The president of the Liberal Democrats has issued a strong appeal against making ethnic minority communities scapegoats for the terrorist attacks by Islamic fundamentalists in America.

Addressing his party's conference in Bournemouth, Lord Dholakia called on the government, other political parties and the media "so as not to inflamerace and community relations" in their responses to the attacks.

"The civilised world has an added responsibility at a time when revenge sees no difference between perpetrators abroad and the law abiding minorities settled here. It will require leadership at every level to ensure that the law abiding visible minorities are not made the scapegoats simply because the enemy is invisible," he said.

The speech included a strong attack on the Conservatives for their contribution to the debate on asylum, which has, says Lord Dholakia, downgraded minorities "as bogus and as cheats".

"We have seen right across Europe and in other parts of the world an upsurge of racism, intolerance, bigotry and narrow nationalism," he warned. "Xenophobia does not flourish in a vacuum. They occur within our political system where political leaders receive standing ovations when they downgradeour minorities as bogus and as cheats."

Lord Dholakia will also link immigration and asylum issues to the global economy, saying they are "two sides of the same coin". He will point to poverty as a key issue.

"Half of the six billion people on earth live on less than a pound a day. Another two billion are poor, but are making some progress. It is not only a moral dilemma to have so many people in poverty, but it may also turn out to be dangerous and destablising," he warned.

"It is no good trying to control the flow of refugees and asylum seekers, when in reality such outcomes are the direct result of our actions" the conference delegates heard.