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* Death toll from alleged shelling of town soars

* France condemns “massacre”

* Syria blames “terrorist gangs”

(Adds Ban Ki-moon, William Hague statements)

By Joseph Logan

BEIRUT, May 26 (Reuters) – The United Nations said on

Saturday that more than 92 people were killed in what activists

said was an artillery barrage by government forces in the worst

violence since the start of a U.N. peace plan to slow the flow

of blood in Syria’s uprising.

The bloodied bodies of children, some with their skulls

split open, were shown in footage posted to YouTube purporting

to show the victims of the shelling in the central town of Houla

on Friday. The sound of wailing filled the room.

The carnage underlined just how far Syria is from any

negotiated path out of the 14-month-old revolt against President

Bashar al-Assad.

“This morning U.N. military and civilian observers went to

Houla and counted more than 32 children under the age of 10 and

over 60 adults killed,” the head of U.N. team monitoring the

ceasefire – which has yet to take hold – said.

“The observers confirmed from examination of ordinances the

use of artillery tank shells,” Major General Robert Mood said in

a statement, without elaborating. “Whoever started, whoever

responded and whoever carried out this deplorable act of

violence should be held responsible.”

In a statement, U.N. Secretary-General Ban Ki-moon demanded

“the Government of Syria immediately cease the use of heavy

weapons in population centres”.

Activists said Assad’s forces shelled the town of Houla on

Friday evening after security forces killed a protester and

following skirmishes between troops and fighters from the Sunni

Muslim-led insurgency fighting Syria’s rulers, who belong to the

minority Alawite sect.

A British-based opposition group, the Syrian Observatory for

Human Rights, said Houla residents fled, fearing more shelling.

It said one person was killed in the northern town of Saraqeb

when troops fired on a protest against the killing.

Syrian state television aired some of the footage

disseminated by activists after the killing in Houla, calling

the bodies victims of a massacre committed by “terrorist” gangs.

It also showed video of bodies with what looked like gunshot

wounds to the head, sprawled on bloodstained mattresses.

Activists distributed footage appearing to show protests in

Aleppo, the largest city in the north.

FAMILIES KILLED

A member of the fragmented exile group that says it speaks

for Syria’s political opposition said Assad’s forces had killed

“entire families” in Houla in addition to the shelling.

“The Syrian National Council (SNC) urges the U.N. Security

Council to call for an emergency meeting … and to determine

the responsibility of the United Nations in the face of such

mass killings,” SNC spokeswoman Bassma Kodmani said.

Although Annan’s six-week old ceasefire plan has failed to

stop the violence, the United Nations is nearing full deployment

of a 300-strong unarmed observer force meant to monitor a truce.

The plan calls for a truce, withdrawal of troops from cities

and dialogue between the government and opposition.

French Foreign Minister Laurent Fabius condemned the

violence as a “massacre”, and said he wanted to arrange a

meeting in Paris of the Friends of Syria, a group that brings

together Western and Arab countries keen to remove Assad.

UK Foreign Secretary William Hague said he was coordinating

a “strong response” to the killings and would call for the

Security Council to meet in the coming days.

In a statement, Arab League head Nabil Elaraby called the

killing in Houla a “horrific crime”, urging the U.N. Security

Council – where Russia and China have protected Syria – to “stop

the escalation of killing and violence by armed gangs and

government military forces.”

Syria calls the revolt a “terrorist” conspiracy run from

abroad, a veiled reference to Sunni Muslim Gulf powers that want

to see weapons provided to an insurgency led by Syria’s majority

Sunnis against Assad, a member of the minority Alawite sect.

“TERRORIST GROUPS”

Ban said on Friday that recent bomb attacks may have been

the work of “established terrorist groups” and urged states not

to supply arms to either the government or rebel forces.

“Those who may contemplate supporting any side with weapons,

military training or other military assistance, must reconsider

such options to enable a sustained cessation of violence,” he

told the Security Council in a letter.

The United Nations has accused Assad’s forces and insurgents

alike of grave human rights abuses, including summary executions

and torture.

Ban has also expressed fear that Syria’s conflict will

destabilise neighbouring Lebanon, whose delicate sect-based

politics has been shaken by tensions among Lebanese foes and

friends of the uprising in Syria.

In the latest episode, gunmen in northern Syria snatched a

group of Lebanese Shi’ites this week as they were returning from

a religious pilgrimage, deepening unrest after sectarian

fighting in northern Lebanon and battles between pro- and

anti-Syrian Sunni factions in the capital over the last two

weeks.

Uncertainty over their increased tension in Beirut on

Saturday, a day after Lebanon’s top officials said the release

of the hostages and their return home was imminent. Shi’ites had

blocked roads and burned tyres after hearing of the abduction.

The prime minister said on Friday afternoon they had been

freed, but by Saturday there was still no sign of them. A member

of the SNC said they were still in captivity, further angering a

crowd that had gathered at Beirut’s airport to meet them.

(Additional reporting by Ayman Samir in Cairo; Editing by Jon

Hemming)