Hope is not a plan

Anyone trying to develop a counterinsurgency plan for present-day Iraq should be able to develop a reasonable plan for this scenario:

It's just after Christmas, 1776. You have just been placed in command of the British effort in the Americas. Though large-scale military efforts have largely succeeded in diminishing the insurgents' ability to directly contest your government in the field, insurgent attacks continue. Notably, an allied contingent was captured the day after Christmas in Trenton. Earlier administrative and warfighting policies have led to an environment of discontent, with wide-spread support for insurgent forces. Many outside powers also view this as an opportunity to contest your nation's dominance on the world scale. How do you propose to effectively halt the insurgency, retain civil government in the area and avoid the appearance of vulnerability to other world powers?