Amid speculation linking a possible move on IRA weapons to a timetable for demilitarisation, the British government has offered to be "flexible and imaginative" on the issue of the British army presence in Northern Ireland.
The Northern Secretary, Mr Peter Mandelson, used weekend interviews to try to reassure republicans that outstanding elements of the Belfast Agreement would be implemented.
He also indicated this could include a timetable for the scaling down of the British army presence - a key demand for republicans.
While Sinn Fein has complained that crucial aspects of the agreement are not yet in place, Mr Mandelson said all elements of the agreement would be enacted.
A number of Sunday newspapers reported that before Mr Mandelson suspended the political institutions last Friday week a deal was on offer from the IRA linking some form of decommissioning to demilitarisation.
A British source, responding to these reports last night, said British demilitarisation could be on offer, but based on the level of security threat.
"The British government is prepared to be flexible and imaginative on this issue. Clearly, though, moves on demilitarisation would be influenced by moves on IRA decommissioning," he added.
The Dublin-based Ireland On Sunday reported that before the suspension the IRA agreed to take part in a day of national reconciliation, to state that its war was over and to put its arms beyond use. This was to take place in parallel with a British commitment to demilitarise within 18 months.
There were to be three stages to this reciprocal process, according to the newspaper. First, within three months the IRA would state its war was over.
This would be followed by a day of national reconciliation during which the IRA, loyalist paramilitaries and the British army would destroy token amounts of arms to demonstrate the conflict was over.
The third step was an IRA commitment to put its weapons beyond use in tandem with British demilitarisation over a period of 18 months.
The Irish Government would only describe this report as "speculation", while the British source said the report was confusing the IRA proposals to Gen de Chastelain on Friday week with other "ideas that may or not have been around at the time".
Nonetheless, in weekend interviews Mr Mandelson gave commitments in relation to the Patten proposals on policing, the Criminal Justice Review, and action promoting equality and human rights. He also indicated decommissioning and demilitarisation could be linked. "I do not rule out attaching timeframes to demilitarisation, but that has to be in the context of the [IRA] threat going away and politics working. The idea that the British government wants the military to hang in there and talk tough, irrespective of the political process, is nonsense," he told the London Observer.
Similarly, he told BBC Radio Ulster's Insight programme: "Implementation (of the agreement) depends on everything in one form or another going ahead together. That's why, for example, on the part of the British government I am going ahead with . . . the implementation of Patten, the human rights and equality work that we are undertaking, the publication shortly of the Criminal Justice Review, normalisation of security - that too will go ahead and continue apace as the security threat allows."
Mr Mandelson said relations between him and the Irish Government were "not particularly bad", despite the reports of serious tensions following suspension of the political institutions.
"There is a lot of frustration, a lot of disappointment, but we will get over it. We have to get over it. We have to work together knowing that there is no alternative to the agreement."
Mr Mandelson described republican criticism of him as "republican propaganda which comes with the turf".
The Northern Secretary said it was probably time for a cooling off period so that progress could take place when people had reflected and rested.
An Irish Government spokesman said talks between the Government and the political parties continued into Saturday and would resume today.
He said Mr Ahern, was expected to speak to Mr Blair today or tomorrow. Mr Mandelson travelled to the US last night for meetings with "key opinion formers" in Boston, New York and Washington. The former Sinn Fein minister, Mr Martin McGuinness, is also travelling to the US this week, while the Ulster Unionist Party leader, Mr David Trimble, completing a lecture tour there, is expected in Washington today to meet Mr Sandy Berger, President Clinton's national security adviser.
Mr Trimble, writing in yesterday's Sunday Tribune, was notably conciliatory in tone. He said of the second de Chastelain report containing unspecified more positive proposals from the IRA on decommissioning (that were withdrawn after the suspension of the institutions): "My hope is that this is not the last word from the IRA."
He added: "Most unionists long ago accepted that the Belfast Agreement is as good as it gets. The wider nationalist community now needs to persuade the republican movement that the same is true for them."
Meanwhile, following a Sinn Fein ardchomhairle meeting in Dublin on Saturday, party vice-president Mr Pat Doherty repeated that Mr Mandelson acted illegally and unilaterally in suspending the political institutions.
