The new proposals are of immediate interest to New Delhi in the wake of the steps the British government took in line with the US after the nuclear tests in India last year.

Cook revealed his new policy with a list of several types of sanctions that can be imposed. These include "reduction of military contacts, visits and training," according to a note issued by the Foreign Office.

Cook had cancelled the visits of the Indian Army and Navy chiefs following the tests last year. But later the British defence secretary talked to Prime Minister Atal Behari Vajpayee's special emissary Brajesh Mishra and then to External Affairs Minister Jaswant Singh of London's desire for "resumption" of defence ties.

Coming in the wake of this change, Cook's new "smart" policy provides declared indication that the British government will not seek sanctions thatend up harming itself.

"Sanctions are a legitimate weapon for the international community but we must make sure that they punish the regimes at which they are targetted," Cook said in reply to a question in Parliament.

"The case for sanctions remains compelling," he said. "We need them to bring into line those regimes which breach the boundaries of acceptable behaviour, defy the international community and ignore diplomatic efforts."To protect the innocent as far as possible, the sanctions "must be smarter, hitting the regime rather than the people and hitting that regime where it hurts," Cook said. Iraq is a rare case where "comprehensive sanctions" must be imposed, he said.

Cook said Britain will discuss its new proposals "with our key partners" to work out a common approach. Several British government departments were involved in the review that led to the formulation of this policy. The review does not make a clear distinction between hitting the regime and hurting people. Sanctions would beimposed where there is reasonable prospect of succeeding "without disproportionate human cost."

The review spoke of the need to "avoid causing unnecessary adverse impact on UK economic and commercial interests." Unilateral sanctions, according to the review, "are especially likely to adversely impact on UK interests."But such sanctions "can sometimes be justified, for example where the UK is at war with another country," according to the review.

Britain will push for sanctions that are "tailored to fit the circumstance," according to the recommendations in the review. It is now seeking support from its key partners on a system of sanctions that can hit "the leadership or the capability of their armed forces" and also "hit a country's vulnerabilities."