It is going into T3 despite what it wants. From a national consistency point of view that has to be the right thing to do, and there should never have been local negotiations.
However, and this is my fear, it will provoke local protests and those protests can and could get violent and go national. That is what the government is really scared of and why it has held off for so long. Imagine the citizens of the biggest cities defying the government. It could happen.
I think that is why the government has tried to get GM on board, because at the end of the day the government has to have the final say. Troops on the streets: don't bet against it.