Two large suicide explosions have rocked a British cultural centre in the Afghan capital Kabul on a public holiday marking Afghanistan's independence from Britain in 1919.
The explosions, claimed by the Taliban, struck at the British Council offices in Kabul and witnesses reported that heavy gunfire was ongoing inside the compound. A third blast was heard later, but its cause was unclear.
The British Council is an official organization part-funded by London that promotes cultural relations in offices around the world.
The full extent of the casualty toll was not immediately clear but Kabul police spokesman Hashmat Stanikzai said initial reports indicated that three or four people were wounded. Kabul police later said that three people had died, but their nationalities have not been released.
"(There were) two explosions at the British Council but at this stage, we're still gathering facts," said Major Jason Waggoner, a spokesman for the NATO-led International Security Assistance Force (ISAF).
He could not say whether ISAF forces were providing assistance but an AFP reporter at the scene saw two large ISAF armored vehicles arriving at the scene as gunfire intensified.
A spokesman for the British embassy in Kabul said: "I can confirm reports of an attack against the British Council compound in Kabul."
He added that the embassy was in contact with Afghan authorities at the scene but could not provide any information on casualties.
Afghan police said that suicide bombers had struck at the scene.
"There have been two suicide explosions. My boys are engaged. I will give more information later," Kabul police chief Ayub Salangi said after an AFP reporter and witnesses reported hearing blasts and gunfire.
Witnesses on the scene said that the compound was surrounded by Afghan police and intelligence officers. Heavy machine gun fire could be heard from inside and occasional explosions.
Security officials said several attackers were holed up inside.
Several wounded were dragged from the compound including at least one Gurkha guard.
Taliban spokesman Zabihullah Mujahid claimed the militant group leading a 10-year insurgency in Afghanistan was responsible for the attack.
"Taliban mujahedeen stormed these two compounds and heavy fighting is going on with the Afghan police," he said.
"Today is our independence day from Britain. They recognized our independence 92 years ago - today's attack was marking that day.
"Now the British have invaded our country again and they will recognize our independence day again."
Residents were evacuated from the area surrounding the offices.
"I was asleep when the sound of a heavy explosion woke me up," said Mohammad Aber, who lives over the road from the building.
"I went to the roof. I saw a car was on fire, and there was suddenly a second explosion, then the shooting started."
Britain is the second-largest provider of troops to the international military effort in Afghanistan after the United States, with around 9,500 forces mainly in the south.
Suicide attackers have stormed the British Council office in the Afghan capital, Kabul, killing at least eight people and taking over the compound.
After a suicide car bomb destroyed the compound wall, a number of heavily armed men forced their way inside.
Gunfire can still be heard in the area, which was rocked by another explosion several hours after the attack began.
The Taliban said the attack marked the anniversary of Afghanistan's independence from the UK in 1919.
A UK Foreign Office spokeswoman later said: "We can confirm there was an attack against a British Council compound in Afghanistan.
"The embassy is co-ordinating with the Afghan authorities, who are dealing with the incident."
The eight victims of the attack were all thought to be Afghan policemen, authorities said, adding that four attackers have also died.
The BBC's Quentin Sommerville in Kabul reports that occupants of the British Council building may have taken refuge in a reinforced safe room in the compound, to await rescue.
Wall collapsed
It was a three-phase attack, intelligence sources told the BBC: First, a suicide attacker detonated his explosive vest at a main square in western Kabul where police were guarding a key intersection shortly after 05:30 (01:30 GMT). Ten minutes later, a suicide car bomber detonated his vehicle outside the front gate of the British Council.
This is not the first time a major attack has taken place on Afghanistan's Independence Day.
Despite increased security, the insurgents managed to get into Kabul with a lot of weapons and suicide vests.
Local shopkeepers say as many as nine heavily armed attackers stormed the British Council building.
The area was evacuated, and for the next three hours heavily armed insurgents exchanged fire with police and sporadic gunfire can still be heard in the area, residents say.
Last night, I accompanied Kabul's police chief, General Ayub Salangi, on a patrol of the city ahead of Independence Day. At around midnight, the general deployed extra security forces in several locations, as intelligence reports warned of an imminent attack.
As the area was evacuated, local shopkeepers say as many as nine suicide attackers armed with rocket-propelled grenades, heavy machine guns and AK 47s started firing as they ran towards the British Council building.
They have exchanged fire with police for hours and sporadic gunfire can still be heard in the area, residents say, with one gunman still believed be holding out.
Police sources earlier told the BBC they believed "eight or nine suicide attackers" had entered the British Council building.
"They have brought enough weapons to fight for a day," police said.
British forces arrived at the scene shortly after the attack and Afghan police were providing support, Kabul officials told the BBC.
One of the walls of the compound collapsed after the blasts, and there are fears that a number of Afghan policemen may be buried in the rubble.
The British Council is a partly government-funded agency which runs mainly cultural programs.
The Afghan authorities earlier stepped up security in the capital, amid fears an attack could be imminent on the public holiday.
However, the Taliban have recently shown that they can strike pretty much anywhere in Afghanistan, reports the BBC's Quentin Sommerville in Kabul.
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