British soldiers were on full alert in Belfast last night after leading loyalist Johnny Adair was arrested and sent back to jail. The mood on the Shankill Road, the UDA commander's power base, was extremely tense.
The decision to suspend Adair's licence from prison was taken by Northern Secretary Mr Peter Mandelson as fears grew of UDA retaliation for a UVF double killing on Monday.
While the British government is hoping the move will help end the loyalist feud, there are concerns it could increase unrest in the UDA, especially in Belfast.
Mr Billy Hutchinson, of the Progressive Unionist Party, the UVF's political wing, feared the feud would escalate. "I would expect attacks against our party and the UVF," he said.
Sinn Fein urged nationalists to remain vigilant. "Johnny Adair's return to prison does not end the ongoing loyalist feud," the party warned. Loyalist sources had earlier indicated the UDA would not enter mediation to end the feud until it had avenged the UVF killing of Mr Jackie Coulter and Mr Bobby Mahood.
Intense behind-the-scenes efforts are being made to convince the paramilitary organisations to begin talks. Mr Mandelson's decision to jail Adair followed a two-hour meeting with senior security advisers.
The Northern Secretary said: "My priority is public safety and I cannot give freedom to an individual intent on abusing it. I am satisfied that this particular individual has breached the terms of his licence."
Mr Mandelson had earlier discussed the prospects of mediation with Mr Gary McMichael, leader of the Ulster Democratic Party, the UDA's political wing. The Northern Ireland Office described the talks as "constructive". Mr McMichael appealed for an end to the feud which, he said, was "tearing loyalism apart".
However, he has little influence over the Shankill UDA.
Adair was freed from the Maze last year after serving five years of a 16-year sentence for directing terrorism. It is understood he was arrested last night on the Shankill Road when armed RUC officers surrounded his car, which was heading towards the Woodvale Road when it was stopped. He was then arrested, put into a police vehicle and driven off.
It is understood the British Army GOC, Sir Hew Pike, and RUC Deputy Chief Constable Colin Cramphorn, told Mr Mandelson that Adair presented a serious security risk and that the feud was likely to worsen.
The violence has spread outside Belfast, with UDA gun attacks on homes in Derry, Dervock and Portballintrae, Co Antrim, early yesterday. The PUP said the occupants were members.
The attacks indicate that elements of the UDA in other areas support the Shankill unit's militant position. Well-placed loyalist sources said the mood among the Shankill UDA was for revenge.
"The feeling is that to enter mediation without first having retaliated would be a sign of weakness. It would very much be giving the UVF the upper hand," said a source.
"The UDA may have shot up houses and a bar but it is the UVF that has actually killed people and there are UDA figures who believe they can't be let away with that."
Mr John White, of the UDP, said that until Monday's killings, there was support for mediation.
"That has now turned to scorn. I will continue to argue for dialogue and sooner or later it will happen, but I feel it won't until we have walked behind more coffins."