The British Prime Minister, Mr Tony Blair, is to meet SDLP and Ulster Unionist leaders at Downing Street today amid mounting concern that the deadlock on policing could force the British and Irish governments to put the Belfast Agreement into review.
However, there was still hope of salvaging the peace agreement in the next few days, according to the Taoiseach, speaking in the Dail yesterday. He underlined the urgency of the situation, saying there was little more than a week left to reach agreement.
However, he pointed out that "more than 90 per cent" of a deal was in place.
Mr Ahern said legislation would be necessary to cater for nationalist concerns over the powers of the planned new policing boards.
However, this was not necessary right now and a deal could be struck before such legislation was introduced.
Mr Blair is to hold separate talks at Downing Street with the SDLP's Mr John Hume and Mr Seamus Mallon, and with Ulster Unionist leader Mr David Trimble as politicians warn that time is running out for a deal on policing, demilitarisation and paramilitary arms disposal.
Sinn Fein is continuing to insist that what is on offer from the British government on policing fails to meet its demands. The SDLP is also refusing to endorse the police reform package.
Friday week, when a North-South Ministerial Council summit is scheduled to be held, is being seen as a potential deadline for agreement.
In the absence of a deal, Mr Trimble is virtually certain to veto the attendance of Sinn Fein ministers at the summit.
The mood in political circles last night was downbeat, with no apparent openings for a compromise on policing.
With Westminster and local elections fast approaching, the British and Irish governments are understood to be planning to put the agreement into review if the logjam cannot be broken.
The political pressure was intensified yesterday when it was learnt that the RUC Chief Constable, Sir Ronnie Flanagan, is to place advertisements this week for 240 recruits to the new Police Service of Northern Ireland. Under the Police Act, recruitment must be on a 50:50 Catholic-Protestant basis.
The Sinn Fein president, Mr Gerry Adams, urged nationalists to ignore the advertisements. "No democrat, never mind a republican or a nationalist, could advise anyone to join the RUC. On the contrary, Sinn Fein will be advising people not to join or support this recruitment drive to what is an old force."
The North's Deputy First Minister, Mr Mallon, also appeared to take the view that the advertisements did not relate to the new force. "There is no new policing board in place yet. There are none of the new arrangements for the new police service in place yet. Let's take it one step at a time."
Mr Ahern told the Dail he believed agreement was still possible on the outstanding issues in relation to policing, which Mr Austin Currie suggested were "limited to the four main headings of accountability, operational matters, inquiries and symbols".
"My view is that an understanding can be reached on these issues," Mr Ahern said.
"Ultimately, they will require legislation, but they do not need legislation now. An understanding could be reached now that would allow movement to take place. Ultimately, legislation will be required."
He said the two governments were working to get all the parties to agree on the outstanding issues, saying the recent talks had concentrated almost entirely on policing.