The British Prime Minister, Mr Tony Blair, is to meet leaders of the parties from the Northern Ireland Assembly at Stormont this morning amid reports of significant progress in talks on North-South bodies and new departmental structures.
However, the Ulster Unionists are said to be unhappy with an SDLP proposal for a cross-Border institution to promote industrial development on the entire island.
A senior UUP source last night said: "We can't stomach the idea." Among the difficulties cited was lower corporation tax in the Republic, which is seen as an unfair advantage. Speculation is mounting that a cross-Border institution may be agreed for tourism.
Mr Blair had a working dinner with the Northern Secretary, Dr Mo Mowlam, on their arrival at Hillsborough Castle last night. Following his meetings with the various party leaders this morning, Mr Blair will fly to Dublin. He will make a courtesy call on the President, Mrs McAleese. Jointly with the Taoiseach, Mr Ahern, he will be admitted as an honorary bencher of the King's Inns. Tonight the Blairs will be guests of honour at a dinner in Dublin Castle.
Tomorrow Mr Blair will address the Houses of the Oireachtas at Leinster House and have a working lunch with the Taoiseach at Government Buildings.
Meanwhile, there is a widespread expectation that unionist objections to expanding the number of Northern government departments from six to 10 can be overcome in negotiation.
There is said to be agreement between the UUP and the SDLP that a separate department of equality should not be set up but should be an area of responsibility for the First and Deputy First Ministers.
Senior political sources said a "lot of progress" had been made on North-South issues: "There certainly is movement." Next week would see a "big push" to complete the negotiations. With Mr Trimble due to leave for the US on December 4th, the talks have a particular urgency. The White House is reported to have stepped up its involvement in the peace process in recent weeks.
Following agreement on as many as eight North-South bodies and 10 new ministerial posts, the focus will shift back to the issue of decommissioning. Pressure will intensify on both republicans and unionists to soften their hardline stances.
This morning, Mr Blair is due to meet RUC officers who were intimidated from their homes because of the role played by the police at Drumcree this year. He is also expected to meet a victim of the Omagh bomb atrocity.
The Sinn Fein president, Mr Gerry Adams, has urged the two governments to act jointly to halt the "drift" in the peace process. He said Mr Blair should use his Oireachtas speech "to make it clear where he stands on the agreement".