The threat of further bombings by the Continuity Army Council is preventing a greater de-escalation of the British military presence in the North, the Northern Secretary, Dr Mo Mowlam, said.
As long as the CAC had Semtex and "other bits", there would have to be a limit to the running down of the military presence which has been taking place as a result of the IRA ceasefire. "But while we have a threat from the CAC we can't do too much on that front."
The Northern Secretary said they would do all they could to ensure that the CAC threat "does not destabilise things". Concerning the IRA ceasefire, she has been told by her security advisers that it is "holding better" than the first one in 1994.
Dr Mowlam, who is starting a week-long tour of the US to talk about the present situation in Northern Ireland, said reports of a split in Sinn Fein/IRA over the peace talks had been "overplayed" in some elements of the media.
She had been told that those who had left Sinn Fein/IRA were not joining any other organisation.
She denied that the reported split would give additional leverage to Sinn Fein in the peace talks. Until she got evidence of "substantial facts" on the extent of a split, she could not see any leverage resulting from the present situation in which the Mitchell Principles were still the basis for the talks.
The Northern Secretary, who was speaking at a media breakfast in the British embassy, painted an optimistic picture of the situation in Northern Ireland and listed areas where progress was being made in remedying grievances on the part of the nationalist population. But she added "there is still a long way to go".
She said there would be an announcement soon on Bloody Sunday which should prove helpful and work was also going ahead on the idea of a memorial to all the victims of the Troubles.
Asked if the election of Mrs Mary McAleese as the first President of Ireland to come from Northern Ireland could have some impact at a future date on the peace talks, Dr Mowlam said it was a very interesting question, but "it is too early to tell". She had been at the inauguration and the new President had made "a very good speech".
Concerning the peace talks themselves, the British government was still aiming at a deadline of next May. "We're serious about May, very serious."
She hoped a consensus agreement from the parties themselves would emerge from the talks which would be put to the people in both parts of Ireland, but the British government was not trying "to impose" an agreement.
If a consensus did not emerge, then the government would have to "review the options".