The Ulster Unionist Leader David Trimble has called for a full inquiry into the IRA atrocity in Claudy.
Mr Trimble said the 'barbaric act in Claudy devastated a whole community and today's development will cause fresh anguish for relatives who only ever sought justice.'
He continued that 'allegations of a cover-up need to be vigorously investigated' and 'there must be the same very visible, searching and public examination as that which went in to the Bloody Sunday Inquiry. Nothing less will do'.
Earlier, the assistant Chief Constable of the PSNI outlined details of the police review of their investigation into the 1972 bombing.
Sam Kincaid confirmed that the then Northern Secretary, Willie Whitelaw, met Cardinal William Conway, who was primate of all Ireland at the time.
They discussed the alleged involvement of a Catholic priest in the atrocity, in which nine people were killed.
The priest was later transferred to a parish in Raphoe; he died in 1980.
It has been alleged there was a cover up.