The Sinn Fein president, Mr Gerry Adams, has said he believes the UDA "actively collaborated" with the LVF in a number of recent killings of Catholics in the North, and that it was operating a "no claim, no blame" policy.
Reacting to the murder of a 52-year-old taxi driver, Mr Larry Brennan, on Belfast's Ormeau Road on Monday night, Mr Adams said the UDA was "content that the LVF should claim some of the operations for which they are responsible". He said innocent Catholics were being "picked off the streets with impunity", and that loyalists were trying to prevent "the fundamental changes that are necessary" from taking place.
Mr Gary McMichael of the Ulster Democratic Party, which is linked to the UDA, said he had "no reason to believe" that the UDA was involved, and described it as "another needless death". However it is now generally believed that the UDA/UFF did play a role in the killing of Mr Brennan. A leading loyalist, Mr Jim Guiney, who was allegedly linked to the UDA, was shot dead hours earlier by the INLA.
The leader of the Ulster Unionist Party, Mr David Trimble, appealed for calm, and said he would wait to hear a report from the Chief Constable of the RUC before making any comment on who was responsible for Mr Brennan's murder.
As political talks took place at Stormont yesterday, some 150 community representatives from nationalist areas protested over recent killings by loyalists. A spokeswoman, Ms Eileen Howell, said the parties in the talks had to "set themselves to the task of ending the horrendous murder campaign against the nationalist people". She said they condemned all murders, but that they did not believe the killings were "a reaction to a particular event or set of circumstances".
The British Prime Minister, Mr Tony Blair, supported the family of Mr Brennan in calling for no retaliation for his killing, and said he hoped their appeal would have some influence on the community.
The leader of the SDLP, Mr John Hume, said he believed the vast majority of the people of Northern Ireland would "totally and utterly condemn the people who are carrying out these horrible murders".
"It is becoming very clear to me that the reason they are doing it is in their self interest. They want to keep the troubles going and wreck the talks process. They are not going to succeed," Mr Hume added.
The Northern Secretary, Dr Mo Mowlam, condemned the murder of Mr Brennan as "an inexcusable and unjustifiable act". She added: "We are now facing a serious situation. But those responsible for these acts cannot be allowed to set the agenda."