Last-ditch efforts to prevent suspension of the two-month old political institutions in Northern Ireland will continue this morning, as the peace process faces its most serious crisis yet over weapons decommissioning.
The Taoiseach and the British Prime Minister will meet in south-west England, where Mr Blair is on a tour, this afternoon for a crucial discussion of the issues. They will be joined by the Minister for Foreign Affairs, Mr Cowen, and the Northern Secretary, Mr Peter Mandelson.
Last night, the Government was still not conceding its efforts to find a resolution would fail.
However, barring a last-minute development, Mr Mandelson is expected to travel to the House of Commons immediately after this afternoon's meeting to announce the suspension of the institutions and the start of a "review" of the Belfast Agreement.
It was not clear last night who would carry out such a review or how long it would take. With just three months to go to the deadline for weapons decommissioning set in the Belfast Agreement, the Government is anxious to ensure any review ends well before that date.
The two governments and the pro-agreement political parties are seriously concerned that suspension carries serious risks for the process. The Government believes it will be very difficult to get the institutions back on track once they have been suspended.
Senior Sinn Fein figures were believed to be consulting within the republican movement late last night to discuss the situation, although there was little optimism about a breakthrough. It was clear last night that only significant movement from the IRA overnight would prevent the suspension of the institutions.
Government sources said that what was needed was an unambiguous form of words from the IRA that would allow the chairman of the decommissioning body, Gen John de Chastelain, to announce he was convinced the IRA was committed to fulfilling its decommissioning obligations under the Belfast Agreement.
Even if such a form of words was forthcoming, it is not known whether this would be enough to persuade the Ulster Unionists to agree to continue operating the institutions for a further period. A post-dated letter of resignation from Mr David Trimble, given to his party officers last November as part of his strategy to persuade his party to agree to enter government with Sinn Fein without decommissioning, is due to take effect tomorrow unless the institutions are suspended.
The form of words on offer from the IRA is believed to contain no commitment to decommissioning. There is speculation that it is similar to the wording of a statement issued by it on Tuesday saying it is totally committed to the peace process, wants "a permanent peace", that its ceasefire is entering its fifth year, that its guns are silent and that "there is no threat to the peace process from the IRA".
The Sinn Fein President, Mr Gerry Adams, said yesterday he believed decommissioning could take place, but it had to be voluntary and the time-scale should be left to the decommissioning body and armed groups. He was speaking after a meeting between a delegation of senior figures from the republican movement and the Taoiseach, Minister for Foreign Affairs and Minister for Justice.
Contacts between the two governments, Sinn Fein, the UUP and the other parties were continuing last night and will resume again this morning, but there appears little hope of an alternative to suspension.
Once a suspension is announced, legislation would be introduced in the House of Commons to give effect to the suspension of the Assembly, Executive, British/Irish Council and North/South Ministerial Council. Government sources say the North/South implementation bodies will remain in operation for three to four months as they have contractual obligations to staff and need time to facilitate "an orderly transfer of powers" to Government departments.