Did a "Covenant of Security" Protect the United Kingdom?

Listening to the BBC World Service coverage, I thought I heard an announcer say that the British felt safe from terror prior to the recent bombings because Europe provided a base for terrorists. Hard to believe, so I checked it out on the web and came up with this article; in whichDaniel Pipes argues the British had a deal with terrorists, prior to July 7th, called the "covenant of security":

To the extent the allowing of Islamists and terrorists safe haven on British soil is a conscious decision to keep the UK safe at the expense of others, this is an immoral and despicable policy that must be changed immediately. (August 9, 2004)

If true, this theory might explain why indeed Britain did give asylum to Abu Hamza, Chechen warlords and Hizb-ut-Tahrir leaders, among other various and sundry terrorists, fanatics, and extremists--prior to the London bombings.