Blair meets Ahern in renewed efforts to put together agreement on devolution

Tony Blair spent yesterday in Northern Ireland meeting republicans, Unionists and others as part of an effort to stitch together a new Anglo-Irish political deal.

Sinn Fein representatives described their meeting with the Prime Minister and his Irish counterpart, Bertie Ahern, as disappointing, saying they were at the beginning of a process in which much remained to be achieved. But government sources said the meetings had been useful and businesslike, making unspectacular but significant progress.

The talks, at Hillsborough Castle, near Belfast, were held under tighter security than usual, with many police in the castle grounds and roadblocks mounted near by.

At a news conference last night, Mr Blair announced a new initiative with funding aimed at community development and building local leadership in those Protestant areas worst affected by the feuding among loyalist paramilitary groups.

The two prime ministers are to return to Northern Ireland early next month, by which time they hope to have worked out the basis of a new deal returning devolution to Northern Ireland.

The Belfast Assembly was suspended late last year after revelations that the IRA had committed a number of misdemeanours including spying at Stormont.

Mr Blair subsequently pressed republicans for "acts of completion" that would reassure Unionists and provide a basis for devolution.

Sinn Fein has since emitted encouraging signals aimed at confirming that a deal is possible. The two governments are reported to be close to putting outline proposals together, but much work remains to be done.

Sinn Fein and the IRA appear to be contemplating significant movement, but are almost certain to expect major concessions in return. Republicans are pressing for government action on issues such as demilitarisation and policing.

The general assumption is that the real business between republicans and London will take place not at formal set-piece occasions such as yesterday's talks, but in more secret negotiations.

* Up to 650 civilians will be recruited to free up more officers for the police service in Northern Ireland, it was announced yesterday.

The force has suffered from a serious lack of resources since hundreds of officers retired after new policing arrangements were introduced. About 353 new officers have joined since April last year, but the force remains under pressure.