English Rugby Football Union (RFU) chiefs brokered a peace deal with their International Rugby Board (IRB) accusers in Dublin yesterday which protects England's Test future.
England faced the threat of being thrown out of world rugby by the IRB, who called the RFU to account for the Premiership clubs' action in taking the board to the European commission.
The IRB wanted to know why England cannot control the action of the clubs and threatened suspension from the board. That would have meant the cancellation of future Test matches and threatened England participation in the World Cup.
But, after a six-hour meeting, England escaped without any form of punishment.
A five-man delegation from Twickenham met the IRB executive committee and Vernon Pugh, IRB chairman, said talks had been constructive.
Australian Rugby Union chief Dick McGruther, also chairman of the IRB game regulations committee, said: "Penalties against England were not even discussed. But we do have evidence of the fact that some English players were still eligible for their clubs and still could not make the tour to Australia, New Zealand and South Africa.
"One wonders if the first and last call of national unions on players is being observed - but the tour was never in doubt."
The IRB gave grudging approval to the recent deal between the RFU and the Premiership clubs, but insisted that the `Mayfair Agreement' needed tinkering with.
John Jeavons-Fellows, one of England's IRB delegates, said: "There are no winners or losers. We had a sensible discussion in the light of Graham Smith's settlement with the clubs last week."
Smith, one of England's representatives in Dublin, spearheaded the presentation of the Mayfair Agreement that brought a truce in the long-running war between Twickenham and the clubs.
Peter Brook, RFU president, said: "We had a full and frank meeting. It was a happy day. There was no mention of expelling us by the IRB."
The application by the English first division rugby clubs' organisation (EFDR)to the European Commission was discussed and the RFU vowed that, like the IRB, they would make a strong defence against the complaint. Pugh said that the IRB were "broadly satisfied" that the current draft of the agreement between the RFU and clubs was in conformity with the IRB regulations.
"Some aspects did raise concerns that need to be further addressed," said Pugh, "but the issues all appear to be capable of resolution and both sides are working to achieve the same objective. The opportunity will be taken for consideration of some amendment of the documents."
Smith said the RFU would "ensure that the agreement is in full conformity with the IRB's regulatory provision" and added: "We will also consider positively some of the other matters raised."
As a result of yesterday's talks, the IRB and RFU will liaise further with a view to the RFU achieving a final form of the Mayfair agreement within the near future. The document will be taken back to club representatives for further discussions.
Two of Europe's most gifted playmakers, Thomas Castaignede and Gregor Townsend, may be on their way to new clubs in what promises to be a summer of highprofile transfer activity.
The Frenchman, in London yesterday to receive an £8,000 award as Heineken European Player of the Year, may join one of three Premiership clubs eager to sign him and the Scot is likely to make the reverse journey across the channel to join Brive whose number 10, Alain Penaud, is replacing the retiring Michael Lynagh at Saracens.
Castaignede has admitted that three English clubs - Bath are understood to be among them - have made approaches. Townsend, who is refusing to sign a new contract with Northampton, has been targeted by last year's European champions Brive, who are ambitious to regain the crown taken by Bath in January.
The 23-year-old Castaignede said: "Since the Five Nations, three clubs have approached me and I have to make up my mind whether to come here or stay at home. I may come here because I like the way rugby is played in this country, but I have to think about my World Cup ambitions, and if they are best served by playing in France then I will remain there."
The 25-year-old Townsend feels he has been marking time at Northampton since he helped the Lions win a Test series in South Africa last summer. Newcastle are also understood to be interested in the Scot, although Rob Andrew insists he will continue at number 10 next season.
The far higher salaries paid by leading English clubs could price the France fly-half's current employer, Castres, out of the market. Castaignede, who has 18 caps, would expect to earn around £200,000 a season, almost three times the salary Castres have been paying since he made his international debut in 1995.
Tim Stimpson, the England and Lions full back put on the transferlist by Newcastle last October, has agreed a three-year deal with Leicester.