There was an increasing belief in Dublin and London last night that the Assembly elections may be postponed and the political process "parked" until the autumn.
The British and Irish governments appeared on the verge of conceding there is little prospect of the IRA providing further clarification of a commitment given by Sinn Féin president, Mr Gerry Adams, yesterday that the IRA "will" end paramilitary activity.
In turn republicans said they had met the governments' demand to say IRA actions "will" end rather than "should" end, but this was rejected because of a "unionist veto exercised by David Trimble".
The Government is still maintaining the election should proceed on May 29th but the British Prime Minister, Mr Tony Blair, under apparent pressure from Ulster Unionist Party leader, Mr Trimble, was last night weighing up whether now is the time to defer it.
"If we don't get any more movement from the IRA, then a major question mark obviously hangs over the Assembly election," a London source told The Irish Times last night. He repeated that Mr Blair's preference was for an election that would clearly elect MLAs to an Assembly and Executive that could properly function.
High-level contact involving the Taoiseach, Mr Ahern, Mr Blair, Mr Adams and senior officials continued last night, but Dublin and London sources admitted that the general mood was "negative".
Sources said the governments were considering a number of options, including publishing the joint Hillsborough blueprint for restoring devolution and then postponing a further major effort to revive the peace process until the autumn.
The British government insistence that the IRA specify that it will end so-called punishment beatings, arms procurement and targeting is the last remaining hurdle to be overcome, before London and Dublin will accept that the IRA is committed to ending all activity.
Mr Adams's statement yesterday that "the IRA leadership is determined that there will be no activities which will undermine in any way the peace process and the Good Friday Agreement" is not clear enough, according to Downing Street.
While the Government emphasised that London and Dublin were at one on what needed to be done, it was clear last night that the demand for further clarification of IRA intentions was being driven by Downing Street. It is understood that Mr Blair is seeking the clearest possible spelling out of IRA intentions in an effort to reach a form of words that Mr Trimble could "sell" to his party.
While Dublin appeared less fixated on further clarification from Sinn Féin or the IRA, one Dublin source said: "Why do they continue to be cryptic in their wording?"
Sinn Féin's chief negotiator, Mr Martin McGuinness, said the IRA's peaceful intentions were clear and unambiguous and this was made explicit in the statements of Mr Adams on Sunday and yesterday.
He refused to comment on whether the IRA meant it would no longer engage in such actions as "punishment" attacks, smuggling in weapons and targeting. The time for "words games" is over, he said.
A Government spokeswoman described the Adams statement yesterday as "a helpful contribution".
Governments still not happy with Sinn Féin answer: page 6;
Stalemate feared in absence of explicit IRA statement: page 7;
Editorial comment: page 17