By Stephanie Nebehay

GENEVA, April 10 (Reuters) - Britain was criticised by its allies and detractors at the U.N.'s main human rights forum on Thursday, over its treatment of terrorism suspects, prison inmates and racial minorities.

In a three-hour debate at the United Nations Human Rights Council, countries also raised questions over the conduct of British troops deployed overseas and rising rates of suicide among prison inmates in overcrowded domestic jails.

Britain, the closest U.S. ally in the "war on terror", is among the first 16 countries whose records are being examined by the 47-member forum at a two-week meeting.

In response to concerns voiced by Cuba, India and Syria, Michael Wills, Britain's minister of state for justice, said his government was constantly reviewing counter-terrorism legislation to deal with an unprecedented threat.

Britain ensured its laws laid down proportionate measures and "only in very limited circumstances is secret evidence used to justify the detention of suspected terrorists", delegation head Wills told the Geneva talks.

"The powers within all counter-terrorism legislation are not aimed at any particular race or religion or any other group. They are aimed at criminals, at terrorists, whatever background or section of society they may come from," he added.

British security services have been on high alert since four suicide bombers killed 52 people on London's transport system on July 7, 2005. The attacks prompted a toughening of anti-terrorism laws in Britain.

Switzerland said it hoped Britain would reduce rather than extend the maximum period during which suspects may be detained without charge. Currently 28 days, it is already the longest in the European Union, the Swiss delegation said.

Iran voiced concern at "increasing racial prejudice against ethnic minorities, asylum seekers and immigrants" in Britain and a "disproportionately high number of stops and searches carried out by police against members of ethnic or racial minorities".

The U.S. delegation expressed concern at what it said was a rise in suicides among inmates in overcrowded prisons throughout Britain and Northern Ireland.

On alleged abuses by British armed forces deployed overseas in countries like Iraq and Afghanistan, Wills said its soldiers were subject to English criminal law and could be tried for crimes no matter where they were committed.

The Council was set up two years ago to overcome charges of selective scrutiny by its widely-discredited predecessor, the U.N. Commission Human Rights. It will examine the records of all U.N. member states over the next four years. (Editing by Jonathan Lynn and Jon Boyle)

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