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According to a Spanish Interior Ministry statement, Villota, who is originally from Bilbao, has lived with false documents in the UK and has been "waiting for instructions" from Eta.
The Ministry says Villota was recruited in 1990 to join the legal Matalaz Command, under the Command Vizcaya.
Latest ITV News reports
A fugitive Spanish terror suspect who has been on the run for 17 years has been arrested in Liverpool.