North crisis as SF spy killed in hideout

THE mutilated body of a former top-ranking Sinn Féin official exposed as a British spy was found at his Donegal hideout last night following an execution-style murder.

The killing of Denis Donaldson provoked widespread revulsion and threatened to derail tomorrow's attempt by Dublin and London to revive power-sharing in the North.

Mr Donaldson confessed in December to being a Special Branch agent for more than 20 years while working at the heart of Sinn Féin's strategic operations.

His body - the right forearm almost severed - was found by a neighbour at 5pm with a gunshot wound to the head.

Justice Minister Michael McDowell ordered parts of the Border to be sealed as a massive garda investigation swung into action.

Mr McDowell said: "The preliminary indications are that the body had been lying on the floor with a gun wound to the head for some considerable time.

"The evidence tends to suggest there may have been a break-in at the premises."

The IRA moved quickly to deny any involvement in the slaying and Sinn Féin president Gerry Adams said the murder "belonged to another era".

Mr Donaldson's remote cottage near Glenties lacked running water and electricity and became his home after he was banished from republican circles.

Sinn Féin leaders publicly insisted his life was not in danger, but individual republicans had vowed the former head of the party's office in Stormont would never be allowed to return to live in Belfast.

Taoiseach Bertie Ahern and British Prime Minister Tony Blair are to meet in Armagh tomorrow to launch a last-ditch effort to restore the power-sharing assembly as planned.

Mr McDowell indicated the murder may have been a bid to disrupt peace moves.

"You have to ask yourself to whose benefit would such an act be and clearly it would be an action that could not benefit bringing about further progress in the peace process at this stage."

DUP leader Ian Paisley said the murder had serious political implications as "eyes will be turned towards IRA/Sinn Féin", as he claimed republicans had not given up violence and so unionists could not share power with Sinn Féin.

Mr Donaldson was a convicted IRA bomber who spent time in prison with Mr Adams and was head of Sinn Féin's international department.

The IRA said it had "no involvement whatsoever" in the death.

Mr Ahern insisted those responsible would be brought to justice.

British Northern Secretary Peter Hain said: "I am completely appalled by this barbaric act."

Mr Donaldson's wife was being sought by gardaí last night. It is not yet known if she was at the house at the time of the killing.