BAGHDAD - THE United States suspended all land travel by US diplomats and other civilian officials in Iraq outside Baghdad's heavily fortified Green Zone, amid mounting public outrage over the alleged killing of civilians by the US Embassy's security provider Blackwater USA.

The move came on Tuesday even as the Iraqi government appeared to back down from statements on Monday that it had permanently revoked Blackwater's licence and would order its 1,000 personnel to leave the country - depriving American diplomats of security protection essential to operating in Baghdad.

'We are not intending to stop them and revoke their licence indefinitely but we do need them to respect the law and the regulation here in Iraq,' government spokesman Ali Al-Dabbagh told CNN.

Details of the weekend shootings have not been released, but The New York Times reported late on Tuesday that a preliminary review by Iraq's Ministry of Interior found that Blackwater security guards fired at a car when it did not heed a policeman's call to stop, killing a couple and their infant.

The report, though unverified, seemed to contradict an account offered by Blackwater that the guards were responding to gunfire by militants. According to the story on the Times Web site, the report said that Blackwater helicopters had also fired. The Iraqi Ministry of Defence said that 20 Iraqis were killed, considerably higher than the 11 dead reported before.

The US order confines most American officials to a 9-square-kilometre area in the centre of the city, meaning they cannot visit US-funded construction sites or Iraqi officials elsewhere in the country except by helicopter. The notice did not say when the suspension would expire.

Review all foreign security firms
The Iraqi Cabinet decided on Tuesday to review the status of all foreign security companies. Still, it was unclear how the dispute would play out, given the government's need to appear resolute in defending national sovereignty while maintaining its relationship with Washington at a time when US public support for the mission is faltering.

Polls show General David Petraeus' report to Congress and US President George W. Bush's nationally televised address have had little impact on Americans' distaste for the Iraq war and their desire to withdraw US troops.

Gen Petraeus, America's top commander in Iraq, and Ryan Crocker, the top US diplomat here, briefed the British government on Tuesday on their recommendations to keep troop levels high. -- AP