THE loyalist ceasefire seems set to continue provided there is rapid progress in the multi party talks and the British government offers concessions on the release of UVF and UDA prisoners.
Senior loyalist sources have indicated that after a week of intense debate, the Combined Loyalist Military Command has decided not to retaliate for the IRA bombing of British army headquarters in Lisburn.
They said the CLMC had accepted the advice of the Progressive Unionist and Ulster Democratic parties that loyalists should retain the moral high ground.
By maintaining their cessation they would ensure that that IRA was seen as wholly responsible for the deteriorating political situation, the sources said. However, it is believed that UVF and UDA units will remain on the alert and the situation will be reviewed if there is another IRA attack.
The CLMC has met at least three times since Monday's IRA bombing. However, it is not known if it will issue a statement outlining its position.
Yesterday was the second anniversary of the loyalist ceasefire. A rally planned for Belfast was cancelled. Loyalist sources said there was a reluctance to make an immediate commitment in such an unstable situation.
Speaking at his party's annual conference in Belfast at the weekend, PUP spokesman Mr David Ervine appealed to loyalists to continue to act in a "restrained manner" and ignore the IRA. He said there was an onus on both governments and the North's constitutional politicians to ensure progress at multi party negotiations. The responsibility for peace did not lie with the CLMC, he said.
"They can give us the absence of violence but they can't give us peace. There must be movement, in the talks and I hesitate to say it in case it's misunderstood, there had better be movement in the talks."
The constitutional politicians must ensure there were "no prevarications, no nonsense, no playing games and no trying to exclude the people who may or may not hold the loyalist ceasefire together", he warned.
The DUP has insisted that there will be no substantive negotiations with the fringe loyalists until weapons are handed over.
Mr Ervine also said stringent security measures against the IRA would improve the situation for loyalists. His colleague, Mr Billy Hutchinson, said concessions from the British government one the release of UVF and UDA prisoners would also help.