This stalemate hindered progress on devolution. The Secretary of State, Dr Mo Mowlam, hoped an inclusive Executive exercising devolved power would be in place by the 10 March 1999, but that date could not be met. In an effort to break the impasse the two governments had discussions with the political parties at Hillsborough Castle and issued a Declaration (the Hillsborough Declaration) on 1 April 1999. The Declaration stated that there was "agreement among all parties that decommissioning is not a precondition but is an obligation deriving from their commitment to the Agreement, and that it should take place within the timescale envisaged in the Agreement, and through the efforts of the Independent International Commission on Decommissioning."

It proposed that on a date to be established, nominations for the Executive would be made. A month after the nominations, the Independent Commission would suggest a date on which a collective act of reconciliation would take place and some paramilitary weapons would be put beyond use on a voluntary basis. The act of reconciliation in memory of all victims of violence would involve representatives of all the political parties, the two governments and all the churches.