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``The parties have decided to explore a political solution founded on internal self-determination based on a federal structure within a united Sri Lanka,'' the statement said. It also said that political steps must be supported by measures to ensure continuation of the existing ceasefire and ``that new concrete measures will be taken to facilitate further de-escalation.'' Norway's Deputy Foreign Minister, Vidar Helgesen, said the three days of talks were conducted in a ``frank, open and constructive manner.'' The agreement was reached a week after the LTTE leader, Vellupillai Prabakaran, said for the first time that the Tigers were in favour of a solution that offered ``substantial regional autonomy.'' The statement said that the rebels would let competing political parties stay in their regions as long as they were unarmed, and that the activities of their courts and police would not extend to Colombo-held areas. The LTTE's chief negotiator, Anton Balasingham, said ``both parties made an unprecedented historic decision... Our struggle was based on the concept of self-determination.'' The peace process would move forward, step-by-step. ``There is no need to resort to violence.'' And the Government negotiator, Gamini Peiris, said the commitment to peace was in place. ``There is not going to be a war. We are certain of that,'' he said. ``The people of the country are yearning for peace.'' Ways of incorporating the Tigers into the Government will be examined in the next round of talks in Japan. Mr. Balasingham said a Muslim delegation would be included in the next round of talks. 'Major step' V. S. Sambandan reports from Colombo: Oslo's Special Envoy to Sri Lanka's peace process, Erik Solheim, termed today's agreement as a ``major step'' but expressed caution that a "long and bumpy road'' was ahead before a final solution could be reached. ``They have decided what sort of house they want to build. They want to build a house with a federal structure within a united Sri Lanka. The decision to raise this house takes a long time,'' Mr. Solheim told The Hindu over phone from Oslo. The Tigers had made it "very clear that they will settle for a federal option based on self-determination but within a united Sri Lanka.'' While the two sides were "definitely closer'' to a solution than they were at the start of the talks, it would be "absolutely illusory'' to expect an early solution, he said.
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