From British Prime Minister Tony Blair’s speech to the Los Angeles World Affairs Council:

The purpose of the provocation that began the conflict [between Israel and Hizbullah] was clear. It was to create chaos, division and bloodshed, to provoke retaliation by Israel that would lead to Arab and Muslim opinion being inflamed, not against those who started the aggression but against those who responded to it.

It is still possible even now to come out of this crisis with a better long-term prospect for the cause of moderation in the Middle East succeeding. But it would be absurd not to face up to the immediate damage to that cause which has been done.

We will continue to do all we can to halt the hostilities. But once that has happened, we must commit ourselves to a complete renaissance of our strategy to defeat those that threaten us. There is an arc of extremism now stretching across the Middle East and touching, with increasing definition, countries far outside that region. To defeat it will need an alliance of moderation, that paints a different future in which Muslim, Jew and Christian; Arab and Western; wealthy and developing nations can make progress in peace and harmony with each other. My argument to you today is this: we will not win the battle against this global extremism unless we win it at the level of values as much as force, unless we show we are even-handed, fair and just in our application of those values to the world.

The point is this. This is war, but of a completely unconventional kind.

9/11 in the US, 7/7 in the UK, 11/3 in Madrid, the countless terrorist attacks in countries as disparate as Indonesia or Algeria, what is now happening in Afghanistan and in Indonesia, the continuing conflict in Lebanon and Palestine, it is all part of the same thing. What are the values that govern the future of the world? Are they those of tolerance, freedom, respect for difference and diversity or those of reaction, division and hatred? My point is that this war can’t be won in a conventional way. It can only be won by showing that our values are stronger, better and more just, more fair than the alternative. Doing this, however, requires us to change dramatically the focus of our policy.

Unless we re-appraise our strategy, unless we revitalise the broader global agenda on poverty, climate change, trade, and in respect of the Middle East, bend every sinew of our will to making peace between Israel and Palestine, we will not win. And this is a battle we must win.

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Whatever the outward manifestation at any one time – in Lebanon, in Gaza, in Iraq and add to that in Afghanistan, in Kashmir, in a host of other nations including now some in Africa – it is a global fight about global values; it is about modernisation, within Islam and outside of it; it is about whether our value system can be shown to be sufficiently robust, true, principled and appealing that it beats theirs. Islamist extremism’s whole strategy is based on a presumed sense of grievance that can motivate people to divide against each other. Our answer has to be a set of values strong enough to unite people with each other.

This is not just about security or military tactics. It is about hearts and minds about inspiring people, persuading them, showing them what our values at their best stand for.

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But we only win people to these positions if our policy is not just about interests but about values, not just about what is necessary but about what is right.

Which brings me to my final reflection about US policy. My advice is: always be in the lead, always at the forefront, always engaged in building alliances, in reaching out, in showing that whereas unilateral action can never be ruled out, it is not the preference.

How we get a sensible, balanced but effective framework to tackle climate change after the Kyoto Protocol expires in 2012 should be an American priority.

America wants a low-carbon economy; it is investing heavily in clean technology; it needs China and India to grow substantially. The world is ready for a new start here. Lead it.

The same is true for the WTO talks, now precariously in the balance; or for Africa, whose poverty is shameful.

If we are championing the cause of development in Africa, it is right in itself but it is also sending the message of moral purpose, that reinforces our value system as credible in all other aspects of policy.

It serves one other objective. There is a risk that the world, after the Cold War, goes back to a global policy based on spheres of influence. Think ahead. Think China, within 20 or 30 years, surely the world’s other super-power. Think Russia and its precious energy reserves. Think India. I believe all of these great emerging powers want a benign relationship with the West. But I also believe that the stronger and more appealing our world-view is, the more it is seen as based not just on power but on justice, the easier it will be for us to shape the future in which Europe and the US will no longer, economically or politically, be transcendant…