THE PRINCESS of Wales was seeking clarification "as a matter of urgency" from Buckingham Palace yesterday after officials disputed her claim that there had been agreement over her future status following her divorce.
A Buckingham Palace spokesman disputed Princess Diana's claim that her title, residence and offices had already been settled. "The only aspect that has so far been agreed by the Prince and Princess of Wales is that they are to divorce," he said.
Although the spokesman confirmed that the Princess of Wales would lose the title of Her Royal Highness following the divorce, he insisted that it had been at her request.
"The decision to drop the style Her Royal Highness is the princess's own. It is wrong to suggest that either the queen or the Prince of Wales pressured her to do so. It's her own decision," he added.
The Princess of Wales's media adviser, Ms Jane Atkinson, said the divorce statement detailing the agreement was issued following a meeting with the Prince of Wales. According to Princess Diana, after her divorce she will retain her Kensington Palace apartment, her offices at St James's Palace and would be known as Diana, Princess of Wales.
"This was her understanding of what had been agreed privately with the prince. The princess had a meeting with her husband and came out of that meeting feeling this had been agreed. Otherwise she would not have made the statement," Ms Atkinson explained.
However, Buckingham Palace, which was furious that Princess Diana had issued the statement without informing any officials, said any divorce agreement would have to be approved by Queen Elizabeth.
Downing Street was also surprised by the Princess of Wales's announcement, as traditionally the British prime minister is informed of such developments. However, despite requests by several Tory MPs for a Commons statement detailing the constitutional effects and any agreed settlement, it appears to be unlikely.
Lawyers for all sides will have to meet again to decide exactly what was agreed between the Princess of Wales and her husband at their meeting. It is expected that the detailed negotiations may last for several weeks.
It is understood that Buckingham Palace has informed the Princess of Wales she will be assured of an annual income rather than a one off payment because it would create "insurperable difficulties" to suddenly raise such a large lump sum.
According to legal sources, the Princes of Wales has requested a lump sum of £15 million or an annual income of £1 million from the settlement. However, the exact nature of the financial deal still has not been officially agreed.
As the confusion of the settlement persisted, the Princess of Wales cancelled an official engagement in London last night for the British Red Cross, because she was "very upset and decidedly sad" about her divorce.
"She would prefer a few days of quiet before she picks up her public engagements again. Any woman would," added Ms Atkinson.