WILLIAM Hague claims the Labour government could have prevented the fiasco which has prevented Israeli diplomats coming to the UK.
A number of high-profile Israelis have cancelled plans to visit Britain for fear of arrest for alleged 'war crimes'.
The Conservative Shadow Foreign Secretary told the Jewish Telegraph: "The government should have dealt with the legislation properly and it could have been prevented.
"Israelis must be able to visit the UK without fear - it is an embarrassing and disappointing situation.
"(Foreign Secretary) David Miliband should present a solution and we have asked the government to press ahead as soon as possible."
He also told the Jewish Telegraph that Britain needed reassurances from the Israeli government regarding the three British Israelis caught up in the Dubai assassination affair.
Mr Hague said: "Just because there has been misuse of British passports does not mean an indication of guilt. However, we would like more details."
Mr Hague later addressed the British Israel Chamber of Commerce's 30th anniversary dinner,
He also slammed last week's decision by Manchester University's Politics Society to call off a talk by Israeli deputy ambassador as a result of pro-Palestinian supporters' protests.
He said: "I thought it was utterly deplorable. The left think they are acting liberally, but they are ill-informed and intolerant."
He also revealed that, had the Tories been in power, they would not have remained neutral regarding the UN vote on the controversial Goldstone Report.
He said: "We would have voted against it. The report did not even mention that Hamas started the war in Gaza last year."
Mr Hague emphasised that, should his party return to power in the forthcoming General Election, they would continue to work closely with the Israeli government.
Adding that he had joined the Conservative Friends of Israel at the age of 15, he said: "I have stood on the Golan Heights, swam in the Galilee and holidayed in Eilat.
"Britain is a natural friend of Israel. We want to see a secure, prosperous Israel alongside a secure, prosperous Palestinian state.
"We look to Israel to freeze the settlements. In a recent poll, only 30 per cent of the people living in Gaza had a favourable opinion of Hamas.
"We hold no truck with those terrorist groups who threaten Israel. "We support (special envoy to the Middle East) George Mitchell in carrying on his work and the intensification of talks between Israel and the Palestinians."
But Mr Hague, who was Tory leader for four years until 2001, warned that the scene in the region was set to darken due to Iran.
He explained: "Iran's nuclear ambitions could cascade into nuclear proliferation.
"We support every effort to engage Iranian diplomats on this issue and we support a full United Nations' arms embargo if it is not resolved."
Rotherham-born Mr Hague also praised the Jewish state.
He continued: "Israel is the embellishment of what can be achieved throughout passionate conviction."
BICC chairman Brian White said the organisation fields daily calls from Israeli businesses looking for outlets in the UK and for suppliers to Israel businesses.
He said: "We have matched those companies accordingly, using our own contacts and networks and feel sure that we have contributed to the growth and economy in both countries.
"We have presented many seminars and made numerous presentations to local chambers of commerce, hosted delegations from Israel and initiated export drives to Israel."
Mr White also said the Chamber had held a number of high-profile dinners and lunches with Israeli cabinet ministers.
He added: "This was to enable UK business to access Israeli markets and we have profiled a number of Israeli businesses to the north west business community to help them develop and fulfil their maximum potential."
Zionist Federation co-president Joy Wolfe expressed thanks.