The National Children's Bureau, which receives £12 million a year, mainly from Government funded organisations, has issued guidance to play leaders and nursery teachers advising them to be alert for racist incidents among youngsters in their care.

This could include a child of as young as three who says "yuk" in response to being served unfamiliar foreign food.

The guidance by the NCB is designed to draw attention to potentially-racist attitudes in youngsters from a young age.

It alerts playgroup leaders that even babies can not be ignored in the drive to root out prejudice as they can "recognise different people in their lives".

The 366-page guide for staff in charge of pre-school children, called Young Children and Racial Justice, warns: "Racist incidents among children in early years settings tend to be around name-calling, casual thoughtless comments and peer group relationships."

It advises nursery teachers to be on the alert for childish abuse such as: "blackie", "Pakis", "those people" or "they smell".

The guide goes on to warn that children might also "react negatively to a culinary tradition other than their own by saying 'yuk'".

Staff are told: "No racist incident should be ignored. When there is a clear racist incident, it is necessary to be specific in condemning the action."

Warning that failing to pick children up on their racist attitudes could instil prejudice, the NCB adds that if children "reveal negative attitudes, the lack of censure may indicate to the child that there is nothing unacceptable about such attitudes".

Nurseries are encouraged to report as many incidents as possible to their local council. The guide added: "Some people think that if a large number of racist incidents are reported, this will reflect badly on the institution. In fact, the opposite is the case."

Michelle Palmer, manager of a publishing firm, was arrested after a police officer reportedly found her and a British holidaymaker in a compromising position on Jumeirah Beach in the Arab state.

The 30-year-old is thought to have been charged with having sex outside marriage - considered an offence in Dubai - as well as indecent behaviour in public, being drunk in public, and assaulting a police officer.

Miss Palmer told the Sun that she fears she will be 'made an example of' under the strict laws of a country where even mild public displays of affection are frowned upon.

She faces and her fellow accused face a sentence of between three months and six years in jail in the state, one of seven that makes up the United Arab Emirates.

She told the newspaper: "Because this is known everywhere they're going to make an example of us and we're going to get a higher sentence.

"We are in so much trouble and my family and everybody are affected. Until someone is in this situation they could never know what it's like. It's bad - it's so, so bad.

"They are being pushed into a corner to make an example of us. I'm panicking - my mum is on anti-depressants. I can't say anything else. I've got to go."

Miss Palmer, is said to been drinking champagne during a brunch with colleagues last Friday before agreeing to go for a walk on the beach with a friend of a colleague.

When the pair were allegedly found having sex by a policeman, he is said to have let them off with a caution. However, later, after the couple were discovered in the same position, they were arrested, and Miss Palmer is said to have become aggressive.

The exclusive residential area, which boasts a number of luxury hotels, is popular with Western expatriates. Although alcohol is available to non-Muslims in hotel bars, it is an offence to drink or be drunk in public.

A Foreign Office spokesman said: "Two British nationals were arrested in Dubai. The case is currently under investigation."

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The US Democratic presidential candidate, Barack Obama, called for tighter sanctions on Iran today after it fired nine test missiles that were capable of hitting American and Israeli bases.

"Iran is a great threat. We have to make sure we are working with our allies to apply tightened pressure on Iran," the Illinois senator said.

Iran demonstrated its military force with the test-flight of nine long and medium-range missiles in the strategic Strait of Hormouz, through which 40% of the world's oil passes.

Tehran said the exercise was in retaliation to threats from the US and Israel over its disputed nuclear projects, which it claims are civilian.

Obama said if he were to be elected president, he would combine more direct diplomacy with the threat of much tougher economic sanctions.

"I think what this underscores is the need for us to create a kind of policy that is putting the burden on Iran to change behaviour, and frankly we just have not been able to do that over the last several years," Obama said.

He cited reports that US exports to Iran have increased under George Bush, even as the administration has toughened its rhetoric.

Earlier, the US secretary of state, Condoleezza Rice, said the "war games" justified America's defence plans with bases in eastern Europe. She said the tests were "evidence that the missile threat is not an imaginary one."

"Those who say there is no Iranian missile threat against which we should build a missile defence system perhaps ought to talk to the Iranians about their claims."

Her comments were backed by the Republican presidential candidate, John McCain. He said the tests "demonstrate the need for effective missile defence now and in the future, and this includes missile defence in Europe as is planned with the Czech Republic and Poland". These plans are strongly opposed by Russia.

But the Kremlin, which has resisted US calls for tougher UN sanctions on Iran, said it shared concerns about Tehran's nuclear programme.

Speaking from Japan, where Bush attended the G8 summit, the White House spokesman Gordon Johndroe said the Iranians should "refrain from further missile tests if they truly seek to gain the trust of the world".

"The Iranian regime only furthers the isolation of the Iranian people from the international community when it engages in this sort of activity," he said.

Washington said Iran's development of ballistic missiles violated UN security council resolutions. But it added that the US was committed to pursuing a diplomatic solution to the impasse over Iran's nuclear ambitions.

The practice shots by Iran's elite revolutionary guards were another in a series of conflicting messages coming out of the country over its nuclear programme and relations with the US and Israel.

General Hossein Salami, the guards' navy commander, told state television today that the test missiles exercise, called "The Great Prophet 3", would "demonstrate our resolve and might against enemies who in recent weeks have threatened Iran with harsh language".

An Iranian news agency quoted Salami as saying: "Our hands are always on the trigger and our missiles are ready for launch."

But less than a day ago, the Iranian president, Mahmoud Ahmadinejad, dismissed fears that Israel and the United States could be preparing to attack his country, calling the possibility a "funny joke".

At a press conference during a visit to Malaysia yesterday, Ahmadinejad said: "I assure you that there won't be any war in the future."

The G8 expressed "serious concern" over the risks posed by Iran's nuclear programme and urged Tehran to suspend all uranium enrichment-related activities.

"We call on Iran to respond to the updated incentives package in a constructive manner," a G8 statement said today. "We also urge Iran to act in a more responsible and constructive manner in the region, particularly in the context of the Middle East peace process and the stability of Iraq and Afghanistan."

Television reports said the missiles fired included a new version of the Shahab-3 missile, which officials have said has a range of 1,250 miles and is equipped with a conventional warhead weighing a tonne.

Such a missile could reach Israel, Turkey, Afghanistan or Pakistan.

US officials described that incident as a possible rehearsal for a strike on Iran's nuclear programme, which the west fears is aimed at producing atomic weapons.

Israeli government spokesman Mark Regev today said Israel "does not desire hostility and conflict with Iran".

"But it is clear that the Iranian nuclear programme and the Iranian ballistic missile programme is a matter of grave concern," he said.

Iran says its nuclear programme is geared only towards generating electricity, not producing weapons.

Last month, six major world powers offered a package of economic incentives to Iran if it halted nuclear activities. Tehran's response to that offer has not been made public.

For months, Ahmadinejad and other Iranian officials have played down the possibility of a US attack because they think difficulties in Iraq and domestic worries will deter America from engaging in another war.

At the same time, Tehran has stepped up its warnings of retaliation if the Americans - or Israelis - do attack, including threats to hit Israel and US Gulf bases with missiles and stop oil traffic through the vital Gulf region.

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