UPDATE 1-Al Qaeda leads suspect list in Bhutto killing

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By Randall Mikkelsen

WASHINGTON, Dec 27 (Reuters) - Al Qaeda is the chief suspect in the murder of Pakistani opposition leader Benazir Bhutto, standing to gain by preserving its remote stronghold, undermining President Pervez Musharraf and destabilizing the country, U.S. government and private analysts said.

The militant group, which has rebuilt its command structure on the Pakistan-Afghanistan border, was blamed for a previous attempt on Bhutto and it has denounced her as an instrument of U.S. policy in Pakistan.

Bush administration officials said it was too early to identify a clear suspect in Thursday's assassination.

But one U.S. official said: "There are a number of extremist groups within Pakistan that could have carried out the attack. ... Al Qaeda has got to be one of the groups at the top of this list."

Al Qaeda's Taliban ally, which has publicly threatened Bhutto, was another potential suspect, said the official, who spoke on condition of anonymity.

One private analyst said al Qaeda supporters in Pakistan's security services may have also played a role, but it was unlikely Musharraf himself was involved.

Killing Bhutto undermines Musharraf, viewed by the United States as an essential ally against terrorism, by eliminating the prospect of a power-sharing agreement between the two that could shore up his deteriorating political standing and stabilize the country, the analysts said.