David Cameron attended the unveiling of the report in London
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Failures in Iraq have put the UK at greater risk of terrorist attacks, says Conservative leader David Cameron.
He agreed with a Tory policy group's report that Britons now faced a greater threat than before the war.
Disagreeing with foreign policy did not justify terrorism, but it was just "a statement of fact", he said.
The report calls for a UK national security council to be created to ensure all policies take account of potential impacts at home and abroad.
Mr Cameron said: "I think it is clear that over the last few years decisions that have been taken, the difficulties there have been in Iraq, clearly have had a wider effect.
'Lack of preparation'
"That's not to say for one second that in any way disagreeing with British foreign policy justifies in any way any sort of terrorism - of course it doesn't.
"But it's just, I think, a statement of fact."
The document says foreign and domestic security policy has been hindered by a "lack of balance, lack of careful preparation and lack of coherence".
It calls for a new security council to work with deparments like the Foreign and Home Office, to examine the potential impact "at home and abroad" of every policy.
The National and International Security Policy Group - also warned against the UK being the "mute partner" of the US.
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I agree absolutely we should have no truck with anti-Americanism, we should confront that
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Its criticism of the Iraq invasion may make some Conservatives feel uncomfortable, given the party's support for military action.
But Mr Cameron said: "We need to be America's candid friend, rather than mute partner, but I think there's a lot of work there that needs to be done.
"I agree absolutely we should have no truck with anti-Americanism, we should confront that. But we need to make sure this is a balanced and strong relationship and that it works for Britain."
'Real cheek'
Liberal Democrat foreign affairs spokesman Michael Moore said: "In this new security initiative, the real cheek is for David Cameron to try to distance himself from the Iraq war.
"This will not wash with the British public, who know very well that he and his colleagues followed the Government into the 'yes' lobby."
The report calls for a Middle East strategy with more "humility and patience", while condemning efforts to impose instant change through a "take it or leave it" set of demands.
Dame Pauline Neville-Jones, the policy group's chairman, said she had supported the invasion, but a number of errors had been made.
She is a former head of the joint intelligence committee, which advised ministers in the run-up to the Iraq war.
Dame Pauline said: "What we can't do in future is hang our whole strategy on the military. We must have a policy that's far more diplomatically interested (in) reform of societies."
She believes countries in the Middle East should be shown that they will miss out on benefits if they do not introduce democratic regimes.