Around 11.20pm last night, police observed that a number of wreaths and wooden crosses that had been placed at a war memorial in the Sugar Island area of city had been thrown into a river.
They subsequently arrested a woman in connection with the incident and remains in custody assisting officers with their enquiries.
PSNI Sergeant Lawson said the incident is being treated as a hate crime.
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He added: “Hate crime, in all its forms, is totally unacceptable. It is the responsibility of each and every one of us to ensure that we live in a society where diversity is respected.
“If you or someone you know is the victim of a hate crime please contact police or your local support agency. For more information visit https://www.psni.police.uk/crime/hate-crime/here-to-help/
“I want to appeal to anyone who was in the area last night, around 11:20pm and saw what happened, or anyone who has information they believe may assist our investigation to call us on the non emergency number 101, quoting reference number 1328 of 29/11/18.
“Alternatively, information can also be provided to the independent charity Crimestoppers on 0800 555 111 which is 100% anonymous and gives people the power to speak up and stop crime.”