The British government is understood to be prepared to look again seriously at the Police (Northern Ireland) Bill to see what amendments could be made to resolve the controversy over the naming of the new Northern Ireland Police Service.
The Taoiseach, Mr Ahern, spoke with the British Prime Minister, Mr Blair, by telephone yesterday. Mr Ahern said the proposed reform did not go far enough to attract nationalists and republicans to join the force.
"We have not reached that position yet and I made that forcibly clear," Mr Ahern said after the 20-minute conversation. "I did agree that we would continue the discussions at official level over the next number of days to see if we can find a satisfactory way of dealing with this issue, and we are going to try and do that calmly."
A Government source said last night that both leaders agreed that, in its current form, the Bill was not acceptable to either side, and indicated that in the next few days the British government will be looking at what amendments could be tabled to solve the difficulties nationalists have with the Bill in its current form.
In a move which clearly angered the Government, the Northern Secretary, Mr Peter Mandelson, said in the House of Commons on Tuesday that the RUC name would be retained in the formal title of the new police service.
This prompted the Northern Ireland Deputy First Minister, Mr Seamus Mallon, to accuse the British government of being involved in "political chicanery" over the issue.
Mr Ahern said yesterday that he expressed to Mr Blair the concerns of Mr Mallon, and of republicans and nationalists, about proposed changes to the RUC. Mr Ahern said people wanted to see reform of policing in the North which would allow everyone to recommend that young nationalists join the RUC.
He said: "I think the British Prime Minister understands as well as I do that if the Patten process is to work it can only be seen as successful if we see the participation of all communities within the new Police Service of Northern Ireland.
"That is what we have to achieve. Otherwise, all of the work put in by Chris Patten and his excellent commission in the first place . . . will not be successful."
Mr Ahern also spoke yesterday morning with Mr Mallon. "He feels very strongly about it. But I think he is also very committed to try and find a resolution," he said.
Downing Street denied there were clear differences between the two governments over the Bill, but stressed that work would continue at official level to reach a satisfactory solution.
A Downing Street spokesman said Mr Blair and Mr Ahern had "absolutely no difficulty" in working towards resolving sticking points. "I wouldn't in any way characterise it as a call that reflected animosity."
However, the spokesman refused to discuss the possibility of, or comment on, any further amendments to the Bill with a view to defining the "operational purposes" of the new name of the police service.
Talks between Irish and British officials will continue in the coming days and the two government leaders will be "keeping in close touch". The Minister for Foreign Affairs, Mr Cowen, and the Northern Secretary will meet in the next two weeks.
The Police Bill will be before the House of Lords on July 25th, and amendments can be tabled at the committee stage.
Meanwhile, Mr Mallon accused Mr David Trimble yesterday of allowing himself to be used to peddle propaganda. He was speaking after the North's First Minister was quoted in the Irish News as suggesting Mr Mallon had threatened to resign his post over the policing issue.
Mr Mallon said he was surprised Mr Trimble had allowed himself to be used in such a manner, which he described as malicious.