Army chiefs want foreign recruit numbers to be capped to safeguard 'Britishness' within the ranks.
They have demanded a 15 per cent limit amid fears the soaring numbers of foreign troops would dilute the force's cultural identity.
They also fear that foreign countries could ban their own citizens from fighting Britain's wars, seriously hampering key operations.
The measure has been backed by Defence Secretary Des Browne and was due to be announced two weeks ago.
But the plans have been thrown into chaos by race relations watchdogs who will not support the measure.
The Equality and Human Rights Commission says there are 'large issues of principle'.
Senior officers are angry over the Government's dithering, and recruiting trips to the West Indies have had to be cancelled until the confusion is cleared up.
Some branches of the Army are already at the planned 15 per cent limit and would have to start turning away foreign applicants as soon as the policy comes into force.
Army manpower is falling as recruitment fails to keep pace with the exodus of experienced troops.
Commanders admit the overstretched military could no longer function without the growing numbers of troops from Fiji, the West Indies, South Africa and elsewhere.
The current 6,500 foreign soldiers now account for almost 7 per cent of Army manpower, up from just 0.3 per cent in 1997.
Almost two-thirds of all applicants wanting to join the Army in London are now foreign.
Across the whole Army the figure is almost 20 per cent.
Leaked documents seen by the Daily Mail reveal that defence chiefs believe enough is enough, and that an over-reliance on foreign troops is threatening Britain's fighting capabilities.
Classified Ministry of Defence papers say the new limit aims 'to reduce the risk to operational effectiveness from an over-reliance on personnel who are not British citizens and are not therefore under the full control of the UK Government.
'For example, other Governments might introduce laws which ban their citizens from taking part in the conflicts in Iraq and Afghanistan. We cannot have parts of the Army unable to be deployed.'
The paper also warns that the nation must maintain 'Armed Forces which are predominantly British and whose members reflect and share the culture and values of British society'.
Mr Browne accepted the Army chiefs' demands in July, provided that the Equality and Human Rights Commission backed the move.
The 15 per cent cap, which would apply to each branch of the Army - such as infantry, engineers, artillery and logistics - would breach the Race Relations Act by treating foreigners less favourably.
They have demanded a 15 per cent limit amid fears the soaring numbers of foreign troops would dilute the force's cultural identity.
They also fear that foreign countries could ban their own citizens from fighting Britain's wars, seriously hampering key operations.
The measure has been backed by Defence Secretary Des Browne and was due to be announced two weeks ago.
But the plans have been thrown into chaos by race relations watchdogs who will not support the measure.
The Equality and Human Rights Commission says there are 'large issues of principle'.
Senior officers are angry over the Government's dithering, and recruiting trips to the West Indies have had to be cancelled until the confusion is cleared up.
Some branches of the Army are already at the planned 15 per cent limit and would have to start turning away foreign applicants as soon as the policy comes into force.
Army manpower is falling as recruitment fails to keep pace with the exodus of experienced troops.
Commanders admit the overstretched military could no longer function without the growing numbers of troops from Fiji, the West Indies, South Africa and elsewhere.
The current 6,500 foreign soldiers now account for almost 7 per cent of Army manpower, up from just 0.3 per cent in 1997.
Almost two-thirds of all applicants wanting to join the Army in London are now foreign.
Across the whole Army the figure is almost 20 per cent.
Leaked documents seen by the Daily Mail reveal that defence chiefs believe enough is enough, and that an over-reliance on foreign troops is threatening Britain's fighting capabilities.
Classified Ministry of Defence papers say the new limit aims 'to reduce the risk to operational effectiveness from an over-reliance on personnel who are not British citizens and are not therefore under the full control of the UK Government.
'For example, other Governments might introduce laws which ban their citizens from taking part in the conflicts in Iraq and Afghanistan. We cannot have parts of the Army unable to be deployed.'
The paper also warns that the nation must maintain 'Armed Forces which are predominantly British and whose members reflect and share the culture and values of British society'.
Mr Browne accepted the Army chiefs' demands in July, provided that the Equality and Human Rights Commission backed the move.
The 15 per cent cap, which would apply to each branch of the Army - such as infantry, engineers, artillery and logistics - would breach the Race Relations Act by treating foreigners less favourably.
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