The initial UDA statement released last week accused republicans of racism, ignorance and bigotry and said the paramilitary group - criticised last week by the Independent Monitoring Commission over its lack of progress on decommissioning - remains ready to face the "republican threat."

But David Malcolm, the Ulster Political Research Group's (UPRG) regional secretary in Derry and North Antrim, said the statement reaffirmed the UDA's commitment to peace and described it as " a positive development within loyalism."

He said the UDA statement was not designed to intimidate or threaten.

"The statement clearly says that the battlefield has changed and it also states that the forthcoming battle is one of debate and challenge - and not one of violence.

" Loyalism recognises the right of nationalist/republican citizens to determine their own ideology, aspirations and belief; all this statement does is demand equality for the loyalist/unionist community."

The UPRG spokesman said it was a social battle that now lay ahead for loyalism.

"We need a cohesive approach to tackling the issues of poor educational achievement with our young males and we need to see more people becoming active in developing their communities.We need to ensure our communities develop the skills to compete for inward investment that provides a social economy in our communities.Loyalists and unionists need to become ready for the social battle that lies ahead," he said.