Italian police have arrested eight men suspected of providing false identity papers for members of Osama bin Laden's al Qaeda network, a senior police inspector said yesterday.

The eight were seized in Milan, Italy's financial capital, on Thursday, while a ninth suspect escaped capture. All but one of the group were Muslims from North Africa.

Massimo Mazza, head of Milan's special operations investigation team (Digos), said he believed the men may have provided false identity papers for some of the hijackers who carried out the September 11 attacks on US cities.

"We do not have the documentation or objective data on this at the moment. However, we have wiretaps which have fuelled this suspicion," Mazza told a news conference.

He added that the eight suspects provided the: "vital underground cover needed by terrorist criminals".

The group supplied Italian passports, national identity papers, driving licences and residence permits. They also forged British, French, German, Spanish and Belgian documents.

"They charged clients between 100 to 200 euros, up to 550 euros, depending on what the document was and from which country," said Stefano Chirico, the Digos investigator who orchestrated the arrests.

"They were putting out on average 50 documents every 10 days," he added.

Mazza told reporters that the suspects had links with another group of forgers which was broken up last year and was "clearly tied to terror organisations".

Two of those arrested on Thursday were brothers from Morocco - Mohamed Kazdari, 36, and Said Kazdari, 32 - who had already served time in an Italian jail for forgery.

Last week, a Milan court starting trying alleged members of Islamic groups accused of criminal association and falsifying documents. The defendants deny the charges.

US officials have said they believe an Islamic cultural centre linked to a mosque in Milan was used as al Qaeda's main European base. Muslim leaders have denied the accusation.

On Wednesday, Italian newspapers reported that investigators had uncovered a plot by al Qaeda operatives who last year planned to attack targets such as a church in Venice, the Vatican and US diplomatic missions in Europe.

Security has been stepped up in the Jewish quarters of both Venice and Rome following reports of possible plans for fresh al Qaeda attacks.

Venice was on high alert with small submarines patrolling the city's lagoon while in both Venice and Rome, extra police forces patrolled their ancient Jewish quarters.

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