Eyes of the world on Algeria as hostage crisis continues

By Ian Dunt

There are conflicting reports coming out of Algeria about the state of a hostage attack involving British citizens, but Foreign Office officials have insisted the situation has not yet been resolved.

That account contradicts a report from Algerian state news agency APS last night which said the crisis had ended with 34 hostages dead – at least one of them British – along with 14 kidnappers.

"Although details have yet to become final I am afraid we should be under no illusion that there will be some bad and distressing news to follow from this terrorist attack," said Alistair Burt, Foreign Office minister for the Middle East.

"Those who have been working with the families during the course of the day will continue that work of advice and support, though this will take some time."

The prime minister, who cancelled a speech on Europe planned for this morning, will convene a emergency Cobra meeting today in addition to the two which took place yesterday.

William Hague cut short his trip to Australia to return to the UK and there will be an emergency statement to the Commons later.

Yesterday's attack on the gas compound in eastern Algeria has strained Algerian relations with France, America and the UK, who all have hostages inside.

David Cameron only learned it was under way when he phoned his Algerian counterpart at 11;30 GMT yesterday morning, despite previously being assured he would be notified before any action took place.

Downing Street barely bothered to conceal its irritation at this development yesterday afternoon, particularly after the British government had offered assistance in the crisis, only to be turned down.

British pleas for a softly-softly approach to the emergency appear to have fallen on deaf ears, with Algerian forces attacking the compound in a manner which reinforced their reputation for heavy-handed responses to terrorist situations.

Some reports said helicopter gunships strafed workers living quarters where hostages were being held. Others even suggested warplanes were used for bombing attacks.

At the end of the raid, militants still appear to have held seven hostages - two Americans, three Belgians, one Japanese and one British citizen. – although details were contradictory and confused.

Algerian sources said terrorists had tried to transport hostages to a new location, triggering their response.

The counter-strike did free 600 Algerian workers and four foreign hostages - two from Scotland, one each from France and Kenya.

"A large number of hostages were freed and a large number of terrorists were eliminated and we regret the few dead and wounded," Algerian communications minister

Mohamed Said Belaid said, in a statement which claimed the attack was a success.

During a second phone call in the afternoon, the prime minister again reiterated to his Algerian counterpart that Algerian security forces needed to do everything they could to safeguard hostages

Twenty Britons currently remain unaccounted for .

Some reports suggest the terrorist group, which goes under the name Mouwaghina Bi Dam ('Those Who Sign in Blood'), was multinational, with at least one hostage-taker speaking in a British accent.

French President Francois Hollande said the attack showed why his military intervention in Mali was necessary, but some experts have questioned whether the strike really is in retaliation for France military excursion.

The complexity of the operation would have required weeks of planning and French intervention in Mali has only been ongoing for a few days.