Iran leader issues veiled criticism of moderates

By Zahra Hosseinian

TEHRAN (Reuters) - Iran's Supreme leader said on Thursday the Islamic Republic's "honour" in the world should not be questioned, in an apparent criticism of reformers challenging President Mahmoud Ahmadinejad in this month's election.

Supreme Leader Ayatollah Ali Khamenei spoke a day after a leading moderate rival accused the conservative president of humiliating the nation by adopting "extremist" foreign policies.

Former Prime Minister Mirhossein Mousavi made the allegation in a heated televised debate which underlined clear policy and personality differences between the two candidates widely viewed as front-runners in the June 12 presidential election.

The 90-minute debate, broadcast live on state television, captivated the nation as the candidates traded blows on issues ranging from the economy and relations with the United States to the Holocaust, which Ahmadinejad has repeatedly questioned.

Ahmadinejad's critics, including some conservatives, say his fiery anti-Western speeches have isolated Iran, which is at odds with the West over its disputed nuclear work.

Khamenei has in the past praised Ahmadinejad's handling of the nuclear issue and last month called on Iranians to back an anti-Western candidate, without mentioning any names.

"The honour of our nation today is reflected in the world," Khamenei said in a televised speech to mark the 20th anniversary of the death of his predecessor Ayatollah Ruhollah Khomeini.

"I do not accept the sayings of those who imagine that our nation has become belittled in the world because of its commitment to its principles ... this path will continue until final victory," he said.