The Secret Policeman sparked the inquiry into racism

The watchdog found forces in England and Wales were still "frozen solid at the core" on race issues.

The report made 125 recommendations including a rewritten code of conduct imposing a duty not to tolerate racism.

The Home Office said the report showed there was "still a long way" to go to eradicate racism in the police.

The CRE inquiry was launched in October 2003 in the wake of The Secret Policeman, a BBC documentary which highlighted racist behaviour among police recruits in several forces.

Willingness to change at the top is not translating into action lower down Sir David Calvert-Smith The full CRE report (1.03MB) Most computers will open PDF documents automatically, but you may need to download Adobe Acrobat Reader. Download the reader here

The 300-page report stated: "We believe there should be a specific category for the offence for racial misconduct so that such cases are easy to identify and record."

At present, racial misconduct cases are brought under a number of different sections, increasing the chance that they are not properly recorded.

The report said forces should aim to establish a "core ethic of respect and consideration" for people from ethnic minorities, rather than concentrating on using "correct and incorrect" race terminology in diversity classes.

It noted: "There is a real potential for 'backlash', particularly among some white officers."

The study was headed by former director of public prosecutions Sir David Calvert-Smith, who is now a High Court judge.

'Significant progress'

Sir David said: "Willingness to change at the top is not translating into action lower down."

He stressed the police had made significant progress, but added that there was still a long way to go.

Race, creed or colour should not come into being accepted into a police force Alan Baker, Chelmsford, Essex Have Your Say

In a statement, Home Office minister Hazel Blears said the government would consider the report's proposals and work with the CRE.

CRE chairman Trevor Phillips said he recognised that "we will never be able to weed out every single racist".

The report also recommended that police recruitment of ethnic minorities should be changed, with a target for the percentage hired each year.

The report was welcomed by the National Black Police Officers Association.