The Army tonight denied Sinn Fein claims that a new watchtower has been erected in South Armagh.
Sinn Fein councillor Ms Elena Martin said she had been contacted by residents in the Forkhill area to complain about the erection of a mountain-top "spy post".
Ms Martin claimed the British government had reneged on promises to implement a rolling programme of demilitarisation and had engaged in rebuilding military installations in the area.
"Residents in Forkhill awoke this morning to discover that another new spy post has been built on Slievebracken Mountain," she said.
"Residents' suspicions were aroused when they witnessed building materials being airlifted into this already heavily militarised area during the weekend.
"This has seriously impacted on people's confidence in the peace process," she added.
However, an army spokesman said improvements were being carried out to the water supply of an army base in the area, while a new water tank erected on scaffolding may have been mistaken for a watchtower.
"Some essential maintenance work is taking place at Cross Slieve Base," he said. "All possible steps to minimise the impact on the local community have been taken, including the minimum usage of helicopters.
"This base, like others in south Armagh, is more than 15 years old and in a location where it is constantly exposed to the elements," he added.
Army watchtowers in the area have been attacked several times by republicans in the last year. PA