Taoiseach bewildered as North negotiations unravel

Government sources were bewildered last night by the unravelling of the negotiations on the Northern Ireland executive and the North/South bodies.

The Taoiseach, Mr Ahern, said he was "very disappointed" that the progress which appeared to have been made had evaporated during the course of yesterday. He was still prepared to seek a resolution to the difficulties, he added, though it was unlikely that this could be done before Mr Trimble and Mr Hume received their Nobel Peace Prize in Oslo next Thursday.

Sources revealed the nature of the "significant progress" made between the British Prime Minister, Mr Blair, and the North's political parties before he left Belfast at 1 a.m. yesterday.

It was then understood that four of the more contentious North/South implementation bodies out of a total of seven or eight had been agreed in return for the SDLP's concession that the IDA and the Industrial Development Board would not be amalgamated. The area of inward investment would not be part of the trade and business development body. The 10 ministries in the executive were also believed to have been agreed.

The policy areas which were understood to have been agreed for four of the North/South bodies were: trade and business development, EU programmes, tourism and strategic transport.

When the negotiations resumed yesterday morning, however, it became clear that the agreement was unravelling. The unionists, according to Government sources, were insisting that there could be only six North/South implementation bodies, instead of seven or eight, a proposed body on "languages" was being dropped and a body on Irish Lights, covering lighthouses, was being sought in its place.

Following contacts with all of the main talks participants, including Mr Blair overnight and Mr Trimble at 2 p.m. yesterday, the Taoiseach was reported to be bewildered by developments.

There are genuine fears in Government circles that it may not be possible to get agreement on the North/South and ministerial components of the Belfast Agreement before Christmas.