German investigators were particularly disturbed that even after it became clear that the plot leaders knew authorities were after them, the suspects continued to purchase bombmaking materials and move ahead with their plot. Ultimately, according to German officials, the suspects acquired enough high-concentrate hydrogen peroxide to make three car bombs, each with explosive power equivalent to nearly 200 pounds of TNT. That's several times the power of the hydrogen-peroxide knapsack bombs that suicide bombers used to attack the London transport system on July 7, 2005. German investigators said that the plot would have been relatively cheap to carry out. A 12-barrel supply of concentrated peroxide sells for 3,000-4,000 euros ($3,500-$4,500); travel costs and other overhead costs would have run a few thousands euros more. Investigators saw some evidence that the alleged German-based plotters financed their activities with ATM cards given to them by new recruits sent off by the plot leaders to Pakistan for training.

But German law enforcement moved in before the alleged plot could be carried out. In fact, authorities embarked on a James-Bond style mission to defuse the explosives before they were even built. Investigators wanted more time to watch the suspects before making arrests in the case, but they were concerned that the plotters might secretly begin using the stockpiled hydrogen peroxide to begin making the explosives. So authorities snuck into the building where the barrels of peroxide were stored and, unknown to the suspects, replaced them with a watered down version of the chemical that wouldn't explode, according to a German official.

Terror Watch, written by Michael Isikoff and Mark Hosenball appears online weekly

© 2007