The Basque separatist group, ETA, has said its six-week old ceasefire will become permanent if progress is made in the peace process.

The statement published in the newspaper, Euskadi Informacion followed Tuesday's announcement by the Spanish government authorising official contacts with the armed group.

ETA has waged a bloody campaign for independence in the northern Basque region for thirty years.

Yesterday its political wing, Herri Batasuna urged the government to start direct talks with ETA on all issues.

The moderate Basque Nationalist Party, which won October's elections to the Basque parliament, has also welcomed the move but the opposition Socialists said the government had acted rashly.