UPDATE 1-Aqua Dots head parade of further US toy recalls

(Recasts with Aqua Dots recall)

By Karey Wutkowski and Julie Vorman

WASHINGTON, Nov 7 (Reuters) - About 4.2 million Chinese-made Aqua Dots toys were recalled for possibly containing a "date rape" drug, U.S. safety officials said on Wednesday after earlier announcing another batch of toy recalls for unacceptably high levels of lead.

The U.S. Consumer Product Safety Commission (CPSC) said the Aqua Dots craft toys include a chemical, 1,4 butanediol, on their beads which, if swallowed, can turn toxic and cause unconsciousness, respiratory depression, or seizures.

The Aqua Dots toys made Wal-Mart Stores Inc's (WMT.N) list of top 12 Christmas toys and have been sold at major U.S. retail stores since April for between $17 and $30.

Australian officials issued a nation-wide ban on a similar toy after three children were hospitalized.

Also on Wednesday, the CPSC issued recalls for about 403,000 toys with paint containing excessive levels of lead, including 380,000 toy cars sold at Dollar General stores.

Other warnings were for Dizzy Ducks music boxes, Winnie-the-Pooh spinning tops, "Big Red" wagons, Dragster and Funny Car toys, and Duck Family collectible wind-up toys, all because of paint with unsafe levels of lead.

Recalls involving millions of mostly Chinese-made toys, the majority over lead in their paint, have alarmed American consumers in recent months. Lead is toxic and can pose serious health risks to children, including brain damage.

No injuries were reported in Wednesday's lead-related recalls but a CPSC spokesman said the agency had two reports of American children who swallowed the Aqua Dots beads and became unconscious. The children, who were hospitalized, have since recovered.

It urged consumers to take away the Aqua Dots toys from their children and look for any stray beads that may have fallen out of the craft kits.

The toy is distributed in North America by Spin Master, Ltd a Toronto company, which said it had recalled Aqua Dots from Canadian retail stores as well.

Australia announced a nationwide ban on about 1 million of the toys after investigations showed they contained 1,4 butanediol, which when swallowed metabolizes into a date-rape drug.

Three Australian children became severely ill after they swallowed beads from the toy, sold there as "Bindeez." The toy was named Australia's 2007 Toy of the Year.

U.S. lawmakers have proposed legislation that would virtually ban lead in toys and give the product safety agency more funding for testing, recalls and enforcement. They have also criticized the safety agency's acting chairman, Nancy Nord, for accepting industry-funded trips.

The toy cars recalled Wednesday were sold at Dollar General retail stores from April through October this year for about $1 per pack of two or four cars. Consumers should return the toy cars to a Dollar General store for a refund.