Cemetery killer Stone is freed on parole and backs Yes vote Blair spells out his terms on violence

Earlier Mr Blair, on a visit to Northern Ireland, set out the terms republicans and loyalists must meet before their political representatives can be part of a new administration in the province.

It was claimed that the release of Stone - a former UDA activist - was not designed to coincide with an Ulster Democratic Party rally held at the Ulster Hall in Belfast. The UDP is linked to the UDA/UFF.

Stone's prison commander, Sam McCrory, said the convicted killer's views were not necessarily the views of prisoners.

Earlier, McCrory apologised to all victims of violence. In an interview with BBC Radio Ulster he also declared: ''I just hope to look forward and not look back. We are of the view the war is over.''

Stone received a rousing reception from about 1000 loyalists as he walked down the aisle towards the platform in the hall, which was decked with UDA banners calling for a ''Yes'' in the referendum.

Senior loyalist sources suggested his appearance had been a hindrance rather than a help to the Yes campaign.

Shadow Northern Ireland Secretary Andrew MacKay criticised Stone's release from prison.

He said: ''Stone should not be allowed out of prison to attend the Yes rally any more than the IRA prisoners allowed out at the weekend to cavort at the Sinn Fein conference. Terrorist murderers should only be allowed out under supervision for the most urgent humanitarian reason and not to play politics. Two wrongs do not make a right.''

The Prime Minister said there would have to be a clear and unequivocal commitment from paramilitaries that violence and the so-called war was over for good. Both sides would also have to co-operate fully with the independent commission on disarmament. The Government's overall judgment, he insisted, would be based on both of these factors.

Mr Blair said he had decided ''they must be given legislative expression directly and plainly in the legislation to come before Parliament in the coming weeks and months.''

Although he insisted he was not making new preconditions or barriers, the Prime Minister's announcement was seen as a deliberate move to try to calm the anxieties of doubting Unionists agonising over the referendum on the peace agreement. It was also aimed at leaving them in no doubt the Government is serious about having all illegal weapons decommissioned within two years.

Ulster Unionist leader David Trimble was jeered by a section of the crowd as he left the grounds of the Royal Ulster Agricultural Society at Balmoral, south Belfast, last night, shortly after hearing the Prime Minister's assurances.

Mr Trimble - without the support of six of his MPs, more than half his parliamentary party - is under considerable pressure from hard-line rivals opposed to the deal who claim a majority of Protestants back them.

However, the Ulster Unionist leader said the Prime Minister's statement - which insisted there must be no fudge between democracy and terror - was clear, unequivocal and emphatic in addressing Unionists' concerns.

Mr Jeffrey Donaldson, one of the moderate UUP MPs currently opposed to the Agreement, said he appreciated the Prime Minister's efforts to address the concerns of many decent people in Northern Ireland. But he added: ''I want that assurance that the men of violence deliver real peace.''

Sinn Fein chair, Mr Mitchel McLaughlin, said his party was studying the text of the Prime Minister's speech. He warned: ''Nationalist rights are not concessions that are the gift of unionism or the British Government to give or to withhold.''

Last night Mr Blair had an emotional private meeting at Stormont Parliament Buildings with victims of Ulster's violence, meeting 20 people who had either suffered personally or lost loved ones during 30 years of the troubles.