EXPLOSIVE DISCOVERY

August 3, 2002 -- The Israeli army yesterday found traces of the
explosives that blew up the Hebrew University cafeteria during a raid
on hidden weapons labs in Nablus' infamous casbah, authorities said.
The discovery came as more than 100 tanks and armored vehicles swept
into the West Bank's largest town in search of the bombers who killed
seven people, including five Americans, on the Jerusalem campus
Wednesday.

At least five Palestinians were killed and 50 arrested as Israel took
control of Nablus.

Authorities said that before Hamas' military commander, Salah Shehada,
was blown up by an Israeli bomb last week, he managed to shift Hamas'
base of operations in the West Bank from the Jenin refugee camp to
Nablus' casbah.

Following the Passover massacre in March, Israeli forces made
intensive house-to-house searches for terrorists in Jenin but not in
the narrow streets of Nablus' Old City because of the dangers.

But yesterday morning, the army began a "Jenin-like" operation that
uncovered two bomb labs in Nablus.

One of the labs is believed to have supplied explosives for several
homicide bombers, including two who struck at Tel Aviv's old bus
station last month.

"There's been a train of Palestinian terrorism that's been hitting
Israel over the past week to 10 days, and what we've been able to
discern is that its hub is in Nablus," said Israeli government
spokesman Dore Gold.

The Israel forces were expected to remain in Nablus for several days.

Palestinian President Yasser Arafat denounced the raid as a "new
massacre."

He also demanded United Nations action after Israel demolished four
Palestinian houses in West Bank towns. Three of the homes belonged to
relatives of homicide bombers.

"I am asking for quick international intervention from the United
Nations," Arafat told a news conference in Ramallah, his West Bank
headquarters.

"If they are not able to send forces, they should send observers."

Late yesterday, a fierce gunfight erupted in the central Gaza Strip
between Israeli troops and Palestinian gunmen.

The military said soldiers destroyed an abandoned building used by
Palestinians to fire anti-tank missiles. There were no immediate
reports of casualties.

Security forces also reported capturing two would-be bombers, one
intending to blow himself up in Tel Aviv, the other headed to an
undisclosed target inside Israel.