Reynolds offer to Sinn Fein

Fein -- the IRA's political wing -- to take part in a Forum for Peace

and Reconciliation which he hopes to set up before the end of next

month.

This initiation of Sinn Fein into the political process will begin

ahead of Downing Street's three-month moratorium on any republican

involvement in inter-party talks.

However, Mr Reynolds told a news conference here last night that,

during a telephone conversation with Mr John Major, he had won the

British Prime Minister's broad approval for this approach.

Mr Reynolds said Mr Major had gone along with his assessment that IRA

violence is over and that a new era of political dialogue has opened in

Ireland.

As part of a diplomatic offensive to win international support for the

reconstruction of the Northern Ireland economy, Mr Dick Spring, the

Irish deputy Prime Minister will travel this evening to Washington for a

meeting with President Bill Clinton.

American officials are reported to be working on an economic rescue

package -- reckoned to be worth between #6.6m and #133m -- for Northern

Ireland.

Mr Spring also plans to travel to Bonn, possibly early next week, for

talks with Chancellor Helmut Kohl, who is chairman of the Council of the

European Union. These talks will explore the possibility of additional

EU funding for Northern Ireland and cross-border projects promoting a

single market on the island of Ireland.

Also next week, Mr Spring will meet Sir Patrick Mayhew, the Secretary

of State for Northern Ireland, to take stock of developments.

News of the ceasefire -- released in Dublin shortly after 11am -- was

welcomed rapturously by all sections of opinion in the republic.

The Dail, the Irish Parliament, postponed until today a special debate

on allegations of abuses and fraud in the beef sector to devote itself

to congratulatory statements on what is perceived to be a historic

breakthrough.

Opposition leaders, who had hoped to castigate Mr Reynolds, warmly

praised him as ''the peace premier'' and pledged their support for the

Forum on Peace and Reconciliation.

Both Mr Reynolds and Mr Spring insisted that no hidden deals had been

done with the IRA and they urged Ulster Unionists and loyalist

paramilitaries to join them in the creation of an agreed Ireland free

from fear of the bullet and the bomb.

Mr Reynolds insisted the ceasefire would be total -- despite the IRA

failure to describe the move as permanent.

He said: ''I have already spoken to John Major for a few moments. I

think I will be in touch with him again and I will certainly do what I

can to allay any fears he may have that it means anything other than

that the armed conflict is over.

''I think that is what he wants to be assured of, so I will use my

time and efforts to try and persuade him.''

The issue should not become a serious stumbling block. ''This is a

momentous decision all the Irish people in Ireland and throughout the

world have been waiting for.''

Mr Reynolds added: ''I don't mind what words are used as long as the

effect is that this is the end of 25 years of conflict.''

He added: ''My clear understanding and objective evaluation would have

to conclude in the context of the overall statement that it means

exactly what I believe it means, and that is that the armed conflict is

over.

''I have spoken on many occasions about a complete cessation of

violence, a complete end to military operations, so whatever way you

want to describe it, what it means is what is important.

''Any evaluation of the statement clearly shows that it means the

conflict is over.''