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From the BBC:

Canada's authorities say they have arrested and charged two people with conspiring to carry out an "al-Qaeda inspired" attack on a passenger train.

At a news conference, the authorities said the suspects Chiheb Esseghaier, 30, and Raed Jaser, 35, were arrested in Montreal and Toronto on Monday.

They allegedly planned to derail a VIA passenger train in the greater Toronto area. It was not clear when.

More from Canadian Broadcasting.
Highly placed sources tell CBC News the alleged plotters have been under surveillance for more than a year in Quebec and southern Ontario.

The investigation was part of a cross-border operation involving Canadian law enforcement agencies, the FBI and the U.S. Department of Homeland Security.

The arrests Monday morning were co-ordinated and executed by a special joint task force of RCMP and CSIS anti-terrorism units, combined with provincial and municipal police forces in Ontario and Quebec.

BBC news reporting on TV indicates that the route mentioned was towards New York. (From a sidebar on this CNN page)
Rep. Peter King tells CNN the targeted train was "going from Canada to the U.S."
Although there appears to be Iranian involvement, this does not extend to state sponsorship.

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