Two men were arrested and two bombs seized at Newry in County Down - on the border with the Irish Republic.

Northern Ireland Chief Constable Hugh Orde said it was too early to confirm the intended target, but said police action had saved many lives.

The two under-car booby trap bombs were discovered when the police stopped a car.

Mr Orde said two people, aged 35 and 36, were arrested in a first car and the devices were found in a second car.

He said it was a highly effective security operation.

Chief Constable Hugh Orde: "Major success"

The police operation started early on Wednesday morning when the first car was stopped by police on a secondary cross-border road known as the Fathom Line, near Newry.

The men in this car were detained and a search quickly located the second vehicle.

After the bombs were found in that, army technicians moved in to make them safe.

There were follow-up arrests in Castlewellan and Newcastle which are believed to be linked to the operation at the border.

Police said they did not know the intended destination of the bombs.

The chief constable said: "It is too early to say which particular group was involved.

"What I can say is that it is interesting that on the BBC's Crime Day, at this time of the morning, we are talking about another major success.

"Massive police resources have been put into this operation and as you can see, our Army colleagues are also helping us."

'Protecting life'

He added: "This is a substantial piece of success for the PSNI. It has protected people. It is completely in accord with our obligations under Patten in preserving life.

"We will continue to reassure communities by undertaking these tasks.

An incident like this clearly indicates the level of threat from mainstream or dissident republicans at this time

Danny Kennedy Ulster Unionist

"It is also important to note that while we carry on with this type of activity, the officers you see today who are dealing with this, cannot deal with ordinary decent crime - as people bizarrely put it here - because they are tied up in protecting people's lives."

Mr Orde said he was very mindful of the young Catholic PSNI recruit who was injured in an attack using a booby-trap device in County Antrim.

"These devices are now in our hands and they will not kill anyone," he said.

The chief constable said present dissident republican activity was "extremely high".

"It was extremely high when I took over this job and this is more evidence to support that assessment.

"I'm not speculating at this point as to who the targets may have been but make no mistake, there was an intent to place these devices under cars."

The MP for the area, the SDLP's Seamus Mallon, said dissident republicans were acting against the will of the people.

"These people, of course, are fanatical. They are fanatical to the extent that they don't recognise the rights of others," he said.

"Those others are the vast majority of people in Northern Ireland who have decided that they do not want violence - but of course the fanaticism of these people is to deny people their rights."

'Community support'

Ulster Unionist assembly member for Newry and Armagh, Danny Kennedy, said it was clear republican terrorists still posed a threat.

"Obviously I warmly welcome and congratulate the success of the security force's operation and the police service's interception of these devices," he said.

Quentin Davies: "Highly significant security operation"

"An incident like this clearly indicates the level of threat from mainstream or dissident republicans at this time."

John Fee of the nationalist SDLP said it was clear there was an intention to cause harm to people and property.

"These people have no clear political agenda and no community support," said the assembly member.

Shadow Northern Ireland Secretary Quentin Davies said: "I strongly congratulate the PSNI and the Army on what appears to be a highly significant security operation.

"It seems certain that they have succeeded in foiling a major terrorist atrocity that could have resulted in the loss of many lives."