The dispute over the Government's proposed cuts to the Defence Forces has been settled, after a meeting between the Chief of Staff, Lieut. Gen. David Stapleton, and the Minister for Defence, Mr Smith.
It is understood the Minister's proposed cut of 1,000 soldiers has been reduced to 750.
The current strength of the Defence Forces has already fallen below its "establishment" strength of 11,500 to 10,900, so a cut of 750 appears to be a compromise around the existing levels.
Yesterday, the Department of Defence said agreement had been reached that the strength of the Defence Forces would be 10,500 but "the Chief of Staff would have the power to recruit a further 250 personnel if he sees fit".
The deal also gives the Chief of Staff decision-making power over recruitment and procurement policy. A White Paper proposal to set up a policy and procurement committee headed by a civil servant, which caused consternation among senior officers, is understood to have been dropped.
The deal appears to ensure the Chief of Staff retains a key role in defining policy on defence issues, with guarantees over recruitment and training.
A statement by the Defence Forces Press Office yesterday, referring to reports that the Chief of Staff had threatened to resign over the White Paper, stated: "The Chief of Staff never threatened publicly to resign over the White Paper."
However, sources close to the negotiations indicated yesterday that Lieut. Gen. Stapleton was considering resignation if the proposed White Paper recommendations had gone ahead.
The prospect of the resignation was raised yesterday by the Permanent Defence Forces Other Ranks' Representative Association (PDFORRA). Its general secretary, Mr John Lucey, said the association was fully behind the Chief of Staff.
The Minister, Mr Smith, had an informal meeting last week with PDFORRA. It is understood he was informed the association stood firmly behind the position of Army management in respect of the proposed cuts.