The Minister for Foreign Affairs, Mr Andrews, has acknowledged that his comments about cross-Border bodies with executive powers were "misjudged". He said he would never repeat them. His admission has been welcomed by the British government. However, unionist politicians last night remained unimpressed and accused Mr Andrews of jeopardising the Stormont talks.
The Ulster Unionist MP, Mr Ken Maginnis, said the Taoiseach should replace him. A meeting between Mr Andrews and the UUP and fringe loyalist parties at Stormont Castle yesterday was described as "bitter and angry".
Sources said the controversy meant that a planned meeting between the parties and the talks chairman, Senator George Mitchell, had to be abandoned, although informal discussions took place. Both governments and the parties will meet today for a full plenary review of the talks, which is expected to last until tomorrow.
Irish Government sources said the process was still on track but unionists said progress had been seriously hindered.
Mr Maginnis said that despite Mr Andrews's statement yesterday, he had "created an enormous roadblock" in the way of peace and the UUP could not tolerate such "trouble-making". While Mr Andrews now clearly judged his comments to have been unwise, it was difficult to believe he had not meant them.
Mr Andrews met unionist politicians at the Stormont talks yesterday in order to reassure them about his position following the controversy over his BBC Radio Ulster interview last weekend when he referred to the establishment of cross-Border bodies with executive powers "not unlike a government".
After yesterday's meeting, Mr Andrews said he had told the unionists that he regretted using that phrase. "If I could unsay that interview, I would - I would not use the word `government'. "
But he said he had been quoted out of context. "I never did, nor never would, propose a `third source of power', as has been suggested. I have made it clear in a number of interviews that any North-South body would be subordinate to the two legislatures and would be fully accountable to both." He said such matters were for "discussion, negotiation and agreement" at the talks.
The British government last night moved to defuse the situation. The North's Minister for Political Affairs, Mr Paul Murphy, said: "I know that anxieties have been expressed about these remarks. Mr Andrews has made clear that he was misunderstood.
"I believe his clarification is very helpful. He has emphasised that new North-South co-operation arrangements he had in mind would be subordinate and accountable in Northern Ireland to a devolved assembly and that they would operate by unanimity."
Mr Murphy said the interests of unionists were not in danger, and he repeated that any agreement needed majority support in both communities. The British government would not "be involved in negotiations that were threatening to unionists", he added.
However, the UUP leader, Mr David Trimble, said clarification was needed from the Taoiseach on the status of Mr Andrews's comments. UUP sources claimed that the Minister's remarks had placed Mr Trimble under severe pressure from internal and external critics.
"David met Bertie Ahern 10 days ago and came out saying he thought he could do business with Dublin," said one. "Now Andrews's comments have made his judgment seem totally askew. At the moment the whole thing is a mess and our party's room for manoeuvre has been greatly curtailed."
Before meeting Mr Andrews yesterday, Mr Trimble had said the Taoiseach should replace him with "somebody sensible".