'Our own traditions of free speech and free demonstration must be upheld in respect of all matters, including the passage of the Olympic torch,' said Miliband. -- AP

But he also underlined the need for moderation over Tibet, which is threatening to cloud the Beijing Olympic Games this year after unrest in the Chinese-ruled Himalayan region.

'Our own traditions of free speech and free demonstration must be upheld in respect of all matters, including the passage of the Olympic torch,' scheduled for April 6, Mr Miliband told lawmakers.

The flame 'should, I believe, pass with full security but also full respect for our own democratic freedoms,' he said.

The violence in Tibet and subsequent clampdown has cast a shadow over the planning for the Aug 8 to 24 Olympic Games, which Beijing hopes will be a showpiece for the nation.

Tibet's spiritual leader the Dalai Lama, who has said he is open to dialogue with Beijing, reiterated a pledge on Tuesday to resign as spokesman for the Tibetan people if there were more violent anti-Chinese protests.

VIDEO China under new pressure over Tibet (1:32)

Mr Miliband warned that Tibet protesters should listen to the Dalai Lama's calls for moderation.

'The Dalai Lama has made it his business over the last 50 years not to argue for independence for Tibet, to voice calls for moderation and for dialogue,' he said.

'And the danger is that people give up on that course and turn to a more violent course of action. The need for political dialogue has never been greater.'

On the possibility of boycotting the Games, Mr Miliband said: 'I don't believe that a boycott of the Olympics is the right thing to do, not least because if you care about human rights in China, an unsuccessful Olympics or a wrecked Olympics is actually not going to do anything for human rights in China. If you actually care about human rights in China, you should actually engage, not isolate China.'

His comments came after French President Nicolas Sarkozy said earlier on Tuesday that he would consider a boycott of the Olympics' opening ceremony if China refused to open a dialogue with the Dalai Lama on Tibet. -- AFP