There have been lively exchanges between the Government and the Ulster Unionist delegations at the Stormont talks over the nature and scope of the crossBorder bodies which would be part of any peace settlement.
British and Irish government sources said that yesterday's disagreement was inevitable and should not be exaggerated. However, unionist sources said that it was ominous.
They also expressed disillusionment that the SDLP appeared to be adopting a "hardline position" on cross-Border bodies with executive powers.
The UUP returned to Stormont for the Strand Two discussions, which focus on North-South relations, after temporarily withdrawing last week in protest at Dublin's position that Articles Two and Three of the Constitution could not be amended until there was a settlement in the North.
Yesterday's meeting lasted for more than four hours and involved lengthy argument between the Minister for Foreign Affairs, Mr Andrews, and the Ulster Unionist deputy leader, Mr John Taylor.
The Government's proposals were dismissed as "over-ambitious" and "unrealistic" by Mr Taylor. He said: "The expectations of the Irish minority are far too high and have to be reduced."
Mr Andrews told the meeting that "the nature, form and extent" of the proposed new bodies needed to "reflect and accommodate the relationships on this island".
Mr Andrews stated that a North/South body would be essential in "establishing a balance of allegiance on the island". It would allow Northern nationalists "the chance to share with unionists the sense that their aspirations and identity are reflected in the governance and administration of their home place". He said that Dublin was committed to being "fair, bold and innovative".
A UUP source, however, predicted that progress would not be made in Strand Two unless Dublin moderated its stance: "Even if our delegation agreed to crossBorder bodies with executive powers, we could never sell it to the wider community," he said.
The Northern Secretary, Dr Mo Mowlam, played down yesterday's exchanges. She said that such disagreements were to be expected.
The DUP deputy leader, Mr Peter Robinson, accused the UUP of play-acting.