Blast kills Iraqi leader

A suicide car bomb killed the head of Iraq's American-appointed governing council today.

In a major setback to the coalition, Ezzedine Salim was blown up as he queued to enter the main allied compound in Baghdad.

His murder, in a blast which killed eight others, left a major gap at the top of the new Iraqi leadership which is due to form an interim government in only six weeks.

Mr Salim, also known as Abdul Zahra Othman Mohammad, was one of the most senior Shia leaders and based in Basra, in the Britishcontrolled sector. He was expected to play a high-level role in the interim government, which is meant to include figures from all Islamic groups and regions.

It appeared he was deliberately targeted by a suicide bomber waiting in ambush. Mr Salim was the current head of the council, a post which rotates between members every month.

Mr Salim, leader of the Islamic Dawa Movement, was praised as a writer, philosopher and political activist, who edited several newspapers and magazines.

He was in a convoy of five vehicles which passed the bomber's car when it exploded, said witnesses. His driver and assistant were among those killed and two other cars were destroyed.

Smoke was seen rising from the site of the blast on the west side of the Tigris river while firefighters and about 10 ambulances went to the scene. The attack took place amid rising turmoil as insurgents seek to disrupt the 30 June transfer of power to an Iraqi-led government.

Foreign Secretary Jack Straw condemned the killers as "enemies of the Iraqi people". Education Secretary Charles Clarke admitted the death was a huge blow to hopes for a smooth transfer of power to local Iraqis from the coalition.

"Every success for those who are trying to disrupt the strategy we

have - and a car bomb is a success for those people - does make it more difficult for those who are trying to move to a more peaceful future," he said.

He added that it was vital for the coalition to keep its nerve and "stay on our path to make the progress that the people of Iraq want to see".

Earlier four bombs blasted British banks in Turkey, hours before a visit today by Tony Blair. They went off outside branches of HSBC in Ankara and Istanbul as the Prime Minister was preparing to fly to talks with the Turkish government. The attacks - blamed on Islamic extremists - caused minor damage and no deaths. Six months ago 60 people died in four bomb attacks in Turkey. Among the dead was Britain's consul-general Roger Short.

The latest bombings appeared to be an attempt to disrupt Mr Blair's talks with Turkish premier Recep Tayyip Erdogan, which were to cover the crisis in Iraq as well as EU enlargement. It came as Britain and America agreed a new plan to speed up the withdrawal of coalition troops from Iraq. In a marked change of tone, Downing Street sources were speaking of pulling out as quickly as possible. Previously, ministers have emphasised their determination to stay "as long as it takes" to keep Iraq secure.

The new exit strategy will mean greater sovereignty for the interim Iraqi government. During the summer the Iraqis will take control of their own national army and police force and will be helped to establish an intelligence agency and counterterrorism capability. British and American forces will stay only until the security situation is calmer. "The crucial difference is that coalition troops will remain only with the consent of the Iraqi government," said a senior government official.

No date has been set for a full withdrawal. The aim instead is to speed up the exit by promoting Iraq's ability to take over its own security and to win local support by switching policing to Iraqis wearing their own national uniform.

Mr Blair is said to have agreed the plan in two phone conversations with President Bush over recent days. One British official said the Americans were "learning from the way British forces have run things in the south".

This was a reference to Britain's success in promoting Iraqi political involvement and security training around Basra.

Downing Street said the aim was to withdraw British troops "as quickly as possible" but emphasised forces would not leave until Iraq was able to manage its own government and security..