THE Apprentice Boys' governor, who was involved in unsuccessful meetings with the Bogside Residents Group and local church leaders in an attempt to reach an agreement before Saturday's parade, said he now feared the worst.
"I feel very sad, so very sad, that all the efforts we put into trying to find a satisfactory arrangement have ended with the law breakers winning and the law keepers losing," said Mr Alistair Simpson.
"I thought that the majority of the people in this city wanted a peaceful demonstration on Saturday. That's what I wanted. But now it seems that the threats made by Mr Mac Niallais of the Bogside Residents' Group have paid off.
"We tried everything to ensure that nobody would have been offended by our plans to have 250 local Apprentice Boys marching the circuit of the walls, but now to get your own way it seems you have to threaten people. We conceded everything we could, but we could not give a provincewide consent. It just wasn't physically possible.
"There is no sense now in trying to make a deal. The whole thing is up in the air. It's a sad day for Northern Ireland and for the Protestant people of this city.
"They now feel sealed off as much as the walls. I fear for Saturday and I'm sad for Saturday because I don't know what Saturday is going to bring to this city," Mr Simpson said.
Meanwhile, the Catholic Bishop of Derry, Dr Seamus Hegarty, said everyone in Derry had to pull back from a very serious situation. It is understood the leaders of the main churches in Derry will make a joint statement later today.
"At the moment I do not see a way out of the current impasse," said Bishop Hegarty. "It's not easy to say at this moment exactly what is going to happen. It is certainly too close to call.
"The formal talks have ended in stalemate. That, however, does not, I think, preclude the possibility, however remote, that the possibility might be that some key might be found to unlock the present difficulty.
"We are dealing with what could be a very explosive situation at the weekend. Nobody wants that. People must seriously question what their own participation in these events is going to be," he said.
Reasonable people will accept the decision to block off a section of the walls of Derry, the RUC Chief Constable, Sir Hugh Annesley, said in a statement last night.
Sir Hugh said he had to deal with the realities of life, and it was necessary to take this step to deal with the most contentious element of Saturday's proposed parade. If this area was not closed off to both marchers and protesters serious disorder will undoubtedly ensue."