Tánaiste Ms Mary Harney this evening spoke of the Government's "tough decision" to permit the United States use of Shannon airport before and during the Iraq war.
Commenting in the face of continuing criticism of Government's position during the conflict, she drew the distinction between the State's long-standing policy of military neutrality and morality.
Ms Harney, delivering the keynote speech at the annual PD conference in Galway , said the Iraqi crisis had focused attention on foreign policy and relations with Europe, the United States and the United Nations as never before.
She stressed: "Ireland is neutral in that we do not belong to any military alliance. But we are not neutral between right and wrong, between democracy and dictatorship, between the rule of freedom and the rule of fear.
"We were not neutral on September 11. We were not neutral when international terrorists attacked America, for that was not just an attack on America, but an assault on the democratic way of life which unites the entire western world.
"And we were not neutral when a campaign of murder was launched against the Muslims of Kosovo.
"It is important that we do not confuse neutrality with morality."
Ms Harney said Ireland would continue to work within the UN - which she called an imperfect institution and in need of reform - for the maintenance of peace in the world.
"The UN is still the best option available and deserves our support. We accept that support will sometimes involve backing for military action.
"Failure to accept that reality would condemn Ireland to a policy of isolation with no real role to play in world affairs."
Ms Harney said she knew of the "very strong feelings" felt by many people in Ireland over the Shannon issue - but governments had to deal with the world as they find it, and not as they would like it to be.