TERRORISM investigators have not ruled out the possibility of a sleeper cell of agents with links to a Palestinian extremist network operating out of Sydney.
The admission came during the official re-launch of an investigation into the 1982 bombings of the Israeli Consulate General's office in Sydney's Westfield Tower and the Hakoah Club at Bondi.
While no-one was killed, NSW Counter Terrorism Assistant Commissioner Peter Deid said the attacks had the potential to have "catastrophic results".
He said modern technology had revealed both bombs had the capacity to flatten the buildings they were planted in had the detonators not been faulty.
Forensic experts also discovered a direct link to Palestinian extremist network May 15.
The group, which took its name from the date the war started between the Arab states and Israel in 1948, was responsible for series of attacks targeting Jewish interests around the world in the 70s and 80s.
At the time of the Sydney bombings, a 31-year-old man was arrested but the then Director of Public Prosecutions dropped the case due to lack of evidence.
Following an 18-month investigation, which included joint operations with counter terrorism organisations in the US and Europe, police released a series of photographs of the damage and two comfits of suspects over the weekend.
Assist Com Deid said he believed a number of people, including the bombers themselves, still lived in Australia and expressed concerns about a possible sleeper cell linked to modern day version of May 15, operating out of Sydney.
He said it was hoped enough time had passed for those with a "heavy conscience" to come forward and urged anyone with information to phone Crime Stoppers on 1800 333 000.
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