BUCKINGHAM Palace officials will this week be studying details of the Duchess of York's American marketing deal which she hopes will pay off her estimated £3 million debts.
Royal aides will be concerned at reports that the spendthrift duchess may have agreed to sponsorship, personal endorsements and public appearances which could be seen as exploiting her connection with the royal family.
The multi million pound deal, which is thought to involve the worldwide TV, film, video and book publishing rights to her cartoon character Budgie the Helicopter, is believed to be the first time a member of the royal family has sold their services to a foreign company.
The queen, who has been informed of her estranged daughter in law's apparent business coup, does not know the precise details of the arrangement. But she has cautiously welcomed the deal, which could also involve selling new cartoon projects by the duchess.
A palace spokesman said if an agreement had been reached which would solve the duchess's money problems, then it was a welcome development.
But officials, who are always careful to avoid unauthorised commercial marketing of the royal family, will be watching to ensure the duchess does not overstep the mark to clear her massive debts which have resulted from a lavish lifestyle.
According to reports, the American behind the deal is Mr Ray Chambers (53), a multi millionaire entrepreneur based in New Jersey, who last year took over as the duchess's financial adviser from her Texan friend, Mr John Bryan.
Also said to be involved is Mr Frank Pearl (51), a wealthy Washington lawyer with interests in hotels, investment companies and publishing.
They are believed to have met the duchess - best known in the Us as in Britain, as Fergie - through her US charity work.
The duchess, with her children Princess Beatrice (7) and Princess Eugenie (5), flew to Washington on Thursday to finalise the deal after protracted talks over a number of weeks.