TEHRAN, April 27: Iran's embattled reformist President Mohammad Khatami publicly acknowledged on Tuesday that there were 'signs of despotism' in the Islamic republic, as he countered criticism in a meeting with young people.

According to Iranian news agency reports, Mr Khatami- frequently criticized for failing to stand up to more powerful hardline clerics - was given a tough grilling in a meeting to mark the national youth day.

"I know that what you are saying to me now you cannot say anywhere else, because you would pay dearly and have already paid dearly, and that there are many signs of despotism in our society," the president responded.

"During my presidency, I have received many letters from young people: complaints, protests and commentaries. One day I will publish them as documents that illustrate this sensitive period of our history," said the mild-mannered Khatami who was swept into office in 1997 and again in 2001 on the back of a tide of support from young people eager to see his message of social and political tolerance translated into real change.

But his initiatives have been consistently blocked by hardliners in the courts, security forces and legislative oversight bodies. Mr Khatami is now even more isolated after his allies in parliament were ousted in February's elections. His second term in office ends in June 2005.

Mr Khatami only promised that he would "in the near future and in the form of a letter, spell out to people the things and the preoccupations that I have never revealed." -AFP