MEMBERS of the British Cabinet's Northern Ireland Committee have reached agreement on the form of elective process to lead to all party negotiations beginning on June 10th.
It is understood that a "broad package" of proposals will provide for an elected forum in the North operating in parallel with a process of negotiations.
Downing Street sources confirmed that ministers, after more than two hours of discussions last night, had agreed a proposal which will be put to a full cabinet meeting tomorrow morning. Subject to cabinet approval, the Secretary of State, Sir Patrick Mayhew, is expected to announce the decision to the House of Commons tomorrow afternoon.
The terms of the British decision on the form of election and role of an elected body will be conveyed to the Tanaiste, Mr Spring, when he meets Sir Patrick in Belfast this afternoon.
The Taoiseach, Mr Bruton, and the British Prime Minister, Mr John Major, are also expected to have discussions before Sir Patrick's Commons statement.
But there were clear signs of anxiety in Dublin last night about how London would "call" the decision between the competing claims and proposals of unionist and nationalist parties in the North.
It emerged that there has as yet been no serious negotiation between London and Dublin on the terms of a referendum, presumed generally to be an integral part of the overall package.
It was also being made clear that Irish Government backing for an elective process is contingent upon assurances that the process of all party negotiations could not be stalled by continuing dispute about the decommissioning of paramilitary weapons.
Downing Street sources last night refused to pre-empt tomorrow's cabinet discussion, or to comment on yesterday's Irish Times report that the government was considering a "hybrid" electoral system, combining aspects of a constituency based election and a party list system.
But one Whitehall source said he believed all parties would find "something to their liking" in the overall package.
There was speculation at Westminster last night that the final system could not strictly accord with an Ulster Unionist Party proposal originally advanced in February 1995. One report circulating suggested the proposed method would provide for direct elections of 90 members to an elected forum, with a "top up" system providing a further 20 places.
However, British government sources played down suggestions that the electoral system would enable voters to cast two votes one for an individual candidate and a second for their preferred party.
With tension rising, Mr Seamus Mallon denounced suggestions for a "hybrid" system. The SDLP deputy leader said such a procedure would be a nonsense.
"I think it has all the ingredients of being a type of arrangement that possibly could grind to a halt very, very quickly," he said after meeting the North's political development minister, Mr Michael Ancram, at Stormont.
While stopping short of threatening a boycott of elections, Mr Mallon said the SDLP would "make our judgment when we see what the British government have decided."
However, the possibility of a nationalist boycott is rated seriously by senior figures in Dublin. One source told The Irish Times last night that nationalists could decide to participate only in all party negotiations, while declining to sit in any forum operating in parallel to the negotiating process.
And he said they could "boycott the whole shebang" if London proposed any direct relationship between the negotiations and an elected forum.
Senior Conservative sources at Westminster last night expressed confidence that none of the parties would, in the end, be able to justify a boycott of the electoral process.
Sources in Dublin re-emphasised the Government's support for the list system. There is fear a "hybrid" would lead to a majoritarian body which would please no one.
At today's meeting with Mr Spring, Sir Patrick is expected to say whether it is proposed to hold, referendums, North and South, on the principles of non violence and a negotiated settlement. Dublin sources have indicated that elections and referendums must be treated as separate items.