings of Pat Finucane, Rosemary Nelson and Robert Hamill.
