A "torn and tattered" Union flag pulled from the rubble of Ground Zero in New York, was handed over to Home Secretary David Blunkett at a commemoration ceremony for the victims of 11 September.

About 2,000 people gathered outside the US Embassy in Grosvenor Square, central London, for the emotional service.

The square became a focal point in Britain last year for people to mark the tragedy with tears and flowers.

It was the same this year as American flags were waved and people cried as the US Air Force band played the American national anthem and the hymn Amazing Grace.

Many were in tears during the service

The Union flag was given to the home secretary by Lieutenant Frank Dwyer, from the New York Police Department who was on duty on 11 September.

He said that the flag represented not only the "pain and agony of that day" but also the support shown by Great Britain in "America's darkest hour".

"It is a rich symbol. A symbol of the endurance and strength of the British people and the pain and agony gone through that day. That consecrated day.

"This flag belongs back in this land."

'Best of humanity'

Accepting the flag, Mr Blunkett praised the rescue services which attended the devastated area around the World Trade Center.

He said: "The police and fire service of New York showed the best of humanity, greatest bravery and the most tremendous courage.

"We owe it to ourselves to have the courage to face down those who would take away our safety and security and undermine our democracy.

"So I have no hesitation in saying this morning God Bless America."

The home secretary accepted the flag

American ambassador William Farish also thanked Britain for its help.

"My friends, I speak on behalf of Americans both here and at home: we will never forget your sympathy, your empathy, your morale emotional and practical support," Mr Farish said.

"We continue to draw strength from your constancy. It will take much more than a year for the wound of 11 September, 2001 to heal."

Many in the crowd wore badges with the US and British flags entwined on them that had been handed out at the security checkpoint by volunteers.

One of them, Marca Joelson, 39, from New York, sobbed as she watched with her British husband Stephen, 46.

Mrs Joelson, who was a volunteer at Ground Zero providing rescue workers with supplies, said: "We lost a lot of friends at Cantor Fitzgerald.

"It is unbelievable and totally incomprehensible to try to understand what has happened and what we are still going through."