Fruit of the Loom group's chairman and chief executive, Mr Bill Farley, has given a firm assurance to the Tanaiste, Ms Harney, that there is no threat to the 3,500 jobs in Donegal and Derry.

During a meeting at the group's headquarters in Chicago, which was also attended by IDA Ireland's managing director, Mr Kieran McGowan, Mr Farley said the group was committed to maintaining the 3,500 jobs at its Irish operations, and gave very strong commitments until at least the end of 1998.

He stressed that the group was continuing to trade very strongly and that there was no short-term threat to Fruit of the Loom workers in Ireland. Meanwhile, negotiations are continuing between Fruit of the Loom's three Irish directors and the company on the terms for an acceptable package under which they would leave the group's Irish operations.

The agreement is being finalised by accountants and solicitors acting for managing director, Mr Willie McCarter, his brother John, who is sales director and the finance director, Mr Seamus McEleney. Sources close to the negotiations last night said it was still unclear whether the agreements could be formally accepted ahead of tomorrow's scheduled High Court hearing for an application to block the three redundancies. There was still some hope, however, that the legal process will have been completed by then, ruling out a High Court appearance.

There have been increasingly positive signs this week that the dispute between the US multinational and three of its senior Irish executives would be amicably resolved.

Under the redundancy package, the three men would agree to leave the company. Fruit of the Loom has previously stated that their positions would not be filled and that the redundancies were part of a European reorganisation.