President Bush's special envoy on Northern Ireland, Mr Richard Haass, has raised hopes of a breakthrough on the North, saying the republican movement was contemplating "bold actions" that could transform Northern Ireland.
In Dublin yesterday for meetings with the Taoiseach and Minister for Foreign Affairs, Mr Haass said the key to progress was for unionists "to be prepared to recognise bold actions if indeed bold actions are entered into by republicans or anyone else".
While saying he did not know whether they would decide to take these steps, he said he knew "various parties" were considering "steps that up to recently were unimaginableThis is not business as usual for the Northern Ireland peace process. There are big ideas being contemplated".
Speaking to reporters, he said: "If indeed we can help to bring about an end to paramilitary capabilities, and various behaviours or actions that have been associated with paramilitaries, that would be nothing less than a transformation of the political and physical environment of Northern Ireland.
"In that context, I would hope and expect that unionists, including unionist leaders, would acknowledge just how significant such an act was. And that leaders would be prepared to speak out to their constituencies and basically say this is significant, this is the sort of bold step we have sought for all these years and we should acknowledge that."
Mr Haass will bring his message to Belfast today where he will meet leaders of the main parties, as well as the Ulster Unionist Party leader, Mr David Trimble.
He said yesterday that he hoped that "if sufficient bold steps are put together by various parties that it would provide a pathway or an opening for unionists as well as others to agree to a resumption of the institutions at Stormont".
Meanwhile, republicans are continuing to indicate that major movement is possible from the IRA, but only in the context of the implementation of outstanding elements of the Belfast Agreement, such as demilitarisation, policing and devolving responsibility for policing and justice to the Executive.
A senior Sinn Féin figure yesterday said speculation about an imminent IRA initiative to help restore devolution was "unfounded" but suggested a positive British response to republican demands would be reciprocated by the IRA.
"If the British government are coming forward publicly with their part of the equation, vis-à-vis the full implementation of the agreement, it is my view that that will challenge many people within our society, including the armed groups.
"Then the armed groups I think would be very wise to indicate what they are prepared to do to further enhance the peace process."
Speaking to journalists yesterday, the Sinn Féin source said republicans needed to be convinced of London's willingness to implement the agreement.
"Dramatic demilitarisation" in south Armagh and along the Border, to such an extent that it became a "conversation piece", would be of "huge significance".
He refused to be specific about what the IRA might do if the British government met its demands, but added: "From a republican perspective we are prepared to relay such an eventuality to the IRA, and the IRA will have to make their judgement on that, and decide if they should respond to it."