THE discovery of a crude bomb in Dundalk has added to fears that extreme loyalist elements might be planning attacks in the Republic if there is an increase in political tension in the North during the next two months.
Loyalist paramilitary sources have again indicated they might return to violence if the British government allows Sinn Fein into political talks at Stormont before an IRA ceasefire.
The sources also said that targets in the Republic would be chosen if there was a decision to increase loyalist violence.
There are concerns that the UDA might be the most likely loyalist group to revert to violence as its current leadership is said to be militant and volatile.
Both the UDA and the other loyalist paramilitary organisation, the UVF, have carried out attacks in the past six months but have not admitted this.
The Taoiseach, Mr Bruton, yesterday stressed the need for vigilance, saying a "safety first approach" towards the possibility of terrorist attacks was necessary. "Obviously, this reminds us of the need to maintain a very vigilant security presence in regard to paramilitary violence," he said while campaigning in the west.
It was not clear yesterday if either the UDA or UVF was responsible for leaving an explosive device in the centre of Dundalk on Saturday night.
It is possible it could have been the work of a breakaway loyalist faction calling itself the Loyalist Volunteer Force (LVF) which was responsible for last month's murder of a GAA official, Mr Sean Brown, in Bellaghy, Co Derry, last month.
An anonymous telephone caller to Ulster Television's newsroom yesterday morning asked that the Garda be warned Dublin Airport "should be cleared right away" adding "P.S. there is a device lying in Dundalk from last night."
The caller gave a codeword not recognised at the television station. A UTV journalist alerted the RUC press office which passed on the warning to the Garda. Searches began in the airport and at Dundalk.
By mid afternoon yesterday nothing had been found at the airport and the area was declared clear.
It is the second time in the past year that a hoax warning has come from a loyalist source in the North about a bomb at the airport.
However, shortly after the search began in Dundalk, a suspicious plastic bag was discovered in a laneway off Clanbrassil Street, in the centre of the town. The bag showed some signs of scorching and the area was cleared it.
The Army's Explosive Ordnance Disposal (EOD) team stationed in Monaghan was called to the scene and examined the device.
It is understood it contained a commercial detonator which had exploded during the night.
The bag also contained a Thermos flask in which was a substance which might be explosive and an alarm clock wired to the detonator. The suspected explosive is being examined by forensic experts at Garda Headquarters.
Initial examination of the device suggested the flask did not contain the same type of Powergel commercial explosive used in another loyalist bomb left at the Sinn Fein offices in Monaghan on March 3rd last. That device contained 12kg of Powergel, an explosive used in mining, and again it flailed to detonate.
For security reasons, it has not been revealed why the Monaghan bomb failed to explode. However, it is understood that the loyalist bombmakers might have left part of the detonating mechanism unassembled.
It is not clear if this was done deliberately or as a result of an oversight or inexperience in bombmaking.