Political parties in Ireland have cautiously welcomed the new proposals on the constitutional future of Northern Ireland.

Both the Ulster Unionist Party and SDLP, associated with the Protestant and Catholic communities respectively, have said they are ready to use the new document as a basis for further negotiations

Sinn Fein, the political wing of the IRA, did not give an immediate response, however.

The proposals are thought to include devolution of power to a Northern Ireland Assembly and the establishment of a Council of the British Isles.

Lord Alderdice, leader of the non-sectarian Alliance Party, hailed the document , entitled Heads of Agreement, as an "extremely important step forward.

Lord Alderdice: "extremely important" document

"In looking through it, it seems obvious that there will be some gain and some pain. We are very encouraged by it. I think this is an encouraging day and it may well rank along with those like the day the Downing Street Declaration was signed," he said.

The SDLP leader, John Hume, said it was addressing the heart of the problem. "I welcome the statement because I think it is addressing the central issues and the central relationships that go to the heart of our problems," he said.

John Hume: "very historic"

If these issues were agreed it would be "very, very historic", he said.

The leader of the Ulster Unionists, David Trimble said the paper effectively replaced the Framework Document and that was highly significant.

"It's clear to us that the territorial claim will end as a result of this process. The Irish Government has acknowledged the reality that we are looking at a United Kingdom outcome," he said.

David Trimble: "highly significant"

Mr Trimble said he warmly welcomed the idea of a Council of the Isles bringing together all the devolved assembles of the UK.

The tabling of the joint paper has been welcomed by the main parliamentary opposition party in Dublin too.

The Fine Gael leader, John Bruton, also the Irish Prime Minister until last June, said: "This type of joint approach is the right way forward and has my full support."

The Northern Ireland Secretary, Mo Mowlam, said the document, which will by debated by the parties at Stormont on Tuesday, was the outline of an agreement.

"It's our best judgment of what might be the main elements of an overall settlement. I believe it to be fair and balanced," she said.

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