IN A strong message to Sinn Fein, Sir Patrick Mayhew has again agreed that the talks process "should be inclusive of all parties" committed to purely peaceful and democratic procedures.

Insisting that British policy was not to seek "victory" or exclude Sinn Fein permanently the Northern Ireland Secretary reaffirmed London's commitment to "a comprehensive agreement" and cited the Joint Declaration and Framework Documents as proof of government willingness "to take the lead".

Speaking in Manchester, Sir Patrick said the basis for real negotiations already existed. "What is required for Sinn Fein to join them is an unequivocal restoration of the IRA ceasefire." He said the party "must establish their commitment to exclusively peaceful methods and show that they abide by the democratic process. Deeds as well as words will be needed. It is for them to find them". But he added. "People of goodwill all over the world trust they will."

Dublin appeared encouraged last night by the positive tone of Sir Patrick's speech which responded directly to issues raised on Thursday night by Sinn Fein's Mr Martin McGuinness.

Sir Patrick said. "Martin McGuinness says the talks must be inclusive. We agree that they should be inclusive of all parties which make the necessary commitment to rely on peaceful and democratic procedures alone.

Indicating possible convergence on the vexed question of arms decommissioning, Sir Patrick continued "Martin McGuinness says that decommissioning must, without blocking progress, be dealt with to the satisfaction of all the participants in the process of negotiations. We say the way forward is for decommissioning to take place in accordance with the recommendations of the Mitchell Report."

Sir Patrick added "Martin McGuinness says that if the conflict is to be ended permanently, and I note his use of that word, all should embrace the process in good faith, facing the challenges with imagination, honesty and flexibility. That is our approach, building on the rocks of democracy and consent.

On Mr McGuinness's invitation to the two governments to "take the lead in providing the dynamic" in pursuit of a political accommodation, Sir Patrick said. "He points to a wide ranging agenda including the development of arrangements and structures which must afford to all, as the Taoiseach said, secure and satisfactory expression and protection in all spheres of public life. That is what we have been doing in all the steps I have described including the Joint Declaration, the Frameworks for the Future, and the painstaking laying of the foundations for the talks process now under way.

And on negotiations, Sir Patrick told his audience "Finally, Martin McGuinness said that real negotiations are the only way forward. We agree wholeheartedly. And that must mean dependably repudiating the bomb and the bullet and establishing a definitive commitment to peaceful methods."

Geraldine Kennedy, Political. Correspondent, writes Government spokesmen refused to make any public comment on the exchange between Mr Mayhew and Mr McGuinness last night.

Informed sources privately described both statements as "potentially helpful". They view the public exchange as a prelude to a possible statement from the British Prime Minister, Mr John Major, if he can be assured that another IRA ceasefire is on the cards.

The Tanaiste, Mr Spring, is expected to test the British government's bona fides on a new ceasefire at a formal Anglo Irish Inter Governmental Conference meeting in Belfast on Wednesday.

Following the recent exchange, there is optimism in Government circles that if a ceasefire is possible, it could be called before Christmas.