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* Russia says most victims were killed by knives, shot

* UK disagrees with Russia, says most killed by government

(Adds British envoy, statement by Ban and Annan, background)

By Louis Charbonneau

UNITED NATIONS, May 27 (Reuters) – The U.N. Security Council

met on Sunday to discuss the recent massacre in the Syrian town

of Houla, which the United Nations and Western powers blamed on

the Syrian government but Damascus an d Moscow suggested was due

to a rebel attack.

At least 116 people, including many children, were killed in

the Houla attack, the head of the U.N. observer mission in Syria

General Robert Mood told the 15-nation council, according to a

diplomat who was in the closed-door meeting. The diplomat spoke

to Reuters on condition of anonymity.

Russian Deputy U.N. Ambassador Alexander Pankin told

reporters Moscow was skeptical about suggestions that the Syrian

government was behind the massacre, saying it appeared most of

the victims were killed with knives or shot at point-blank

range.

British Ambassador Mark Lyall Grant disagreed.

“It seems quite clear that the massacre in Houla was caused

by heavy bombardment, by government artillery and tanks,” Lyall

Grant said ahead of the meeting.

Security Council diplomats said they hoped to agree on some

kind of condemnation of the massacre, though Russia was clearly

at odds with the Western powers regarding who was to blame.

Lyall Grant was asked if he thought the Houla massacre could

finally bring Russia and China around to support sanctions

against Damascus, something Moscow and Beijing have so far

rejected. He referred to Russia’s doubts about the Syrian

government’s responsibility for the onslaught on Houla.

“It doesn’t sound promising,” Lyall Grant said.

Russia has accused the United States and Europe of pursuing

Libya-style regime change in Syria, where President Bashar

al-Assad has been trying to crush a 14-month-old insurgency that

began peacefully but has become increasingly militarized.

Syria is home to Russia’s only warm-water port outside the

former Soviet Union and is a major purchaser of Russian weapons.

The emergency council meeting was called after Russia

rejected a French and British proposal for a statement

condemning the massacre, diplomats said on condition of

anonymity.

Moscow, which remains a staunch ally of Syrian President

Bashar al-Assad, told other members of the 15-nation council

that it wanted a briefing from Mood before agreeing to a

statement, envoys said.

Mood spoke to the Security Council via a video link from

Damascus.

In contrast to the Russian envoy’s suggestions that the

rebels were to blame for Houla, U.N. Secretary-General Ban

Ki-moon and international mediator Kofi Annan, Ban’s

predecessor, issued a joint statement on Saturday in which they

made clear they held the government responsible for the

massacre.

“This appalling and brutal crime involving indiscriminate

and disproportionate use of force is a flagrant violation of

international law and of the commitments of the Syrian

Government to cease the use of heavy weapons in population

centers and violence in all its forms,” Ban and Annan said.

Annan brokered a peace plan earlier this year that called

for a truce, deployment of U.N. observers to monitor the

ceasefire, humanitarian access and dialogue between the

opposition and government aimed at a “political transition.”

But a truce declared for April 12 never took hold and Ban

reported last week that there has been little progress on the

other aspects of Annan’s six-point plan. Annan is scheduled to

brief the council on Wednesday about his mediation efforts.

(Reporting by Louis Charbonneau; Editing by Philip Barbara and

Jackie Frank)