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LONDON (Reuters) - British police defused a bomb left in an abandoned car in London's theatre district on Friday and launched a counter-terrorism investigation.

The bomb was found in a light green Mercedes outside a nightclub in the early hours of Friday, an officer quoted witnesses as saying. Police played down media reports that the bomb was "massive."

The witnesses said the occupant drove "erratically" before smashing into bins outside the nightclub and running off. Bouncers from the nightclub investigated, saw what looked like gas canisters inside the vehicle and called the police.

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LONDON — Police in London's bustling nightclub and theater district on Friday defused a bomb that could have killed hundreds, after an ambulance crew spotted smoke coming from a Mercedes filled with a lethal mix of gasoline, propane and nails, authorities said.

The bomb near Piccadilly Circus was powerful enough to have caused "significant injury or loss of life" — possibly killing hundreds, British anti-terror police chief Peter Clarke said.

Britain's new home secretary, Jacqui Smith called an emergency meeting of top officials and later said the attempted attack was "international terrorism."

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BAGHDAD (AP) — A car bomb killed 22 people Thursday in a bus station in western Baghdad, and police said 20 beheaded bodies had been discovered on the banks of the Tigris River southeast the capital. Government security officials raised doubts about the decapitation report.The car bomb ripped through a crowded transport hub in southwest Baghdad’s Baiyaa neighborhood at morning rush hour, killing at least 22 people and wounding more than 50, police said on condition of anonymity because they were not authorized the release the information.

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LONDON (AP) - Britain's new prime minister has begun naming his cabinet, and his senior circle includes some prominent Iraq war critics.

Brown tapped David Miliband as Foreign Secretary. Miliband voted in favor of British participation in the Iraq war but has since voiced concerns about the conflict. He has also criticized Tony Blair's Middle East policy at times, arguing last summer that Blair should have insisted on an immediate cease-fire when Israel went to war with Hezbollah (hez-BUH'-lah) in Lebanon.

Brown also gave a foreign affairs post to Mark Malloch-Brown, the former deputy UN secretary-general. During his time at the UN, Malloch-Brown clashed with then US Ambassador John Bolton and derided the US approach to Darfur as "megaphone diplomacy."

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