May 23 (Bloomberg) -- The British government is unhappy with ``heavy-handed'' U.S. policy in Iraq, the London-based Sunday Times reported, citing a leaked Foreign Office memo.

Pictures of U.S. troops torturing Iraqi prisoners at Baghdad's Abu Ghraib jail have ``sapped the moral authority of the coalition, and lost us much public support inside Iraq,'' said the memo, titled ``Iraq: The Medium Term'' and dated May 19, according to the newspaper.

U.S. military tactics in Fallujah and Najaf some weeks ago fueled Sunni and Shi'ite opposition to the coalition, the memo said, according to the newspaper. The memo is intended for senior ministers, the Sunday Times said. ``We should not underestimate the present difficulties,'' it warns, said the Times.

Michael Howard, leader of the U.K. opposition Conservative party, last week called on Prime Minister Tony Blair to speak out publicly when he disagreed with the U.S., the newspaper said.

To contact the reporter on this story: Robert Hutton in London on rhutton1@bloomberg.net

Last Updated: May 23, 2004 05:34 EDT