THE British Army expressed “regret” last night for its controversial raid on an Iraqi police station to free two SAS soldiers last month.

It offered to pay legitimate compensation for casualties and damage caused during the September 19 raid in Basra and undertook to “deal with” British troops involved in the raid if they are found to have transgressed. It also promised to try to avoid any repetition of the dramatic events of that day, which caused a serious rift with local Iraqi leaders.

The carefully worded statement fell short of a formal apology. “The word ‘apology’ does not appear,” William Patey, the British Ambassador, insisted to The Times. But it contrasted starkly with the robust defence mounted by ministers and senior commanders in the immediate aftermath of the raid.

The climbdown was widely seen as an attempt to restore relations with the local authorities before the British mission in the south is further undermined, and came just four days before Saturday’s crucial referendum on Iraq’s new constitution.

The raid was mounted after the two undercover soldiers were arrested by Iraqi police and passed on to a Shia militia. British troops used armoured vehicles to storm the Jameat police station compound, demolishing perimeter walls and buildings inside. The Iraqis claim seven people were killed during day-long demonstrations, though that has not been proven.

Mr Patey agreed last night’s surprise statement with Muhammad Musbih al-Waili, the Governor of Basra, who reflected the anger of the Iraqi authorities at the raid by withdrawing co-operation with the British.

“We regret the incidents that took place in Basra on 19 September,” it said. “We also regret the casualties on both sides and the material damage to public facilities.”

It continued: “The British Government is prepared to pay valid claims for compensation for casualties and material damage in the well-established manner.”

The Government would also “deal with those connected to the events in accordance with CPA order 17”, which sets out how complaints against British Forces in Iraq should be handled. The British Military Police are investigating the raid, but it is too early to say whether disciplinary action will be taken.

The statement concluded: “We hope to avoid a repetition of such incidents,” and expressed full support for the “dignity of the institutions and people of the Governorate of Basra and the sovereignty of Iraq”.

The statement was at odds with the initial stance of British ministers and military leaders. Hours after the raid John Reid, the Defence Minister, insisted the Army’s actions had been “absolutely right” and declared: “When it is necessary to protect British servicemen, we will take that action. And by God it was effective.” Brigadier John Lorimer, the British commander in Basra, insisted that his forces “won’t hesitate” to act against those endangering coalition troops.

But General Sir Mike Jackson, the Chief of the General Staff who is visiting Iraq, told The Times last night: “Let me make it clear that it was important to retrieve those two soldiers. The British Army looks after its own.” Majed al-Sari, adviser to Iraq’s Minister of Defence, said: “It is part of the British efforts to make the referendum successful in Basra on October 15. It is a concession to win the hearts of the Basra people, due to the error they committed. What they did was the behaviour of occupiers. They had to change this, the apology is part of changing this image.”

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