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I agree that the focus needs to be on racism and that we need to retain - and strengthen - the CRE. I didn't know about the European demands in this area; I do know that the implementation of the British Race Relations Amendment Act is not being monitored well. Without monitoring it is just a piece of paper to too many organisations.
 
I have no idea why 'community cohesion' has anything to do with the government. As for diversity - this country has always been diverse, not only in terms of 'ethnicity', and language, but also social class. What we have to do, I think, it ensure that the 'English' are well informed of this. But that is not what the govt. means: it seems to think that 'celebrating' current diversity is what should happen eg in Black History Month.
 
I've attached an article of mine recently published in race equality reaching, 22/3 summer 2004 which is relevant.
Marika