NEW YORK (Reuters) - Two homemade grenades exploded outside the building
housing the British Consulate's office before dawn on the day Britain was
holding elections, but police said later on Thursday it may be linked to the
Israeli-Palestinian conflict. 

Windows were shattered, but no injuries were reported and no motive was
known for the incident, which security experts said highlighted the city's
continued vulnerability despite its high-alert status and measures
undertaken since the Sept. 11, 2001, attacks. 

The explosions at the midtown Manhattan office block near the United Nations
occurred shortly after 3:30 a.m./0730 GMT when two metal dummy grenades
packed with gunpowder exploded in a concrete flower box, police said. 

"We do not at this point have any idea who did it or a motive," New York
Mayor Michael Bloomberg told a news conference near the building, which also
houses other offices of foreign companies. 

"It is true the British Consulate is in that building, but I don't think
anybody should jump to conclusions," Bloomberg said, adding no one had
claimed responsibility. 

Later, police chief Raymond Kelly told reporters he was also looking at
another possible target -- a board member of Caterpillar Inc. who works in
the building. The company sells bulldozers used by Israel to raze
Palestinian homes. 

Kelly noted there had been an April 13 protest outside the building by a
group called Jews Against the Occupation. 

On its web site, the group describes itself as a group of "American Jews
(who) reject the Israeli government assertion that it is 'necessary' to
subjugate Palestinians for the sake of keeping Jews safe." 

A spokesman for Caterpillar could not immediately be reached. 

Police were examining videotape from security cameras that appeared to show
a cyclist lighting and then throwing the grenades toward the building before
fleeing the scene, law enforcement sources said. 

The incident, which briefly upset British financial markets, occurred as
British voters were deciding whether to return Prime Minister Tony Blair for
a third term in office. In the short general election campaign Blair battled
public anger against his support of the war in Iraq.    



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