The Taoiseach believes he has reached "an understanding" with the Ulster Unionist Party leader about the parameters of the talks on constitutional change in the coming substantive negotiations on the future of Northern Ireland.
Mr Ahern and Mr David Trimble have agreed that Articles 2 and 3 will be on the table alongside changes in the Government of Ireland Act, 1920, in a bid to reach a balanced accommodation for an overall settlement in the all-party talks, according to Government sources.
The sources also say that both leaders accept that North-South bodies will be up for negotiation. While Mr Trimble refers to them as "institutional" structures, the Government will be insisting that they have executive powers.
The Government is placing a fresh emphasis on the East-West relationship in the third strand of the talks in a new recognition of Mr Trimble's sensitivities.
Meanwhile, the apparent breakthrough in the Government's relationship with Mr Trimble was copperfastened by "a very useful and fruitful" meeting between the Taoiseach and the British Prime Minister on the margins of the EU jobs summit yesterday.
Mr Ahern announced that the Government plans to rush an amendment to the Transfer of Prisoners Act, 1995, through the Dail and Seanad before Christmas to facilitate the early repatriation of Irish prisoners serving life sentences in British jails.
The heads of the Transfer of Prisoners (Amendment) Bill, 1997, were approved by the Cabinet last Tuesday. It is designed to reassure the British government that prisoners serving a 35-year life sentence in British jails will be compelled to serve out their full term, if repatriated to Ireland. A life sentence in Ireland amounts to 20 years.
With the issue of prisoners being seen as the key confidence building measure for republicans and loyalists, Government sources signalled that the transfer of three prisoners was imminent. A further six are due to be repatriated before Christmas.
Mr Ahern briefed Mr Blair yesterday on his discussions with Mr Trimble on Thursday and his recent meeting with the Sinn Fein president, Mr Gerry Adams. The two leaders also assessed the implications of resignations from Sinn Fein and the IRA.
Referring to recent developments in the republican movement, Mr Ahern said there was concern about them, "but we are heartened by the fact that, as we understand it, the leaders and the main players are very much still forcing the peace issue. It is important to keep the focus on that."
Mr Blair's spokesman said they agreed that the Government's meeting with Mr Trimble had been "a good one" and hoped that the link would be sustained.
The Taoiseach said that he and Mr Blair went through their work programmes "and looked again at what we can achieve this side of Christmas".
The Minister for Foreign Affairs, Mr Andrews, raised the Government's report on Bloody Sunday, which is still being assessed by the British.
Mr Andrews made representations to the German Foreign Minister, Mr Klaus Kinkel, during the summit to try to get the German government to drop its case for the extradition of Ms Roisin McAliskey.
It emerged yesterday that Mr Blair is due to meet Mr Adams next Friday. Mr Ahern will attend the all-party talks at Stormont in 2 1/2 weeks.
