Craig Murray comments:

The proposal is obvious madness -- if the government was looking to provoke young British Muslims, no tactic would work better. Which does lead us, quite seriously, to be forced to question whether Reid and Blair are trying deliberately to cause an even further deterioration in community relations. There are two possibilities: either they are trying to provoke more "Islamic" violence, or they are very stupid.

Come to think of it, there is a third possibility. They may be trying to provoke more Islamic violence, and be very stupid.

See:
http://www.craigmurray.co.uk/archives/2007/05/the_end_of_libe.html.

On the question of whether there is a deliberate attempt to "cause an even further deterioration in community relations", Postman Patel is suspicious about who is really behind a planned demonstration in London on June 15th which might lead to clashes between Muslims and BNP fascists on that day.

See:
http://postmanpatel.blogspot.com/2007/05/race-riot-due-whitehall-june-15th-you.html
http://postmanpatel.blogspot.com/2007/05/stormfront-bnp-mobilise-their-forces.html.