The British army decision to replace helmets with berets on patrol showed what was possible when violence left the streets of Northern Ireland, according to the Northern Secretary.
In a statement, Dr Mowlam described the move as "a sign of increasing confidence". She added: "Coming on top of the reduction in patrols announced last month, these measures indicate a steady return to normality which will continue, providing the level of threat and events on the ground allow it.
"These changes have been made on operational grounds by the army following a threat assessment, they can be reversed very quickly if necessary. Neither I, the army or the police will take chances with the safety of members of the security forces or the public."
Mr Ken Maginnis, security spokesman for the Ulster Unionists, said he had "no great objection" to removing the helmets provided it was an objective decision made by a military commander. "If it's purely for political effect I would worry there may be inherent danger for the soldiers."
Pointing out that the INLA and the Continuity Army Council had not declared ceasefires, he said he hoped no political pressure had been applied over the decision.
The SDLP and Sinn Fein said the move was a long way off what was needed. Mr Alex Attwood, a member of the SDLP talks team at Stormont, said: "What is required now is not another baby step but a leap forward. This initiative must quickly be followed by removal to barracks of army vehicles, a quick reduction in the number of patrols, withdrawal of long arms by both the RUC and army, and a systematic reduction in the number of soldiers on duty and in barracks.
"These would be important and visible confidence-building measures. Confidence-building is, however, a two-edged sword and all sides must now act without delay to cement the peace process," Mr Attwood said.
A Sinn Fein spokesman said it was a "cosmetic exercise which is irrelevant to the needs of nationalists". He added: "Since the IRA ceasefire on July 20th, the pattern and intensity of British army patrolling in nationalist areas has not changed."
He said removing the helmets was not enough: "It's not the hard hats we want to be rid of, it's the hard heads under them we want off the streets as a prelude to their return home as quickly as possible."