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Last Updated: Tuesday, 11 October 2005, 19:39 GMT 20:39 UK
Full text: Basra damage statement
British military vehicle on fire
The UK government has offered compensation for the damage
The British consulate and a committee of Basra's council have issued a statement announcing compensation for the casualties and damage caused in Iraq when two British undercover soldiers were freed.

Below is the statement in full.

We regret the incidents that took place in Basra on 19 September 2005 at the Serious Crimes Unit. We also regret the casualties on both sides and the material damage to public facilities.

The British Government is prepared to pay valid claims for compensation for casualties and material damage in the well-established manner. We fully support the dignity of the institutions and people of the Governorate of Basra and the sovereignty of Iraq.

The British Government will deal with those connected to the events in accordance with CPA order 17. This incident and other shooting incidents are subject to stringent official review. We hope to avoid a repetition of such incidents.

Frank dialogue between British representatives and the representatives of the local Government elected by the people of Basra is key to co-operation in regard to the reconstruction of Basra and in making the necessary security arrangements for achieving the democratic process in Iraq.

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