A MILITARY BOMB SQUAD WAS CALLED TO WATSONVILLE ON SATURDAY. SHORTLY BEFORE NOON, POLICE RECEIVED REPORTS OF A POSSIBLE HAND GRENADE ON THE 3-HUNDRED BLOCK OF PALM AVENUE. OFFICERS EVACUATED THE AREA AS THE SANTA CRUZ COUNTY BOMB SQUAD IDENTIFIED IT AS A MILITARY ORDNANCE. EXPERTS FROM TRAVIS AIRFORCE BASE WERE CALLED IN TO EXTRACT AND DETONATE THE DEVICE. THE AREA WAS DECLARED CLEAR AT BOUT 5:30 P-M . ANYONE WITH ANY INFORMATION ON THE EXPLOSIVE IS ENCOURAGED TO CONTACT THE WATSONVILLE POLICE DEPARTMENT.