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Two people were today believed to have been shot by armed police after hacking a man to death with a machete in front of dozens of eyewitnesses.
Police were tonight treating the incident as a terror attack and Home Secretary Theresa May had called a meeting of the government's emergency cabinet committee Cobra.
The soldier was attacked this knives and meat cleavers while he was wearing a Help for Heroes t-shirt in Woolwich, south-east London.
It is thought that the two men waited around for 20 minutes until police arrived and then tried to attack them - but were swiftly shot by armed officers.
Eyewitnesses said the 'crazed' men launched a ferocious attack and were 'hacking at him, chopping him, cutting him.'
Scene: One man died at the scene here in John Wilson Street, south London this afternoon while two were seriously injured
Two men were rushed to hospital this afternoon while another man died after apparently being hacked to death in Woolwich
Prime Minister David Cameron wrote on Twitter that 'the killing in Woolwich is truly shocking - I have asked the Home Secretary to chair a COBRA meeting.'
This afternoon the areaâs MP, Nick Raynsford, told BBC Radio 5 Live he believed the victim of the attack was a serving soldier.
The man is believed to have been hacked to death after a car crash. The scene of the attack is just 200 yards from Woolwich Barracks.
Mr Raynsford said: 'The circumstances causing the incident are not yet clear. It's been suggested it was the product of a road traffic accident, but that's pure speculation.
'We think a serving soldier was the victim. We don't know the circumstances surrounding the incident.
'We do know a number of weapons have been seized. They include a gun, various knives, and a machete, apparently.
'The police clearly had to take action in order to try and arrest these individuals.'
The Independent Police Complaints Commission, which is called in whenever firearms officers shoot people, said it is investigating.
The Ministry of Defence said it was urgently looking at the reports that the incident involved a soldier but had no further comment.
Investigation: An air ambulance can be seen at the scene which is cordoned off after a soldier was hacked to death this afternoon
Probe: The incident is believed to have started after this car crashed. Fluid can be seen which has leaked from the car
Weapons: Forensic experts bag up evidence at the scene which is believed to include a number of weapons
Footage from a television news helicopter showed a large collection of weapons lying in the street in Woolwich following the incident.
A spokesman for the London Ambulance Service said one man had died at the scene.
He said: 'Our staff treated two others. Both men were taken to hospital, one of them is in a serious condition, the other is not.'
One witness, identified as James, said he and his partner saw two black men attack the young victim with knives, including a meat cleaver.
'They were hacking at this poor guy, literally,' he told LBC. 'They were hacking at him, chopping him, cutting him.'
Fighting back tears, James said the men treated their victim as a 'piece of meat' after he was dead.
'These two guys were crazed,' he told the radio station. 'They were just animals. They dragged him from the pavement and dumped his body in the middle of the road and left his body there.'
The incident occurred near the Royal Artillery Barracks, adjacent to Woolwich Common, the historical home of the Royal Artillery.
The barracks, also known as the Woolwich station, now houses a number of the King's Troop Royal Horse Artillery and independent companies of the Grenadier and Coldstream Guards.
Woolwich Common remains a designated military training area. The shooting events at the 2012 Summer Olympics and Paralympics were held at a temporary venue at the Barracks.
Luke Huseyin, 32, who lives in a block of flats on John Wilson Street, Woolwich, close to where the incident happened said he watched two men murder a man before being shot.
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