(Updates with U.S. paragraph 8) By Stephanie Nebehay GENEVA, Nov 7 (Reuters) - United Nations Secretary-General Kofi Annan on Tuesday called for a freeze on the use of cluster bombs in or near populated areas, saying they had "atrocious, inhumane effects" on civilians. Debate over the use of the weapon has intensified after Israel dropped them on southern Lebanon in its month-long war against the Islamist Hezbollah militia this year. "I call on you to freeze the use of cluster munitions against military assets located in or near populated areas. At the same time, we should all remember that placing military assets in such areas is illegal under international humanitarian law," Annan said. In a speech read out on his behalf at the start of an international arms control review conference, Annan also called for freezing "the transfer of those cluster munitions that are known to be inaccurate and unreliable". Cluster bombs burst into bomblets and spread out near the ground. While some aim to destroy tanks, others are designed to kill infantry soldiers over a wide area. Unexploded bomblets can pose a risk to civilians for years after a conflict has ended. Children are seen as especially vulnerable as they do not know the threat the bomblets pose. Cluster bombs are not banned, but some humanitarian agencies say they should be because they cause too many civilian casualties. Belgium is the only country to have banned their production and use. The United States on Tuesday reiterated its long-standing position that restricting cluster bombs could result in using weapons that cause greater human suffering and physical damage. TICKING TIMEBOMB "UNICEF hopes that these and other forums will raise worldwide awareness of an issue that is quite literally a ticking timebomb for children," UNICEF spokesman Michael Bociurkiw told a news briefing on Tuesday. Five of the 16 people killed by unexploded ordnance in Lebanon since the Aug 14 truce were children, he said. The toll is feared to rise as families go into their fields to harvest olives and other crops, he added. Hezbollah also used cluster munitions, which can be either deployed by rockets or dropped from planes, but on a far smaller scale than Israel. According to Handicap International, civilians have made up almost all the victims of cluster bombs over the last three decades. More than a quarter of the victims were children. The Genenva talks will review a 1980 treaty on Certain Conventional Weapons, ratified by 100 countries, which bars or limits the use of arms which are indiscriminately harmful. The issue of cluster bombs is expected to be debated, with some countries calling for action, but no decision is expected to be taken at the 10-day meeting, diplomats said. Annan's demand that the munitions not be used in populated areas echoed a call by the International Committee of the Red Cross (ICRC) which also on Monday urged the destruction of stocks of inaccurate or unreliable munitions.