The Ulster Unionist leader, Mr David Trimble, has indicated that his party will pursue a strategy of negotiating with all the participants except Sinn Fein in the Stormont talks.
Speaking to reporters after his party had lodged an indictment of Sinn Fein for alleged breach of the Mitchell Principles, he said: "There is no need for us to engage with Sinn Fein at all." Comments made by the UUP spokesmen about the Labour government and its role in bringing Sinn Fein to the negotiating table were said to have given offence to the Northern Secretary, Dr Mo Mowlam.
It was reported that there was a "blazing row" during a meeting between Dr Mowlam and the UUP security spokesman, Mr Ken Maginnis.
Although reports that Dr Mowlam walked out of the meeting were officially denied, other sources reported that the Northern Secretary had said; "I'm not going to have an argument, I'm leaving" and walked out. This occurred after Mr Maginnis suggested she was being very unhelpful and was more concerned about having Sinn Fein in the process than the UUP. "She did apologise later," sources in the talks said.
It was confidently expected among the talks participants that the UUP indictment would be rejected by the two governments today. However, the language used in the notice of rejection will be carefully watched by the UUP.
It now appears likely that a procedural motion from the two governments to move into substantive negotiations will be passed. The motion will provide for the setting-up of the independent body to verify paramilitary disarmament, probably chaired by Gen John de Chastelain.
Although unionists are anxious to see Gen de Chastelain in this post, they would also wish him to remain as chairman of the Strand Two negotiations on North-South relations. There is a strong view on the nationalist side that the general cannot do both jobs.
All the parties in the talks have been invited to make changes in the procedural motion and there was speculation that it would be adopted unanimously. Mr Trimble, meanwhile, was outlining how his party could remain in the talks without having to deal with Sinn Fein. "We can remodel the process within the existing form," he told the UTV Live news programme.
"We are there not to negotiate with Sinn Fein and there is no obligation for us to be present the whole time. We will negotiate with the government and other parties. We can pick and choose bilaterals."
Mr Peter Robinson of the Democratic Unionist Party said in a statement: "Trimble and company have ditched every commitment they gave and every principle they held. Boy David may come out beating his chest but in reality he is beating a retreat."
Meanwhile, the growing tension in republican circles was seen in a statement by Republican Sinn Fein claiming the Provisional IRA had seized a weapon from a "true republican" in the Ardoyne area of Belfast.