The full speech by the prime minister at the Welsh Labour Party conference

"Let me state again why I believe we must confront the threat of weapons of mass destruction and international terrorism.

Two things we know and can agree upon. The terrorists have not given up. Their centre in Afghanistan is disrupted and destroyed. But their cells in every major nation, in every part of Europe remain intact and malign.

Their demands are un-negotiable, their intent the maximum death and damage they can cause in pursuit of a perverted and false view of the true religion of Islam. They have added to conventional means of terrorism the use of chemical or biological poisons. We know Al Qaida has been trying to develop a so-called dirty bomb, a crudely made nuclear device.

The other thing we know is that there are states, repressive and tyrannical, who are developing, proliferating or trading in these unconventional weapons. Iraq is not the only state to have them.

But Saddam is the only leader that has used them; and the only one in such plain defiance over 12 years of UN Resolutions in respect of them. But I fully agree. He is not the only threat. There are others. And not just states. People sometimes ask me whether there is something I know that others don't. Of course there is intelligence I receive. The details of it remain secret as they should.

I can only say what is the nature of what I see. I see almost daily evidence of terrorist plotting round the world, desperately seeking a chink through the security infrastructure that protects our nation and others. And I see a growing desire on the part of these repressive states to acquire weapons of mass destruction and a growing willingness on the part of others to help them.

These helpers can be companies or individuals or groups of individuals who sell expertise, scientific know-how, parts of machinery for the weapons of mass destruction. Over the past two or three years, my anxiety about this has grown. In February 2001 at my first press conference with President Bush I raised it. Then September 11th happened and what had been a gnawing anxiety became a conviction. I spoke about it on September 14th and have not stopped doing so.

The belief I have is this: that if we do not take a stand now against the growth of this chemical, biological and nuclear weapons threat, then at some point a state or a terrorist group, pursuing extremism with no care for human life, will use such weapons, and not just Britain but the world will be plunged into a living nightmare from which we will struggle long and hard to awake.

I know many of you find it hard to understand why I care so deeply about this. I tell you: it is fear. Not the fear that Saddam is about to launch a strike on a British town or city tomorrow or the next day. Not a conventional fear about a conventional threat.

But the fear that one day these new threats of weapons of mass destruction, rogue states and international terrorism combine to deliver a catastrophe to our world; and the shame then of knowing that I saw that threat, day after day, and I did nothing to stop it. I cannot, and I will not, do that. No matter how hard the decision, I will try to do what I believe to be right.And do not think that if we back away now, we will cease to be a target. If we fail to insist on the disarmament of Saddam and leave him in charge of Iraq with his weapons, having faced us down, do you think it will be the last we hear of weapons of mass destruction? And to those people who say we will encourage more terrorism by enforcing the UN will, do you think if we retreat now, the terrorists will reward us, will respect us, will fold up their machinery of death and disappear?

If we think so, it is a cruel delusion. If we fail this, the first test of our determination, it will not be the end; it will only be the beginning.For these extreme groups or states do not abide by our values of tolerance, liberty or democracy. On the contrary they detest them. And they know that in conventional military terms we are infinitely more powerful than they are. That is why people here find it so hard to feel threatened. It is where we have to dispense with all notions about traditional forms of threat and realise that this is a new phenomenon.

For centuries Europe was at war, constantly. It is now at peace. The 20th Century battles of ideology, fascism and communism, are thankfully gone. The Cold War is over. But so is every conventional textbook on international security.

Understand what terrorism of this kind is designed to achieve. It is designed to produce chaos and hatred. And it can succeed. Look at the tensions between India and Pakistan, possibly as dangerous as any situation in the world today. What is fuelling it is of course the Kashmir dispute and of course there are underlying reasons for it.

But what is inflaming it is terrorism, making it harder for people to come together to resolve it. Look at the baleful effect of terrorism on the Middle East Peace Process; on Chechnya; or the effect on American policy after September 11th. Look at how, now, in Europe, nations are having to introduce new laws, how there are community tensions, how our economies and security are affected, by the potential threat of terrorism.

And now imagine what would happen if the terrorists did get hold of weapons of mass destruction; or if one of these states used a nuclear device. Do not think there is a single corner of any land, no matter how distant from the original act, no matter how uncomprehending of the original dispute, that would not be enveloped in its consequences.

There are glib comparisons that can be made with the 1930s. And I don't make them. History never repeats itself precisely. There are a multitude of differences between now and then. But there are lessons from that time. We look back now and with the wonderful benefit of hindsight and the knowledge of what happened, we think it all obvious; obvious fascism was a threat; obvious we had to fight it; obvious the opponents of fighting it were wrong.

But none of it was obvious. In 1938 Chamberlain was a hero when he brought back the Munich Agreement. And he did it for the best of motives. He had seen members of his precious family, people he loved, die in the carnage of World War I. He strove for peace not because he was a bad man. He was a good man. But he was a good man who made the wrong decision.

Because the lesson we learnt then was that if, confronted by a threat, we back away because we assume that our good and peaceful intentions are matched by those threatening us, the threat only grows and at a later time has to be confronted again, but in a far more deadly and dangerous form.

And naturally Saddam will play his game, throwing out concessions to divide us, to try to weaken our will. He's done it for 12 long years. He's at it now. Does anyone think he would be making any concessions but for the army camped on his doorstep? Ah, people say, but what you're saying is it doesn't matter what he does, he'll never satisfy you.

But he knows exactly what he must do. He must account for what the UN Inspectors, when after years of obstruction, they finally left Iraq, said was unaccounted for. The 8500 litres of anthrax, the 360 tons of bulk chemical warfare agents, the 3000 tons of precursor chemicals, the 1.5 tons of VX nerve agent, or the 6,500 chemical bombs.

And he must free the experts who worked on the programmes to speak to the Inspectors, not tape recorded, not minded by Iraqi security, but able to talk freely and honestly of what they have done. He must, in other words, stop playing and decide to disarm. A genuine change of heart and mind. That is all we ask.

It is what the UN demanded when it gave him a "final opportunity" in Resolution 1441 last November; when it said that he had to comply fully, unconditionally and immediately. And all we ask now is that the UN means what it said and does what it meant.

I passionately want this resolved through the UN. Unilateralism is the very opposite of the approach we have sought and argued for. But that is why multilateralism has to be the means of achieving our objective, not the means of avoiding its achievement.

And if we have to act, let us do so on this basis. Let us put as much resource and commitment into the humanitarian plight of the Iraqi people as we do into any conflict. And to those on the left who doubt the justice of removing Saddam, understand that the humanitarian crisis in Iraq is not something we will create.

It is there. Listen to the testimony of Ann Clwyd, a brave and tireless campaigner against the barbarism of the Iraqi regime and the suffering of the Iraqi people when the world's attention was turned away. Listen to the accounts of the victims of Saddam's torture and brutality.

Hear those voices of the four million Iraqi exiles who are forced to live abroad, of the Shia Muslims driven from the lands of the South, of the Kurdish Muslims murdered in the North.

And recognise that thanks to the British and American pilots who police the no fly zone in Northern Iraq, Saddam's writ there is contained and there at least, despite even the sanctions, hospitals and schools have been built, child mortality has fallen, human rights are given some respect. By all means let a right-wing isolationist who believes only in a narrow view of self-interest attack us for interfering in someone else's business.

But for those of us who believe in international solidarity, who will intervene to prevent another human being's suffering, who say that such suffering is our business, if we do take action, let us do so, secure in the knowledge that to remove Saddam would be to rid the world of one of the most revolting regimes in modern political history.

Three times I have been involved in regime change: in Kosovo, in Sierra Leone, in Afghanistan. And for all the difficulties each of these countries now faces in rebuilding their troubled lands, I am proud of what we did and at least now those people can rebuild with some hope for the future.

But our search for justice should not stop there. Do not believe the Arab world supports Saddam. But they and the rest of the world know: there will be no lasting security in that region, or any, until there is a lasting, durable and just peace between Israelis and Palestinians. President Bush recommitted himself to this process two days ago on the basis of two states, an Israel, confident in its security, recognised by the whole of the Arab world, and a viable Palestinian state. I commit myself likewise and will not rest until we have achieved it.

Keir Hardie was right when he said of the people in our Party:

"The men and women who are in it are not working for themselves; they know perfectly well that all they can do is but to create the beginning of a condition of things which will one day bring peace and happiness and freedom and a fuller life for those who are to come after us".

What we've achieved in the last six years, the popular changes but also the tougher decisions, could never have been done without you.

In Wales, there would no devolved assembly without this Party; no miner's compensation deal. The poorest pensioners would still be freezing in winter; and the NHS would still be starved of funds.

So today, I want to thank you.

The Labour Party isn't just Ministers or just MPs. It's the activists who give up their time to knock on doors in all weathers, who make the calls and campaign to win. It's the trade unionists who fight for decent terms and conditions for the low paid. It's the Young Labour Groups who up and down the country campaign against racist groups like the BNP. It's Labour supporters - new and old - who have placed their trust in us to build a better Britain.

What we achieve, we achieve together. And however tough the challenges, we will come through them together, even stronger and more determined in our purpose.

The National Assembly, thanks to the leadership and commitment of Rhodri Morgan, is leading a newly confident Wales, giving a lead to the rest of the UK.But now our task is to ensure devolution really delivers for the people of Wales, achieving not just greater democracy, but also better public services and stronger communities.

Those who said devolution would lead to the break up of Britain were proved wrong. You are showing diversity does not mean division, quite the reverse.

People can see themselves as Welsh and British at the same time.

Devolution to Wales is part of a wider programme of constitutional reform designed to move us away from a centralised Britain to a more decentralised, plural state.

The Scottish Parliament has led to a radical decline in the number of Scots wanting separation. In London, there is now an elected Assembly and Mayor. In Northern Ireland, thanks to the efforts of its leaders we still have a chance to end generations of sectarian conflict, the chance of a new future.

But constitutional reform and devolution can never be ends in themselves. They are about partnership between Cardiff and Westminster, a principle on which Rhodri and Peter have led the way. But partnership is only a means to an end: to improve the lives of the people we serve.There are already real achievements of which Wales and the Assembly can be proud.

Wales has seen the best primary results ever. Class sizes are smaller. Free entry to museums. And thanks to the Assembly, we've even brought back the free school milk the Tories took away.

But a huge task still remains. There are major challenges in improving public services.

So, for that reason we are investing on a scale unprecedented in Britain. This year, next year, the year after, this is the only major country in Europe where spending on health and education as a proportion of national income is rising in real terms. As a result of the last spending review we are providing an extra £2.3 billion for Wales.

We said schools and hospitals first and we're building them.

New hospitals, because of investment. Extra nurses, teachers, police - investment. New cancer equipment, heart surgeons and life-saving drugs - investment. Eight new hospitals for Wales open or underway. Hundreds of schools rebuilt or refurbished. Huge rises in recruitment of nurses, doctors, teachers, police.

All because of investment.

To any Tory who says investment is wasted, I say visit your local state school or NHS hospital and you will see the difference.

We know also demoralised staff don't perform best - why competition in public services should never be on the basis of cutting wages or employment protection.

This month we took a historic decision to end the two-tier workforce. Any contractor tendering for services must offer terms and conditions no less favourable than local authority employees currently enjoy.

And in 18 Tory years here in Wales, unemployment trebled. Families of three generations where not a single person worked. Record youth unemployment.And what did they say? 'It was a price worth paying'.

We know conference - unemployment is never a price worth paying.

This Party was created to end the scourge of mass unemployment.

Today, we are closer to achieving our historic goal of full employment than any previous generation.

It is true we currently face a difficult economic environment; globalisation creates constant challenges. But the fundamentals of our economy both in Wales and Britain are the strongest they have been for a generation.

Employment today is rising, not falling. Unemployment here in Wales is at its lowest for 25 years. Interest rates are at there lowest for nearly 40 years.We have seen 61,000 new jobs in Wales in the last year alone. Only last week a £77 million investment secured 3,300 jobs in St Athan - thanks to the help of this Assembly.

And because we believe in a society of opportunity and security for all, we combine these new jobs, additional investment and reform of public services, with measures to tackle poverty from 'cradle to grave'.

In Wales, 350,000 families are set to benefit from the Working and the Child Tax Credits. A massive expansion of childcare is underway with free nursery places for every three and four year old.

Next year, students in higher education from low-income families will receive new Assembly learning grants. 55,000 people helped by the New Deal.Objective One funding is now in place to help deprived communities in West Wales and the Valleys.

And 250,000 of the poorest pensioner households will have their pensions increased, along with free bus passes, higher winter fuel allowances and TV licenses for the elderly. On miners' compensation, where I know the money has not been getting to those who need it quickly enough, we are speeding up payments to get the money to those who need it most - £267 million in total so far.

That's a Labour Government in action.

And that is what we mean by the redistribution of wealth, power and opportunity - of a Labour Government and a Labour-led Assembly working for Wales.And for those in work do not forget it was this Government that introduced after a hundred years of trying the democratic right to be represented by a trade union should you want it.

It is this Government that created the minimum wage and equal pay, new rights to work, new rights for part time as well as full time workers, new rights for women workers.

It was our choice; it was the right thing to do.

And I can tell you when we receive the recommendations of the commission we are ready to raise the minimum wage even for them to secure greater dignity for low paid workers.

Our values ensure we will never abandon people to the mercy of markets in the global economy.

But neither should we abandon them to communities scarred by crime and anti-social behaviour.

We are making progress. Overall crime is down 15% in Wales since 1997 thanks not least to the 600 extra police. And we have done more than any other government to tackle crime's causes by investing to give opportunity in jobs and services.

That's what May's elections are all about.

We have made our choice. It is to invest in our future. We will not shrink from the difficult choices to achieve it.

Governing is about hard choices. Between better schools, hospitals and police or a return to their neglect. Between the strength to invest for the long-term, or cuts. Between commitment to build strong communities or a belief there is no such thing as society.

Make the wrong choice and we put at risk the stability and investment on which the security of millions depends.

So, we should face the battle ahead with confidence.

What does Wales want for its future?

Labour stands for strong leadership with Rhodri Morgan, the Nationalists for isolation and anonymity.

The dividing line is clear: Labour stands for more jobs, better public services, safer communities.

The Nationalists want none of it. Their number one priority for Wales is another constitutional convention. They are the separatists who can't and won't come clean.

While Labour is getting on with the job, fulfilling its mandate for better schools and hospitals, Plaid want to take you back - a steady, stealthy drift towards separation and isolation.

So, between now and polling day we must remind people of the choice: leadership and better public services with Labour. Isolation and breaking Britain apart with the Nationalists.

Labour stands for values. Our policies change as we face up to new challenges; but the values remain the same: social justice; solidarity; opportunity for all.

These are values for Wales. Values for Britain. Values our world needs."