As the midnight deadline for agreement passed at Stormont the two governments were embarking on the final round of negotiations aimed at pulling the Belfast Agreement back from the brink of collapse.
Mr Tony Blair and Mr Bertie Ahern were said to be impressed with what the Sinn Fein president Mr Gerry Adams indicated was a significant "shift" in the republican movement's position on IRA decommissioning.
Early this morning all the parties - but the two governments and the Ulster Unionist Party and Sinn Fein in particular - were awaiting imminent publication of Gen John de Chastelain's delayed report on decommissioning.
The report was to be presented to Mr Ahern and Mr Blair, and thereafter it was expected that it would be given to the UUP and Sinn Fein. It was hoped that the document might provide the necessary wording to convince the UUP leader Mr David Trimble that IRA decommissioning would begin before the end of the year.
Sinn Fein refused to confirm speculation that the "shift" in its ?????????ein's position amounted to a pledge that IRA disarmament would begin in three to six months time - after the speedy formation of an executive with two Sinn Fein ministers.
It is understood that Mr Trimble was under pressure from Mr Blair to acknowledge that what Sinn Fein was offering was tantamount to an "historic" shift in the IRA's position on disarmament.
Mr Trimble acknowledged that he was aware of reports of some form of IRA commitment to begin disarmament before the end of the year, possibly by October or December, but added that his information was coming from the press rather than from republican or British or Irish sources.
Mr Trimble appeared to be complaining that he had nothing on paper, although again it was suggested by informed sources that Mr Blair and Mr Ahern had been briefing the UUP about what was on offer. Sinn Fein sources claimed that Mr Trimble should not be in any doubt about what was on the table.
It was also reported that Mr Adams offered to address the UUP Assembly parliamentary party to try to persuade them of republican bona fides. Initial UUP reaction was dismissive of this proposal.
The question for Mr Trimble and the two governments was that while a deal was on offer could the UUP leader sell it to his party? - particularly with some unionists demanding at the very least the executive being established simultaneously with the beginning of disarmament.
It could not be confirmed but there was speculation early today that the UUP was prepared to form the executive on the basis that decommissioning would begin a fortnight later.
Mr Adams insisted that there was no chance of prior disarmament. "It is clear to everyone that prior decommissioning is not achievable. Everyone knows that it is not in the terms of the Good Friday Agreement. It is not within the gift of Sinn Fein to deliver," he said. But asked had Sinn Fein changed its position during yesterday's negotiations, he replied, "Yes".
Ahead of the publication of Gen de Chastelain's report, Mr Trimble said he had not received any formal commitment from Sinn Fein about decommissioning, although he had read press reports.
Talks were continuing this morning to try to bridge the gap between the two parties.
Earlier, The UUP parliamentary team issued a statement supporting Mr Trimble and his negotiating team "in their pursuit of the requirement that Sinn Fein/IRA move to decommission their armoury".
"Unadulterated democratic practice demands that anyone in executive government should not have armed support against the lawful security services of the state," the statement added.
The Sinn Fein president, Mr Gerry Adams, said the question was whether the imperative of the majority of the people who supported the Belfast Agreement and the commitment of the British and Irish governments to the agreement were stronger than those who wanted to destroy the agreement.
"It's now the day to do the deal, now the day to make the decision and we are here to make this D-Day for the people of this island," added Mr Adams.
SDLP Assembly woman Ms Brid Rodgers called on the UUP and Sinn Fein to make common purpose. "The reality is all of the parties in the agreement, including the two governments, will have to create certainty. "There are ups and downs but I just have to be hopeful because the alternative is too awful to contemplate," she added.
The DUP, which was keeping a watching brief on developments inside Castle Buildings, said it was present to "act as a brake on those within the UUP who may be prepared to give in to government attempts to accept something less than a full surrender of terrorist weapons".
DUP Assembly member Mr Sammy Wilson said: "Only democratic parties are fit to be in the government of Northern Ireland and any party which has a private army to back up its arguments has no place in government.
"We have repeated that simple message to the Prime Minister today and our role will be to remind him that he made a similar pledge when selling the agreement to the people of Northern Ireland a year ago.
"Castle Buildings is synonymous with the discredited and despicable Belfast Agreement. Our presence at this week's talks is to ensure that the errors of last year are not compounded by another sell-out from a weak Ulster Unionist leader."
The Alliance leader, Mr Sean Neeson, said that "only by the pro-agreement parties and the two governments acting collectively can we ensure that commitments given in any agreement are honoured".
