Police in Wolverhampton have evacuated Wolverhampton Central Mosque and a number of surrounding roads as part of a security alert.
Police said a military bomb disposal team is en route.
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They deny any kind of sweetheart deal - but a senior source told ITV News Nissan were in possession of a letter saying just that.
The father of Captain Khan, who died in Iraq in 2004, said the comment was "the most cruel thing you can say to grieving parents."
Little Sophia Williams died in a children's hospital in Edinburgh on June 5.