US President George W Bush has said the devastation in Bali shows there is a long way to go in the war on terror.
Mr Bush said the attack, together with last week’s bombing of a French oil tanker and the killing of a US marine in Kuwait, seems to indicate that the “enemy is once again trying to frighten and kill freedom-loving people”.
Mr Bush said this would not deflect from his effort to make Saddam Hussein disarm. He said that this goal was now part of the war on terror.
The US President said he did not know if Osama Bin Laden was still alive but he said al Qaeda is still dangerous.
"Evidence of al-Qaeda involvement"
Australia and Indonesia say they have information that the al-Qaeda terrorist network was behind Saturday's bomb blast at a nightclub in Bali, in which at least 190 people were killed.
Australia's Foreign Minister, Alexander Downer, said his information came from Indonesian sources.
Most of the victims were foreign tourists, many of them Australian. It is thought 33 Britons are among the dead.
Indonesian President under pressure
Indonesia's President, Megawati Sukarnoputri, has been under mounting domestic and international pressure to clamp down on Islamic radicals in the wake of the bomb attack.
The United States ambassador to Indonesia said Washington had recently warned the authorities in Jakarta about the risk of a major terrorist attack.
The United Nations Secretary General, Kofi Annan, said the attack could not be justified by any cause or ideology.
The American State Department has urged all US citizens in Indonesia to leave the country and has ordered the departure of non-emergency American government personnel from there.
The European Commission president, Romano Prodi, has pledged that the EU will continue to help fight terrorism. He offered condolences to Indonesian President Megawati Sukarnoputri and the families of the victims.
Thousands of tourists leaving Bali
Thousands of foreign tourists have been leaving Bali in the aftermath of Saturday night's bomb attack.
Several regional airlines have arranged special flights from the island as visitors cut short their holidays.
But some foreigners have stayed behind to help the local authorities deal with the casualties and the search for victims and survivors.
National day of mourning in Australia
A national day of mourning has been declared in Australia and the government is to review security at airports, embassies and other potential targets in the aftermath of the attack.
Australian police and intelligence officers have travelled to Bali to help investigate the atrocity. At least 15 Australians were among the dead and more than 200 are unaccounted for.
Eleven Britons have been killed, and 16 are unaccounted for. The list of victims also includes nationals from Indonesia, the United States, France, Germany, South Korea, Singapore, Ecuador and Sweden.
Two Irish people injured in blast
It has emerged that the survivors include seven Irish holidaymakers who had arranged to meet outside the nightclub.
Two of the group, Niamh Holohan, from Abbey, near Loughrea, County Galway, and Keith Haslam, from Castleknock in Dublin, were seriously injured. The pair are now recovering in hospital in Singapore.
They had flown to Bali for a holiday with a friend, Sara Jane Hannon, from Ennis, County Clare, and had arranged to meet four other friends at the nightclub.
Ms Holohan's parents said they believed the group of seven had either been queuing outside the club or had just entered at the time of the blast.
Frances Holohan told RTE News they were deeply shocked but were thankful that Niamh had survived the blast. Mrs Holohan said her daughter had suffered burns and fractures and was now in intensive care at Singapore General Hospital.
The Department of Foreign Affairs is advising Irish citizens against travelling to Bali.