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Mr. Charles Kennedy (Ross, Skye and Inverness, West) (LD): I echo the very proper expressions of condolence to our own forces and those of other countries, and increasingly to those civilians from countries around the world who are assisting in the rebuilding of Iraq and are now the focus of attack, and to the innocent Iraqis who continue to lose their lives in significant numbers.

We agree with the Prime Minister that, whatever differences have preceded the position in which we find ourselves today, it is clear that the skill, bravery and sheer professionalism of the British forces should continue to be deployed to achieve the end that everyone wants to see—a stable and secure Iraq, for its own sake and the sake of its people and in the interests of the most difficult region in the world.

The Prime Minister's discussions with the President took place against three very troubling backdrops. The first was what many of us regarded as the excessive military force being used by the Americans, especially in Fallujah. The second was the continuing political uncertainty for the people who want to see the transition, as we do—we agree that we should adhere to the June deadline—and who want to have that signal reinforced; it is welcome that it should be reinforced within Iraq. The third was the fact that the discussions were preceded by another deeply worrying act of unilateralism by the Bush Administration vis-à-vis the Prime Minister of Israel, which called into question many of the assumptions that this Government, with all-party support, have held dear and integral to the road map process and to existing UN Security Council resolutions.

Watching the events of last week and listening to what the President was saying in his press conferences with the Prime Minister, many of us had a nagging doubt about the extent to which the President, although he
 
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undoubtedly gave the appearance of listening with great courtesy to the Prime Minister, actually chose to hear what we hope the Prime Minister was trying to get across in the course of the talks.

It is undoubtedly welcome news that there is to be an increased role for the United Nations in Iraq. The current lack of legitimacy stems from the sidelining of the UN during the conflict. Will the Prime Minister acknowledge, however, that following the very dismissive terms in which many in and around the American Administration have spoken publicly about the UN, the warmer words that are now coming into play will have to be matched by deeds if they are to win the confidence of the international community? Perhaps he has already made that point to the President. The Prime Minister says that the UN will continue its present dialogue, and that he is encouraged by the efforts of Mr. Brahimi, as we must all be; but is he satisfied that the Americans will give the level of input that is so crucially required?

Does the Prime Minister recognise that it might not be right to class everyone—as he and the President have—who is being driven into the hands of those whom he rightly describes as the terrorists and fanatics as being, by definition, terrorists and fanatics themselves? We saw what happened to those hundreds of women and children in Fallujah last week. They were not terrorists or fanatics, but when they see what is happening to their own domestic circumstances, the real tragedy is that some of the wilder elements get driven in the direction of the terrorists and fanatics. The Americans must surely understand that.

As for the wider middle east peace process—[Interruption.]

Mr. Speaker: Order. The right hon. Gentleman must be heard. This is unfair.

Mr. Kennedy: Thank you, Mr. Speaker.

Will the Prime Minister confirm what his Foreign Secretary has said over the past few days—that the Israeli policy of targeted assassination is both unlawful and unjustified, and also counterproductive? Are the British Government making direct representations to the Israelis to that effect?

In his statement, the Prime Minister said that the new position adopted by the Israelis and the Americans was a first step—the beginning of a new phase in the process. Mr. Sharon, however—both on the plane home to Israel and since arriving in his own country—has given every indication of seeing it as not a first but a final step. What will our position be in the light of that?

Perhaps the Prime Minister will confirm or contradict this. We have heard that, during the build-up to the original decision to mount the war in Iraq, the Americans gave him the option of not participating. At the time, I asked him repeatedly whether he could envisage circumstances in which this country would not participate in unilateral action with the Americans but without UN sanction. He did not answer then. Will he now at least tell us whether the Americans made that option explicitly open to him?

The Prime Minister: I find that last point somewhat extraordinary. Of course we always have the option of
 
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participating or not participating. We had to make a decision, and we actually made it finally in this House. We decided that we would participate. I have never made any secret of my belief that it was right that our troops were there. I do not think that that was ever secret.

Let me deal with the right hon. Gentleman's other two points. I welcome what he said about the UK forces, which I consider right and responsible. Whatever differences there are over the war, it is right that we continue to deploy those forces and see this through. It must now be in everyone's interests to get Iraq resolved in the right way.

I do not accept that we have ever wanted to sideline the UN. We made copious efforts to get the UN to back a final ultimatum to Saddam. We had already secured its backing, in resolution 1441, for a demand that Saddam comply and comply fully with what it said. Since then there have been no fewer than three further UN resolutions. The President and I agree that we should seek another resolution to put all issues connected with political and security measures in context and carry them through.

I have not said that everyone who is angry about whatever action is being taken is a terrorist and a fanatic. There is no doubt, however, that those driving what is happening in Fallujah are terrorists and fanatics. I agree with the right hon. Gentleman that we must ensure that they cannot draw in other people.

What happened in Fallujah arose from the brutal murder of civilian contractors, which was carried out in a particularly horrific way. I hope that, given the engagement of local leaders and the talks taking place between them, the Americans and other leaders from the Iraqi governing council, it will be possible to resolve the situation peacefully. We must, however, also state definitively—because this will be important for the new Iraq that we want to create—that we cannot allow a situation in which outside terrorists, clerics with their own militias or heavily armed gangs of insurgents try to run the country. That has been the tragedy of Iraq for many decades. It is surely right to say to all those people "If you have a particular point of view, stand in the elections. You must not try to get your way by means of violence when you cannot do so democratically."

In respect of the middle east peace process, of course I confirm what my right hon. Friend the Foreign Secretary has said during the past few days about targeted assassinations. However, on the point about whether Mr. Sharon sees this step as a first or a final one—in the course of his press conference he also reaffirmed his support for the road map—I would simply say that despite the anger at statements made on the right of return for refugees and on settlements, which I understand, there is still an opportunity. From my conversations with European leaders at the weekend, I think that people recognise that, which is why the European Union statement welcomed the disengagement from Gaza and parts of the west bank.

Of course this should not be a final step; of course it is not a final settlement. However, my point, very simply, is that it must be better than what we have now to have at least some disengagement from the occupied territory, provided that that disengagement is followed by active measures, supported by the international
 
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community, to give the Palestinians the economic and political strength and the security needed for the idea of a viable Palestinian state to become a realistic possibility. It cannot be right that we simply have disengagement, then allow a vacuum to develop. That is all that I am saying, and when people reflect on it they will see that whatever their anger about unilateral statements on the right of return for refugees and on settlements, it is still better to try to make something of this offer of disengagement—or this strategy of disengagement—than to do nothing.

Mr. Gerald Kaufman (Manchester, Gorton) (Lab): Will my right hon. Friend reconfirm, in specific terms, that the policy of Her Majesty's Government, in accordance with United Nations Security Council resolution 446 and other UN Security Council resolutions, is that all 200 Israeli settlements on occupied Palestinian territory are illegal and must be removed? Will he also reconfirm that the wall being built by the Israelis, biting deep into Palestinian territory and separating farmers from their land, workers from their jobs, pupils and students from their schools and universities, and sick people from their hospitals, is also illegal and must be removed?

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