Baghdad: A car-bomb attack killed 23 people South of Baghdad in the latest atrocity to blight Iraq's build-up to sovereignty this week as the caretaker Prime Minister said instability could delay national elections for two months.

Meanwhile Islamic militants threatened to behead three Turkish hostages unless Ankara pulls its companies out of Iraq within 72 hours, but the Turkish Government said it never gave in to terrorists.

Twin car bombs exploded in the centre of Hilla, a mainly Shiite town 100 kilometers south of Baghdad, which has remained relatively peaceful in recent months, late yesterday (June 26, 2004).

The local hospital and the health ministry in Baghdad said 23 people had been killed, revising down a toll of up to 40 dead given earlier by the US-led coalition occupying Iraq.

Polish forces which patrol the area around the former Saddam mosque, said, "As a result of that barbaric act, many innocent Iraqis lost their lives. Many children were among them."

The top US administrator Paul Bremer, who visited the former mosque now being used as a democracy centre and religious university today (June 27, 2004), said those responsible "are the enemies of Iraq, not enemies of the occupation, not (enemies of) the coalition. They are enemies of Iraq."

Two rockets also hit the protected area of central Baghdad used by the coalition today but there were no immediate reports of casualties or damage.