Brown's options for the machinery of Whitehall are constrained, as for all prime ministers, by the need to palliate allies and hug enemies close (John Reid, say).
to reduce the effects of illness, pain etc without curing them (past participle of palliare , from pallium; PALL)
lessen or to try to lessen the seriousness or extent of; "The circumstances extenuate the crime"
(3 syl ) means simply to cloak (Latin, pallium, a cloak ) That we should not dissemble nor cloke them [our sins] but confess them with a humble, lowly, and obedient heart - Common Prauer Book
to try to conceal the seriousness of an offense by excuses and apologies; to moderate the intensity of; to reduce the seriousness of; to relieve or lessen without curing