Police were this morning continuing to question two suspected republican dissidents about a bomb seizure.
The men were arrested yesterday after armed police stopped a car near the Border in a major undercover operation against the "Real IRA".
Two under-car booby trap devices were recovered from a second vehicle abandoned not far away near Newry, Co Down, but the driver escaped.
Although no details were revealed about likely targets, the Chief Constable of the Police Service of Northern Ireland, Mr Hugh Orde, said death and mayhem had been foiled.
The two men arrested, aged 35 and 36, are believed to come from the South Down area where houses in Newcastle and Castlewellan were later searched as part of a follow-up operation. They are well known to the police in Northern Ireland, security sources said.
Northern Secretary Dr Reid has confirmed arrangements to set up an independent monitoring of the level of violence and paramilitary involvement in it.
The person with the job of assessing the level of violence, particularly among groups like the IRA and loyalist Ulster Volunteer Force who are supposed to be on ceasefire, will be announced later.
The new monitor, who will have access to security chiefs and intelligence briefings, will report regularly to the Secretary of State, and he will determine if any of the organisations have breached their ceasefires.
PA