The British government this morning insisted that agreement on North-South structures and the line-up of the new Northern Ireland Executive was imminent, despite a day of bitter and acrimonious exchanges between the Northern Ireland parties.
Despite the artificial deadline of Mr David Trimble's departure for the United States, and onwards to Oslo for the presentation of the Nobel peace award, sources made it clear that the British Prime Minister, Mr Tony Blair, was prepared to sustain his "telephone diplomacy" to secure the next phase of the peace process.
Arriving in St Malo in France last night for an Anglo-French summit, Mr Blair confessed his "disappointment" that the parties had failed to build upon the conclusions of his negotiations with them on the key issues over seven hours on Wednesday evening.
But sources close to Mr Blair said they thought the people of Northern Ireland would be "mystified" by any failure to agree the next steps in the peace process, which had seemed to resolve themselves into a question of whether there would be "six or seven" cross-Border implementation bodies.
The Taoiseach, Mr Bertie Ahern, cancelled plans to rejoin the all-party negotiations at Stormont yesterday, amid claims by the Deputy First Minister, Mr Seamus Mallon, that the Ulster Unionist Party had reneged on "a done deal" with Mr Blair about areas for future North-South co-operation and the remit for a proposed "eight or nine" cross-Border Implementation Bodies.
Meanwhile, Northern Ireland's First Minister designate, Mr Trimble, rejected as "pure fantasy" suggestions that he had been effectively over-ruled in the negotiations by his deputy party leader, Mr John Taylor.
Mr Trimble insisted that proposals on trade and EU programmes were the only issues agreed with Mr Blair and that, in line with the Belfast Agreement, only six cross-Border implementation bodies were to be identified.
Downing Street sources confirmed the Prime Minister had brokered a deal in which the "inward investment" issue was removed, leaving the cross-Border implementation body with a more vague remit concerning trade and business development.
Arriving at the Cairde Fail dinner in Dublin last night, Mr Ahern said it had been "a bad day." What was most disappointing "is that when we packed up last night at 3 a.m., things were almost there".
The hope had been that agreement could have been wrapped up by lunch time yesterday. "My biggest concern is one of timing. The plan was to conclude it today or tomorrow".
Earlier, remarks by Mr Taylor, in which he said there was "no way" the negotiations could be completed by the end of the day, aroused alarm in the SDLP. Shortly after Mr Taylor had spoken, Mr Seamus Mallon read a statement to reporters in sombre tones, setting out the terms of the agreement reached with Mr Blair the night before.
Mr Mallon said: "For my part I reached agreement with the Prime Minister on the following points: on North-South implementation bodies there will be a trade and business development body; a tourism body; a strategic transport body; an EU programmes body.
"There will be 10 Departments [in the Northern Ireland executive] with a stand-alone Department of Finance and Personnel."
In a clear challenge to the unionists, Mr Mallon added: "That is the deal that has been done and I stand by it.
"It is now for the other parties to confirm their participation in the agreement brokered by the Prime Minister."