General Dannatt, who took over as Chief of General Staff in August, told the Daily Mail in an interview that while "I don't say the difficulties we're experiencing around the world are caused by our presence in Iraq, but undoubtedly our presence in Iraq exacerbates them. We are in a Muslim country and Muslims' views of foreigners in their country are quite clear."
The scathing interview by the country's top soldier is likely to send shockwaves through the government led by Prime Minister Tony Blair.
The situation might have been different if Britain had been invited in by the Iraqi people, but "the military campaign we fought in 2003 effectively kicked the door in. Whatever consent we may have had may have turned to tolerance and has largely turned to intolerance," General Dannatt said.
"I think history will show that the planning for what happened after the initial successful war fighting phase was poor, probably based more on optimism than sound planning. The original intention was that we put in place a liberal democracy that was an exemplar for the region, was pro-West and might have a beneficial effect on the balance within the Middle East. Whether that was a sensible or naïve hope history will judge. I don't think we are going to do that. We should aim for a lower ambition," he told the Mail.
He also expressed outrage over reports of injured soldiers recuperating in hospital alongside civilians being harassed by anti-war campaigners, who told them to remove their uniforms.
This was "unacceptable," and the government was in danger of breaking the "covenant" between a nation and its Army, he warned Defence Secretary Des Browne, urging him not to "let the army down."
"It is not acceptable for our casualties to be in mixed
There are 7,200 British troops in Iraq, and 119 have died since the invasion in 2003.
General Dannatt also believed that the consequences of posting British troops in Iraq would be felt at home, where failure to support Christian values is allowing a predatory Islamist vision to take hold, the Mail said.
"When I see the Islamist threat in this country I hope it doesn't make undue progress because there is a moral and spiritual vacuum in this country. Our society has always been embedded in Christian values; once you have pulled the anchor up there is a danger that our society moves with the prevailing wind."
"There is an element of the moral compass spinning. I think it is up to society to realise that is the situation we are in. We can't wish the Islamist challenge to our society away and I believe that the army both in Iraq and Afghanistan and probably wherever we go next, is fighting the foreign dimension of the challenge to our accepted way of life," he said.
"We need to face up to the Islamist threat, to those who act in the name of Islam and in a perverted way try to impose Islam by force on societies that do not wish it. It is said that we live in a post Christian society. I think that is a great shame. The broader Judaic-Christian tradition has underpinned British society. It underpins the British army," the Mail quoted him as saying.
In a terse response last night, Prime Minister Blair's official spokesman said: "It is the Iraqi government that has asked us to stay in Iraq."
