TWO soldiers were seriously ill last night after an IRA mortar attack

on a Northern Ireland police station which injured 38 civilians.

The bombing in the centre of Newry, County Down, was carried out

without warning.

Three other soldiers and three RUC officers were also hurt when two

missiles were fired 15O yards over a busy street to land in the middle

of the security complex, which is near the border with the republic.

Another mortar fell short of the target, blasting a store, blowing out

windows, and showering glass on terrified women and children running for

cover.

Police said it was a miracle no-one had been killed.

Most of the civilian casualties were treated for shock and cuts. One,

a two-year-old girl, sobbed hysterically as she was carried into

hospital in her mother's arms.

It was the most serious terrorist attack in Northern Ireland since

Sinn Fein's refusal to endorse the Downing Street peace declaration, and

heightened fears the IRA was preparing to intensify its campaign.

The outrage following the attack among senior politicians and

churchmen increased pressure on Sinn Fein president Gerry Adams to call

on the IRA to halt the bloodshed.

Northern Ireland Secretary Sir Patrick Mayhew later visited the bombed

station, as Unionists demanded tougher security action against the

Provisionals.

Sir Patrick said the IRA did not care how many people they murdered,

and declared: ''We have a lot to be thankful for that people were not

killed by the dozen.''

Newry and Armagh SDLP MP Seamus Mallon said the republican movement

was now engaged in a prolonged process of dishonesty, distortion, and

self-deception.

He added: ''Systematically they are slamming shut every door to a

lasting settlement that has been opened in recent months, and the

inescapable conclusion is that they are incapable of even conceiving of

the concept of a real peace.''

SDLP leader John Hume, who was involved in secret talks with Mr Adams

before last December's Downing Street declaration, is now likely to face

growing resentment from those who want an end to the dialogue.

Police said the attack could easily have ended in a major disaster.

RUC divisional commander Niall Howe said: ''These imbeciles launched

what amounted to three gas cylinders being fired across commercial

property and over the top of a very busy street. It really is something

of a miracle that nobody was killed.''

In 1985, nine RUC officers were killed when the same station was

mortar-bombed.

Yesterday's attack was virtually a repeat. A red lorry was hijacked

from a family held hostage by armed and masked men in the south Armagh

village of Silverbridge.

It was parked just off Monaghan Street, then three missiles on the

back were fired in quick succession at the height of the town's morning

rush hour.

Catholic nuns, at least one nurse, several women, and children were in

the area at the time, as business owners prepared to open shops. One man

had his hand sliced open by shrapnel.

Staff at Daisy Hill hospital, where the injured were treated, said the

town centre was rocked by the explosions. The damage in part of the

police station at Corry Square, which has been attacked time and again

by the IRA, was thought to be extensive.

Two of the injured soldiers were described as ''seriously ill''. They

and a policeman suffering from facial injuries were transferred to

hospitals in Belfast.

One man suffering chest wounds was detained for further treatbent, but

all the other civilians were released.

* Irish police were questioning two men yesterday about the discovery

of a huge IRA arms cache.