Israeli police officers say they have uncovered an Islamic Jihad bomb-making factory inside the Green Line, in pre-1967 Israel.
The police have arrested three Israeli Arabs in Jaljuliya.
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The news comes just days after Israel’s Prime Minister Ariel Sharon warned of a disturbing increase in terrorist activity among the country’s Arab population.
He said they remain a tiny minority, but are showing signs of increasing.
He said Iran is behind much of the activity.