As a result of this operation, which is now complete the Iraqi Forces now have the primary role for security in most parts of the city. It is still a difficult and sometimes dangerous place. But, many extremists have been arrested or left the city. The reported levels of murder and kidnapping are significantly down. Surveys of Basrawis, after the Operations had been conducted, show a much greater sense of security. There is reconstruction now happening in schools and health centres, around 300 projects altogether.
A few days ago, DPM Barham Saleh organised the Basra Development Forum. He announced a $200 million programme of development in infrastructure and public services. In addition, the international community - with Britain in the lead - has developed projects to increase power supply, put in place proper sewage systems, and increased the supply of drinking water to thousands of homes. The plan to develop Basra port will be published later this year. The problems remain formidable, not least in providing work where for decades, 50 per cent or more of the city has been unemployed.
In an extraordinary development, the Marsh Arabs, driven from one of the world's foremost ecological sites by Saddam, have been able to re-settle there.
What all of this means is not that Basra is how we want it to be. But it does mean that the next chapter in Basra's history can be written by Iraqis.
I have discussed this with Prime Minister Maliki and our proposals have his full support and indeed represent his wishes.
Already we have handed over prime responsibility for security to the Iraqi authorities in Al Muthanna and Dhi Qar. Now in Basra, over the coming months, we will transfer more of the responsibility directly to Iraqis. None of this will mean a diminution in our combat capability. The actual reduction in Forces will be from the present 7,100 - itself down from over 9,000 two years ago and 40,000 at the time of the conflict - to roughly 5,500. However, with the exception of Forces which will remain at Basra Palace the British Forces will be located at Basra Air Base and be in a support role. They will transfer Shaibah Logistics Base, the Old State Building and the Shaat Al'Arab Hotel to full Iraqi control.
The British Forces that remain in Iraq will have the following tasks
* training and support to Iraqi Forces * securing the Iraq/Iran border * securing supply routes
and, above all, the ability to conduct operations against extremist groups and be there in support of the Iraq Army when called upon.
Over time and depending naturally on progress and the capability of the ISF, we will be able to draw down further, possibly to below 5,000 once the Basra Palace site has been transferred to the Iraqis in late summer. We hope that Maysan Province can be transferred to full Iraqi control in the next few months and Basra in the second half of the year. The UK military presence will continue into 2008, for as long as we are wanted and have a job to do. Increasingly our role will be support and training, and our numbers will be able to reduce accordingly.
Throughout MND(South East), the UK depends on the steadfastness of our coalition partners - Denmark, Australia, Romania, the Czech Republic and Lithuania. I pay tribute to them. I welcome the continuing Australian role at Tallil in Dhi Qar province. We are keeping in close touch with our allies as the transition proceeds.
The speed at which this happens depends, of course, in part on what we do, what the Iraqi authorities themselves do; but also on the attitude of those we are, together, fighting. Their claim to be fighting for the liberation of their country is a palpable lie. They know perfectly well that if they stopped the terror, agreed to let the UN democratic process work and allowed the natural talent and wealth of the country to emerge, Iraq would prosper. We would be able to leave. It is precisely their intent to eliminate such a possibility.
In truth, this is part of a wider struggle taking place across the region. The Middle East is facing an epochal struggle between the forces of progress and the forces of reaction.
The same elements of extremism trying to submerge Iraq - or Afghanistan for that matter - are the same elements that across the region, stand in the way of a different and better future. None of this absolves us from responsibility. In fact, for too long, we believed that provided regimes were "on our side", what they did to their own people was their own business. We must never forget that Saddam inflicted one million casualties in the Iran-Iraq war and butchered hundreds of thousands of his citizens, including, by chemical weapons attack, wiping out whole villages of people.
We need now to recognise that the spread of greater freedom, democracy and justice to the region is the best guarantee of our future security as well as the region's prosperity. That is why peace between Israel and Palestine is not an issue inhabiting a different domain of policy. It is a crucial part of the whole piece. I shall meet President Abbas later today, talk to Prime Minister Olmert, and within the last 24 hours have had detailed discussions both with President Bush and Secretary Rice. I will once again emphasise the importance of basing the proposed NUG on the Principles of the Quartet. I will also stress our complete and total determination to use the new opportunity to create the chance for peace.
I have always been a supporter of the State of Israel. I will always remain so. But for the sake of Israel as well as for all we want to achieve in the Middle East, we need a proper, well functioning, independent and viable State of Palestine.
We should support all those across the region who are treading the path of progress - from the Government of Lebanon, whose Prime Minister courageously holds firm to democracy, to those countries and there are many, who are taking the first fledgling steps to a different and more democratic governance.
As for Iran and Syria, they should not be treated as if the same. There is evidence recently that Syria has realised the threat Al Qaida poses and is acting against it. But its intentions towards Iraq remain ambiguous and towards Lebanon hostile.
The statements emanating from Iran are contradictory, but as the words yesterday of the head of the IAEA indicate, their nuclear weapons ambitions appear to continue. But both countries - though very different - have a clear choice: work with the international community or defy it. They can support peace in Palestine, democracy in Lebanon, the elected Government of Iraq - in which case they will find us willing to respond; or they can undermine every chance of progress, uniting with the worst and most violent elements, in which case they will become increasingly isolated, politically and economically.
But what nobody should doubt is that whatever the debates about tactics, the strategy is clear: to bring about enduring change in the Middle East as an indispensable part of our own enduring security. The poisonous ideology that erupted after 9/11 has its roots there, and is still nurtured and supported there. It has chosen Iraq as the battleground. Defeating it is essential. Essential for Iraq.
But also, now, for us here in our own country. Self-evidently the challenge is enormous. It is the purpose of our enemies to make it so. But our purpose in the face of their threat, should be to stand up to them, to make it clear that however arduous the challenge the values that they represent will not win and the values we represent, will.