IN AN unprecedented speech, the Queen yesterday bared her soul over

her ''annus horribilis'' -- a horrible year.

The Queen's frank and deeply personal message came in a speech to more

than 500 invited guests at a Corporation of London luncheon at the

Guildhall to mark her fortieth year on the throne.

In a voice cracking through the effects of a heavy cold, the Queen

spoke about the distress felt by the royal family in a year blighted by

the separation of the Duke and Duchess of York, the alleged marriage

troubles of the Prince and Princess of Wales, and the fire which ravaged

Windsor Castle.

She acknowledged that the monarchy should not be above criticism but

effectively pleaded for a fairer hearing from both press and public. To

this she allied a pledge to work for change while maintaining the

institution's stability and continuity.

The Guildhall guests, who included the Prime Minister and Labour

leader John Smith, rewarded her with an enthusiastic standing ovation.

Away from Guildhall, however, MPs and royal commentators reacted with a

mixture of surprise, enthusiasm, and even scorn.

The Queen told the Guildhall guests: ''Nineteen ninety-two is not a

year on which I shall look back with undiluted pleasure. In the words of

one of my more sympathetic correspondents, it has turned out to be an

'annus horribilis'. I suspect that I am not alone in thinking it so.

''Indeed I suspect that there are very few people or institutions

unaffected by these last months of worldwide turmoil and uncertainty.''

The Queen said criticism was ''good for people and institutions that

are part of public life'', adding that the monarchy should not expect to

be free from scrutiny.

''But we are all part of the same fabric of our national society and

that scrutiny, by one part of another, can be just as effective if it is

made with a touch of gentleness, good humour, and understanding.''

At a time when opinion polls suggest the monarchy is suffering from

growing unpopularity, the Queen did little to defuse the row over who

should pay for repairs to Windsor Castle. She referred only in passing

to the ''tragic'' blaze, saying it made her and the Duke of Edinburgh

all the more grateful for the hospitality and welcome extended by the

City.

In a passage which some observers interpreted as an open plea for

understanding, the Queen said: ''I dare say that history will take a

slightly more moderate view than that of some contemporary

commentators.''

The 10-minute speech, brought forward from the end of the luncheon to

the beginning to help save the Queen's voice, was widely welcomed by her

audience.

Mr Smith said: ''I think it was very interesting. She is entitled to

defend herself and she did it rather wittily and rather charmingly. It

is probably true that she has had a horrible year.''

The former Tory Minister and leading constitutional expert, Lord St

John of Fawsley, said: ''It was wonderful, just the right sort of speech

and the right sort of tone. She showed tremendous courage and

determination.''

Away from Guildhall, the speech met a mixed reception.

Author Andrew Morton, whose book about the Princess of Wales provoked

a storm of speculation about her marriage, defended his role in the

Queen's unhappy year by saying he was ''just the messenger''.

As he picked up the London Press Club's Scoop of the Year award for

Diana -- Her True Story, he said: ''I have merely chronicled what was

going on inside the House of Windsor.''

Romantic novelist Dame Barbara Cartland, step-grandmother to the

Princess of Wales, was ''disappointed'' there was no mention of how

ordinary people, who were expected to foot the bill for the Windsor

fire, were suffering from high unemployment and the recession.