UPDATE 1-Palace scolds Sun for publishing Queen's childhood 'Nazi salute' image
* Queen shown making childhood 'Nazi salute'
* Palace says film from private royal archive
* Palace criticises Murdoch's Sun tabloid newspaper
* The Sun defends publishing the images (Rewrites first paragraph, adds comment from The Sun, background)
By Guy Faulconbridge
LONDON, July 18 (Reuters) - Buckingham Palace scolded Rupert Murdoch's top-selling Sun tabloid on Saturday for publishing a previously unknown film from 1933 that appears to show Britain's Queen Elizabeth performing a Nazi salute as a young girl.
The black-and-white film from the year Adolf Hitler came to power purports to show future British king Edward VIII instructing his nieces, the current monarch Elizabeth, aged about six or seven at the time, and her three-year-old sister, Princess Margaret, how to perform the Nazi salute.
Dancing and smiling with little apparent understanding of the salute's significance as a sign of obedience to Hitler, the two young girls are encouraged by Edward to briefly perform the raised right-arm gesture in the grounds of Balmoral Castle in Scotland.
The Sun published the story and the 17-second film on its website under the headline "Their Royal Heilnesses". Edward also raises his arm, as does his sister-in-law, the Queen Mother. Continued...