Iraq's interim Prime Minister Iyad Allawi on Thursday vowed to defeat terrorism in the war-torn country, saying he will form new security service to face in surgency.

The new security service named as the General Security Directorate, "will defeat those terrorists groups, God willing, "Allawi told reporters in a news conference.

The new security service appears another step in his government's efforts to tackle the violence and insurgency in Iraq.

"We are determined to bring down all the hurdles that stand in the way of our democracy... terrorism will be terminated, God willing," Allawi said.

Allawi was speaking hours after a car bomb attack in a northwestern town killed 10 people and wounded at least 30 others.

On Wednesday, a suicide car bomb in Baghdad killed 11 Iraqis near the entrance to the so-called the Green Zone in central Baghdad. 

(Xinhua News Agency July 16, 2004)