There will be no change in British government policy towards the release of loyalist prisoners, a Downing Street spokesman has said. The statement was made as the Northern Secretary prepares to meet the Progressive Unionist Party today in an attempt to dissuade it from pulling out of the talks process.
The meeting between Dr Mo Mowlam and the PUP, the political wing of the outlawed UVF, follows loyalist anger at what it says is the Irish Government's more favourable treatment of republican prisoners than the British government's treatment of loyalist prisoners.
The PUP is not optimistic that today's meeting in Belfast will resolve its problems. The party says it is likely to withdraw from the talks when they resume in the new year.
It has accused both governments of keeping the parties at the talks in the dark and making the real decisions behind closed doors.
The party was particularly angry that it was not informed last week of the Government's decision to grant early release to nine IRA prisoners.
Irish sources in Britain last night indicated there could be further transfers of republican prisoners from British to Irish jails. It is understood that seven prisoners, including four men sentenced in July to 35 years for conspiracy to cause explosions, will be transferred within weeks.
The PUP's concerns were among the topics discussed by the Taoiseach and the British Prime Minister during a 45-minute meeting yesterday. Mr Ahern and Mr Blair met before the Newcastle versus Manchester United football match in Newcastle, which both men were attending.
After the meeting a Downing Street spokesman said that although the meeting was "warm and friendly" there would be no change in British government policy on the release of loyalist prisoners.
An Irish Government spokesman said the two leaders discussed "all aspects of the prisoners issue" including the granting of early release and the transfer of sentenced prisoners from Britain to Ireland.
They also discussed increasing the pace of negotiations when the talks resume, but the parties have yet to agree an agenda for the post-Christmas sessions.
Speaking about his party's position on the talks, Mr Billy Hutchinson said he thought today's meeting with Dr Mowlam would be futile.
"It's time to tell her to forget about it," he said. "We are not going to be part of a process which is going to exclude us."
While loyalist sources say they believe that the PUP will not be at the talks in the new year, senior Ulster Unionist sources have accused the loyalist party of "crying wolf" and copying the behaviour of republicans when they had difficulties with the peace process.
"The PUP are not really going to walk away from this process," one source said. "Where would they go?
"They were letting off steam about the prisoners issue and they said they probably wouldn't return to the talks. The danger is that they have backed themselves into a corner."
Mr Gary McMichael, the leader of the Ulster Democratic Party, the UDA's political wing, said that while he shared some of the PUP's concerns that the peace process was favouring republicans, his party was committed to remaining at the talks table.