THE first signs that Arsenal's trumpeted renaissance may have been overplayed began to surface on Merseyside last night. Arsenal's limitations and their ill discipline were ruthlessly exposed by Liverpool to end their interest in the League Cup.

Arsenal's preoccupation with Robbie Fowler sometimes threatened to be their downfall, and as early as the fourth minute Michael Thomas arrived unannounced in their penalty area to meet one of John Barnes' better passes. The promise of a goal for Thomas against his former club was there, but in his haste he drove his shot too close to John Lukic.

Liverpool have lost their way somewhat in recent weeks and the collective nervousness which is inhibiting them showed again after 12 minutes. The mistake was Neil Ruddock's, the consequences dire. Dallying 20 yards from goal, he was dispossessed by John Hartson, whose subsequent run on goal was ended only when David James sent him crashing to the ground with an outstretched arm. Naturally Ian Wright converted the penalty.

There was to be no white flag of surrender, however. Patrik Berger struck the foot of a post and Barnes went close before the status quo was restored on 26 minutes by a rare headed goal by Steve McManaman.

Twelve minutes later Liverpool were in front fortuitously but deservedly. After declining to award a penalty when Lukic clattered into Fowler, Alan Wilkie opted to do so 20 seconds later when Bjornebye's corner was flicked on to the arm of Paul Dixon by Fowler's foot. Intent was questionable but, once the prolonged if futile protest had subsided, Fowler swept home from the spot as comfortably as had Wright before him.

Seven minutes into a second half which carried more than a hint of menace, Arsenal's defence succumbed a third time. Jason McAteer exchanged passes with McManaman before drilling in a sweet, low cross which Fowler converted from close range.

After 67 minutes, however, Arsenal were tossed a lifeline with the award of a second penalty as Mark Wright was deemed to have fouled Hartson. His namesake was accurate for a second time.

Eighteen minutes from the end Liverpool scored again, Berger sweeping in majestically from 25 yards.