The British and Irish governments are exerting strong pressure on the IRA to move to help restore devolution after direct rule from London, with a strong input from Dublin, returned to Northern Ireland on the stroke of midnight.
The First and Deputy First Ministers Mr David Trimble and Mr Mark Durkan and the other Executive ministers were stripped of their powers as control reverted to the British government.
The Taoiseach, Mr Ahern, and the British Prime Minister, Mr Tony Blair issued a strong joint statement, effectively acknowledging that breaking the deadlock primarily rested with the IRA.
Mr Ahern and Mr Blair said: "It is now essential that the concerns around the commitment to exclusively democratic and non-violent means are removed.
"The time has come for people to clearly choose one track or the other," added the Taoiseach and Prime Minister.
London is understood to be particularly pleased that Mr Ahern was willing to sign up to so strongly-worded a statement that was critical of the IRA, and by implication of Sinn Féin.
Last night, US President George Bush said he joined Mr Blair and Mr Ahern in condemning sectarian violence and supported the "difficult but necessary" decision to suspend the Executive and the Assembly.
"I welcome the commitment of Prime Minister Blair and Irish Prime Minister Bertie Ahern to restore confidence between the parties and peoples of Northern Ireland, hold elections, and reinstate power-sharing as soon as is possible.
"I join their condemnation of sectarianism and violence and echo their call for all parties to make unequivocal their commitment to exclusively peaceful and democratic means for pursuing their interests. There is simply no place for paramilitaries in a democratic society.
"I also applaud the two governments' recognition of the central importance of policing and the need for continued policing reform," Mr Bush said in a statement.
Two new British ministers, Mr Ian Pearson and Ms Angela Smith, were appointed to join the Northern Secretary, Dr Reid, and his colleagues, Ms Jane Kennedy and Mr Des Browne.
They will carry out the work previously performed by Mr Trimble, Mr Durkan, 10 ministers and two junior ministers, with the consultative assistance of several Assembly committees.
Dr Reid is anxious to demonstrate that he will be a "hands-on" Northern Secretary, according to sources.
He is willing to tackle difficult issues, they said, and is considering introducing water charges to Northern Ireland - an issue Executive ministers were considering but were reluctant to enact.
Dr Reid is also considering taking action on sectarian violence and demonstrations in north Belfast.
Mr Trimble and Mr Durkan were working on an initiative but were unable to proceed because they could not win cross-community local support.
All members of the Policing Board are being invited to rejoin the Board, which under suspension must temporarily collapse. Dublin and London also plan to create a mechanism whereby the North-South implementation bodies, which employ about 700 people remain in operation.
Bilateral talks involving the parties and the two governments may begin in an initial exercise aimed at resolving this political crisis.
The former First Minister Mr David Trimble told UTV last night that he would be "very disappointed" if devolution was not restored by February, although privately Sinn Féin, SDLP and DUP politicians believe that it may take considerably beyond that point before there is any hope of an end to direct rule.