A senior committee of MPs has said the UK risks losing credibility in Iraq if the security situation there does not improve soon.

In a wide-ranging report on the foreign policy aspects of the war on terrorism, published on Thursday, the Commons foreign affairs committee expressed broad support for the government's stance.

But concern was voiced in a number of areas including Iraq, Afghanistan and the consequences for the Middle East peace process.

While not blaming either London or Washington, the MPs said there is an "insufficient number of troops in Iraq".

"The failure of countries other than the US and United Kingdom to send significant numbers of troops has had serious and regrettable consequences," the committee found.

The shortage of forces has created a law and order "vacuum" in parts of Iraq, which had turned the country into a "battle ground" for terrorists such as al Qaeda.

The committee argued that the standard of living and provision of basic public services following the war to overthrow Saddam Hussein last year "is not yet satisfactory".

"The failure to meet Iraqi expectations, whether realistic or not, risks damaging the credibility of the United Kingdom in Iraq and Iraqi goodwill towards it," the report said.

Security

The committee warned that Iraq's own army and police remain "a long way from being able to maintain security".

"We conclude that the violence in Iraq stems from a number of sources, including members of the former regime, local Islamists, criminal gangs and al Qaeda. Iraq has become a battle ground for al Qaeda, with appalling consequences for the Iraqi people," it said.

"We conclude that the alternative to a positive outcome in Iraq may be a failed state and regional instability.

"It is therefore of the utmost importance that current problems are resolved in favour of the forces of order and that those who seek to impede Iraq's transition to a free and democratic state are defeated."

Concerns were also expressed at the lack of regulation of private military and security companies operating in Iraq, reports of irregularities in the handling of the Development Fund in the country and the failure of the armed forces to pass on reports of human rights violations by British personnel to Foreign Office officials.

Afghanistan

On Afghanistan, where a larger international coalition overthrew the Taliban regime in 2001 because of its support for al Qaeda, the MPs point to the successes of British troops in keeping the peace.

However the committee said several serious challenges still remain in the rebuilding of the country.

And there was a warning that without more NATO troops being sent to the country, there was a risk it could "implode with terrible consequences".

"We recommend that the government impress upon its NATO allies the need to deliver on their promises to help Afghanistan before it is too late, both for the credibility of the alliance and, more importantly, for the people of Afghanistan."

The problem of drugs remains rampant, the report also concluded.

"There is little, if any, sign of the war on drugs being won, and every indication that the situation is likely to deteriorate, at least in the short term," it said.

The MPs called on the government to explain "exactly how it proposes to meet the targets of reducing opium poppy cultivation by 75 per cent by 2008, and eradicating it completely by 2013".

Warlords remain in control of large parts of Afghanistan, the committee added.

"The most urgent and pressing need for Afghanistan is to achieve disarmament, demobilisation and reintegration," the report said.

And it pressed the international community to offer more than "fine communiques and ringing declarations".

They are "no substitute for delivery of forces and equipment which Afghanistan needs on the ground" the MPs said.

Middle East

Despite the prime minister promising that a by-product of the war in Iraq would be progress in the Israeli-Palestinian conflict, the committee concluded that the "road map" to peace is "stalled, possibly fatally".

"We further conclude that there is little likelihood of the two parties reaching a negotiated settlement of their own accord in the short term, and that time is fast running out for a viable two-state solution to be achieved," the MPs said.

The report recommended that the UK press the Bush administration to "send a high-level emissary to the Middle East" to kick-start the peace process as a matter of urgency.

And Britain was urged play a role despite "Israel's mistrust of European policy in the region".