Democratic Unionist leader Rev Ian Paisley has again refused to indicate whether his party will enter into a powersharing arrangement with Sinn Féin to restore the North's Executive.
After a lengthy meeting with Northern Ireland Secretary Peter Hain at Stormont, Dr Paisley said: "I think we are making progress, I hope we will succeed in what we are seeking to do."
Ian Paisley
But he warned: "It will rest with the IRA delivering, but I think we are seeing progress, and I am encouraged this morning," he said.
Asked whether devolution would occur by the deadline of March 26th, he said: "I can't really answer that. We are making progress. I have done all I can do, and I have gone more than a second way."
The talks with the DUP are the latest in a two-day series Mr Hain is having to urge the parties towards agreement on restoring the executive. He met Sinn Féin yesterday and has also held talks with Minister for Foreign Affairs Dermot Ahern.
Mr Paisley's remarks came as Northern Ireland's newly elected Assembly members met for the first time since the polls
Sinn Fein's Martin McGuinness announced that he had written to Mr Hain confirming he was ready to serve as Deputy First Minister alongside Mr Paisley as First Minister, and said the public expectation was that there would be a powersharing government in place by the deadline.
Assembly members met in the Stormont chamber for just 51 minutes, with only one item on the agenda — registering of members and re-starting their salaries.
Pay is restricted to just over £31,000 while the Assembly remains in transitional form and will only be put up to the full £42,000 when devolution is achieved.
Mr Hain said yesterday that Sinn Féin president Gerry Adams's call for anyone with information about the murders of two men in north and west Belfast to give it to police showed he was honouring republicans' decision to back policing.
Speaking after talks at Hillsborough Castle with Mr Ahern, the Northern Secretary said a financial package could be put together. Mr Hain will be with Chancellor Gordon Brown when he meets the local parties on Thursday next week - four days before the March 26th deadline.
"The Chancellor will be prepared to provide extra assistance if that is what is needed to get the parties across the line," he said.
Dr Paisley said today achieving a financial package from the both government before the restoration of devolution was all important. He said he expected to have a private meeting with Chancellor Gordon Brown tomorrow, prior to the meeting all the parties have with him next week.
"We must have a settlement. We have made promises to the electorate, and we must seek to fulfil those promises."
He said problems were not insurmountable and predicted that stopping the introduction of water charges next month would be top of his list and was possible.