As part of her cost cutting, the Queen reconsidered giving cash bonuses to the two hundred employees at Windsor Castle who had helped save her treasures during the 1992 fire. Instead of money, she offered them a free tour of the castle library. Few accepted.

The royal family remained aloof from the debate about their future. Lord Charteris, the Queen's former equerry, said the idea of a republic never penetrated the Palace walls. Lady Longford, a friend of the Queen, disagreed. "They have been perfectly open about it," she said. As far back as 1966, when they toured Canada, they discussed the possibility of Britain's becoming a republic. If anything, they treated the subject lightheartedly. "We'll go quietly," the Queen said. Philip joked that he could be packed in a day, but she would need several weeks. "Too d.a.m.n many corgis," he quipped. Walking into her office at Buckingham Palace one afternoon, he looked out the window and asked: "Have they got up the guillotine?"

The Queen, too, used humor in addressing a Commonwealth conference in Cyprus. She had arrived on the island in the fall of 1993 aboard her royal yacht. After dinner she relaxed with her guests. When she said she wouldn't wager on a similar Commonwealth conference in the next forty years, they knew she had studied the recent polls in Canada, Australia, and New Zealand that showed growing support for independence from the Crown. "The only safe bet is that there will be three absentees-Prince Philip, Britannia, Britannia, and myself," said the Queen without emotion. "But you never know.... Nowadays, I have enough experience, not least in racing, to restrain me from laying any money down on how many countries will be in the Commonwealth in forty years' time, who they will be, and where the meeting will be held." and myself," said the Queen without emotion. "But you never know.... Nowadays, I have enough experience, not least in racing, to restrain me from laying any money down on how many countries will be in the Commonwealth in forty years' time, who they will be, and where the meeting will be held."

Within the royal family, the Queen did not need a trackside tip sheet to see who was running best in the mud and who was showing signs of weak knees. She read the opinion polls, which showed that her estranged daughter-in-law was winning the race while her son was still stuck in the paddock.

Charles stumbled along, trying to redeem himself, but even as he tried to make light of his predicament, he sounded more self-pitying than self-deprecating. As he autographed a soccer ball for youngsters at a London recreation center, he told them: "Now you've got my name on it. You can kick it all over the place." He gave up polo entirely; he cut ribbons, laid wreaths, inspected factories, visited troops in Bosnia, toured a former concentration camp in Poland.

But he could not compete with his wife, who radiated in the press like a movie star elevated to sainthood. As one headline put it: "The Princess Bids Halo and Farewell to Her Critics." She toured hospices and orphanages and Red Cross feeding centers. In India she touched untouchables. In Nepal she hugged lepers. She embraced amputees and ladled soup for starving refugees. People turned out in droves to see her, mesmerized by her warmth, her beauty, her glamour.

Although Charles could not draw crowds like Diana, his equerry said he was well rid of her. He said the Prince had grown more confident because he was no longer saddled with the Princess and subjected to "superficial handshaking tours." Rather than belittle Diana, the equerry might have been better advised to announce that Charles had lashed himself to the steps of Canterbury Cathedral to do penance for his adultery, as his ancestor did to atone for the murder of Thomas a Becket. The public adored the Princess, and she reveled in the adulation.

She was regularly photographed visiting homeless shelters and talking to battered wives. She seemed especially taken with one woman, who admitted pouring gasoline on her husband and setting him afire as he slept. The woman, who said she had been driven insane by her husband, pleaded not guilty to murder and was freed. The Princess hugged her and said, "You have been so brave." Later, as Charles visited an inner-city housing project, he shook hands with a woman in the crowd who said she had met his estranged wife. He grimaced. "You lived to tell the tale, did you?"

Measured in newsprint, there was no contest between Diana and Charles. A media research firm measured the number of column inches allotted to each during the first six days of March 1993: Diana scored 3,603 inches of newsprint, Charles only 275.

One of Britain's prizewinning feature writers, Lynda Lee-Potter, advised the Prince to ignore the tally and stay out of the fray. "He should not play his wife's games," she wrote. "He should remain uncomplaining and dignified." She said Diana had declared open war on her husband. "She desires to be utterly vindicated. She yearns to diminish Prince Charles. She wants revenge, not merely justice. But the continuing public battle she plans can only take place if her husband and his family retaliate. If they do that, they may be defeated. If they refuse to fight, they will surely win."

By then the Princess had the Palace on the run. They appeared to support her charity work, but behind the scenes they sabotaged her. They kept her from becoming president of the British Red Cross and would not recommend her as head of UNICEF. They allowed her to make a few speeches but winced when she spoke about bulimia and depression. The courtiers, all middle-aged men, did not see her declarations of victimhood as a plus for a female whose poor self-image once made her feel as if she deserved to be dysfunctional. The courtiers said her speeches about self-esteem were silly and self-indulgent.

They sputtered with indignation when she spoke out on issues, especially AIDS, which they said were not in her domain. Diana paid no attention. She told a national AIDS conference: "It is doubly difficult to deal with AIDS in a country like Britain, where there is still an understandable reluctance to have frank and open discussions on emotional issues. We need to learn how to break through this barrier of inhibition...."

When the Princess was asked to deliver the prestigious Richard Dimbleby Lecture on the BBC to discuss her views on AIDS, the courtiers finally took action. The invitation was withdrawn.

What they did not take away from her, Charles did. He wanted her removed from public life with no access to the Queen's Flight, the royal train, the royal yacht, or any other privileged form of royal travel. In fact, he wanted her to be shorn of all royal trappings. But the Queen worried about isolating Diana and the effect it might have on her troubled mind. The monarch dispatched the Prime Minister to visit Kensington Palace to rea.s.sure the Princess that she had a continuing part to play. Her Majesty then authorized publication of the Prime Minister's visit in the Court Circular so the public and Diana would think she was still considered valuable.

The Palace allowed her to make a few goodwill tours, but, instructed by Charles, they cut back the honors she had once been accorded. No more high-level courtiers or official ladies-in-waiting. Her airline seating arrangements were downgraded from first cla.s.s to business cla.s.s, and the Palace banned playing the National Anthem upon her arrival in Nepal. The tabloids, which revered her, reported the petty slights and wrote editorials calling for more dignified treatment for the mother of the future King.

But the courtiers were dropping the curtain on the star and inching her off stage. She was no longer invited to appear with the royal family at public celebrations like Trooping the Color. When the Queen did not extend an invitation to Royal Ascot in 1993, Diana took her boys to Planet Hollywood. The next day's newspapers showed a doting mother in blue jeans romping with her children alongside a stiff picture of the royal family waving from their carriages. One tabloid headline captured the contrast: "The Hugger and the High Hats."

Nor was Diana invited to the Queen Mother's birthday party in August of 1993. So she took her children go-carting. Again, her picture frolicking with her sons appeared on the front pages. When the Queen went to Hungary, her first visit to a postcommunist state, Diana went to Paris to shop. The monarch's visit received minor coverage while Diana's was given the front pages. An Evening Standard Evening Standard editorial wondered: "Might it not be appropriate to place the Princess under house arrest when visits abroad by her less newsworthy royal superiors are imminent?" editorial wondered: "Might it not be appropriate to place the Princess under house arrest when visits abroad by her less newsworthy royal superiors are imminent?"

Intent on being seen as an angel of mercy, Diana had wanted to attend the memorial service for two children killed by an IRA bomb in the Cheshire town of Warrington. But the Palace said no and sent Prince Philip instead. Diana let the Palace know that she understood how to play hardball: she phoned the grieving mothers of both bomb victims.

"I want to be there with you and give you a hug," she told them, "but I can't because they are sending my father-in-law."

Even Diana's critics felt the Palace looked petty and spiteful.

She saw the royal family siding with her husband and arrayed against her. He viewed it differently, saying he received more support from his friends than from his family. His father kept in contact by sending messages through his laptop computer, not all of which were appreciated. "Ah, yes, the Duke and his helpful bulletins," recalled one of Charles's aides. His arched eyebrows indicated the communications were unwelcome. The aide said nothing about the Queen, who maintained a cool distance from her heir. Sometimes the courts of mother and son clashed like fighting c.o.c.ks.

"I nearly went mad trying to accommodate them," recalled the interior designer Nicholas Haslam. "The compet.i.tion between the two circles is fierce and strangulating. There is no regard for the bond of mother and son: none whatsoever. It's a pitched battle: Her Majesty the Queen versus upstart Prince, who is the King-in-waiting....

"I came into Buckingham Palace in 1993 at the bidding of Prince Charles, who wanted me to do the decoration for a dinner he planned for the Royal Shakespeare Theatre. I surveyed a few rooms with one of the Queen's men and asked that the chairs be rearranged for a softer, more hospitable setting.

" 'Absolutely not,' said the Queen's man. 'Her Majesty would not approve.'

"I asked another man for a.s.sistance with the lighting.

" 'Her Majesty likes the lights as they are.'

"I inquired about moving some tables, saying that the Prince was having a dinner for three hundred people and we needed a bit more s.p.a.ce.

" 'Her Majesty prefers the tables to remain in place.'

"I was nearly around the bend with frustration," said the decorator. "I couldn't address the subject of candles because 'Her Majesty does not approve of dining by candlelight.'

"It was a disaster trying to represent Charles in his mother's domain, but I finally managed to pull it all together for him, and he was very gracious. He said that Buckingham Palace had never looked lovelier than it did that evening. Of course, I aged fifty years trying to negotiate arrangements with all the Queen's men...."

That evening, with his mother not in residence, Charles flew the Prince of Wales flag from Buckingham Palace. He endeared himself to his guests with his after-dinner remarks. "I've become quite familiar with the works of Shakespeare in the last year," he said. "I've lived through The Merry Wives of Windsor, Love's Labours Lost, The Merry Wives of Windsor, Love's Labours Lost, and and The Taming of the Shrew. The Taming of the Shrew.... It's about time for All's Well That Ends Well. All's Well That Ends Well." He brought down the house.

On occasion, Diana, too, poked fun at her plight. While visiting a London hostel for battered wives, she sat in on a therapy session and listened to the women talk about rebuilding their lives. When she was asked if she wanted to join in, she flapped her blouse and fanned herself: "I have a hot flush coming on."

Her regular tabloid press pack enjoyed her sly levities, especially when she targeted their counterparts in the upmarket press. "Oh, you're from the Financial Times? Financial Times?" she said to one man. "We took that at home. Yes, I believe we used to line the budgie's cage with it." One of her regular reporters complimented her on how fit she was looking. She startled the group by asking if they remembered her when she was younger and had had a large bosom.

"Oh, yes, ma'am, and weren't those the good old days," joked her favorite photographer, Arthur Edwards. He had covered her since she was nineteen and waiting for the Prince of Wales to propose. During that period she had ventured out the front door of her apartment at Coleherne Court and burst into tears when she found a horde of press men blocking her car. Edwards had barreled through the mob to help her. "Don't let them see you cry," he'd advised. "It's Queen Di for you, and when you finally get the job, it's Sir Arthur for me!"

After that, Diana rewarded the tabloid photographer with her sweetest smiles. When he fell ill, she took him medicine. "She calls me by my Christian name and has done [so] from the beginning," he said. "Prince Charles still calls me Mr. Edwards and is very formal. I think in this age it is out of place."

The Sun Sun photographer did not flatter himself about why the Princess courted him. "The reason is most likely that thirteen million readers will see her at her gorgeous best," he said. "Funnily enough, it is always the papers with the highest circulation to whom Diana is the most cooperative." photographer did not flatter himself about why the Princess courted him. "The reason is most likely that thirteen million readers will see her at her gorgeous best," he said. "Funnily enough, it is always the papers with the highest circulation to whom Diana is the most cooperative."

Whenever the Princess appeared in a spectacular new gown, the photographer hollered approvingly, "You look lovely tonight, ma'am." When she wore something she had worn before, he complained. "Oh, not that one again."

She shot back, "Arthur, I suppose you'd you'd prefer it if I turned up naked." prefer it if I turned up naked."

He countered, "Well, at least I could get a picture of you in the paper that way."

"I'll tell the jokes, Arthur," she said reprovingly.

He later used her retort as the t.i.tle for his book of royal reminiscences. Diana let him know that she did not appreciate the exploitation. Withholding her usual smile, she asked, "How many books have you sold, Arthur?"

He smiled sheepishly. "I think you are wonderful, ma'am. I would never do anything to harm you."

Diana's father, the late Earl Spencer, once called her "pure steel inside," and Arthur Edwards occasionally felt her jabs. Commenting on a new hairstyle, he said if her hair got any shorter, she would look like Sinead O'Connor, the Irish pop star who shaves her head.

"At least I've got some hair," said Diana, looking at the photographer's bald head.

When she felt offended, reporters felt her sting. One young woman was pointedly ignored by the Princess when she wrote that Diana had worn comfortable but dowdy clothes on a royal tour. On the return flight home, Diana eyed the writer's ankle-length skirt and said, "She won't last long." Hearing the Princess discuss plans for making other overseas visits, the young reporter inquired, "Oh, more trips?" Without smiling, Diana said, "More trips and more dowdy clothes."

Usually Diana courted the media, especially after her separation, when she and her husband competed for coverage and used the press to take a poke at each other. Both had recruited national newspapers to carry his and her versions of their marital rifts. She received more sympathetic coverage because she befriended reporters: she gave c.o.c.ktail parties for those who covered her royal tours, sent them notes when she was especially pleased by their stories, and remembered their birthdays. She regularly briefed the Daily Mail Daily Mail's royal correspondent Richard Kay, who was photographed whispering with her in a car. She invited media baron Rupert Murdoch to lunch at Kensington Palace and sent similar invitations to television personalities Oprah Winfrey and Barbara Walters. They all accepted. She ingratiated herself with Katharine Graham, chairman of The Washington Post Company, by visiting her in Martha's Vineyard and Washington, D.C. Diana also attended parties sponsored by People People magazine, magazine, Harper's Bazaar, Harper's Bazaar, and and Vanity Fair. Vanity Fair. She posed for She posed for Vogue. Vogue. She was so accommodating to the photographers who accompanied her on ski vacations with her children that supporters of Prince Charles accused her of using the boys to look motherly at his expense. He countered with more exotic vacations for the children in Italy and on the Greek islands. She topped him by taking the boys to Disney World in Florida. Charles was determined not to be outdone. When he went with his sons to Balmoral for Easter, he gave them a set of soccer goalposts, a garden badminton set, two mountain bikes, a trampoline, guns for shooting rabbits and crows, and two minimotorbikes that cost $3,000 apiece. But even his staged photo opportunities with his sons could not overcome the popularity gap. She was so accommodating to the photographers who accompanied her on ski vacations with her children that supporters of Prince Charles accused her of using the boys to look motherly at his expense. He countered with more exotic vacations for the children in Italy and on the Greek islands. She topped him by taking the boys to Disney World in Florida. Charles was determined not to be outdone. When he went with his sons to Balmoral for Easter, he gave them a set of soccer goalposts, a garden badminton set, two mountain bikes, a trampoline, guns for shooting rabbits and crows, and two minimotorbikes that cost $3,000 apiece. But even his staged photo opportunities with his sons could not overcome the popularity gap.

"The big trouble with some of the royals is that they treat the press like telegraph poles," said Arthur Edwards. "They just walk round them and totally ignore them. That has been one of the reasons for the bad publicity they get.... Diana has gone more than halfway to stop that."

She became the most photographed woman in the world, and photographers made thousands of dollars taking her picture. She was reminded what a valuable commodity she had become after receiving a call from Lady Elizabeth Johnston, a friend of the royal family, who lived near Great Windsor Park. She had heard from her hairdresser that Diana was being secretly photographed during her weekly workouts at the gym. Lady Johnston warned the Princess that the owner of the gym was the Peeping Tom.

"Oh, G.o.d," said Diana. "Am I decent?"

"As far as I know, you are."

"That's a relief. My mother-in-law would die."

The next day Diana asked her detective, Ken Wharfe, to check out the story. He talked to the owner of L.A. Fitness, Bryce Taylor, who denied taking pictures of the Princess.

"For chrissakes," said Taylor. "She's been coming here almost three years now. You're always with her. Have you ever seen a security problem?"

The detective satisfied himself by walking around the club. He did not inspect the premises thoroughly, but even if he had, he might not have noticed the hole cut in the ceiling panel.

Six months later a sneak shot of Diana appeared on the front page of the Sunday Mirror Sunday Mirror in spandex cycling shorts and a snug turquoise leotard. The newspaper had agreed to pay $250,000 for photos that showed her pushing a shoulder press with her legs spread wide apart. The poses were unflattering, even for a young woman as beautiful as the Princess, and the harsh angles emphasized her pelvis, revealing every bulge and fold and crease around her hips. in spandex cycling shorts and a snug turquoise leotard. The newspaper had agreed to pay $250,000 for photos that showed her pushing a shoulder press with her legs spread wide apart. The poses were unflattering, even for a young woman as beautiful as the Princess, and the harsh angles emphasized her pelvis, revealing every bulge and fold and crease around her hips.

Looking at the voyeuristic photos made some people feel as if a dirty trick had been played on an unsuspecting maiden. Although Diana had borne children and taken lovers, she still retained an aura of demure innocence. People had seen photos of her plunging cleavage and her high kicks across a stage in a slinky satin slip; they had even seen her pregnant in a bikini. But they had never seen her looking coa.r.s.e.

"It was a crotch shot, plain and simple," said one magazine editor. "Undignified and disgusting."

The royal biographer Brian Hoey said the pictures would never have been published in Britain if Diana had not been separated from Prince Charles. "She is now treated by the media with the same sort of disdain and contempt as film stars or... Fergie."

Diana felt bruised and abused. "I burst into tears when I saw that photograph," she said. "I felt insulted and humiliated and violated...."

The Palace and Parliament rallied to her side, deploring the invasion of her privacy. Her husband felt she got no more than an exhibitionist deserved, but her father-in-law urged her to sue. The furor over the pictures dominated the media for days, with politicians demanding press curbs and publishers protesting. The Mirror Group, the owner of the offending paper, withdrew from the Press Complaints Commission, and the editor admitted he was a "ratbag." But the gym owner was unapologetic.

"What I did was sneaky, surrept.i.tious, and preplanned," said Bryce Taylor. "I don't make excuses.... It was underhand.... But if I told you I had an absolutely legal scam which didn't hurt anyone and would make you a million pounds, wouldn't you say yes?"

He hired a publicist and contracted with a photo agency to syndicate the eighty-two pictures of Diana he had taken. The Princess's lawyers obtained an injunction that froze the money Taylor was supposed to receive. With the full support of the Queen, Diana sued the newspaper and the photographer. She declared in sealed court doc.u.ments: I was shocked when I saw photographs of myself exercising at the club as published in The Sunday Mirror on 7th November 1993 and The Daily Mirror on 8th November 1993. I was unaware that any such photographs had been taken and had at no time given my consent to being photographed at the club in any circ.u.mstances. I considered Mr. Taylor's conduct to be a betrayal of the trust I had vested in him. I was shocked when I saw photographs of myself exercising at the club as published in The Sunday Mirror on 7th November 1993 and The Daily Mirror on 8th November 1993. I was unaware that any such photographs had been taken and had at no time given my consent to being photographed at the club in any circ.u.mstances. I considered Mr. Taylor's conduct to be a betrayal of the trust I had vested in him.

The Princess intended to create a privacy law in England that did not exist and she was prepared to testify in court. "I will do whatever it takes to achieve justice," she said. She issued a statement, expressing her grat.i.tude to everyone who had condemned the actions of the Mirror newspapers. Within weeks the disgraced gym owner went broke trying to defend himself. But under Britain's legal aid system, he now qualified for expert counsel, because he was an indigent defendant in a case that sought to establish a new law. So he pet.i.tioned the court, and the presiding judge appointed one of the country's best-known lawyers, Geoffrey Robertson QC (Queen's Counsel), to represent him.

Suddenly, what had looked like a case weighted in favor of the Princess now became even odds. Robertson was well matched to the skills of Diana's lawyer, Anthony Julius of the law firm Mischon de Reya. The gym owner felt especially fortunate because Robertson was an Australian, known to be a republican, and not impressed by royalty. To Robertson, the Princess of Wales was merely a rich plaintiff named Diana Windsor. The sealed court doc.u.ments show that he referred to her as Mrs. Windsor; Anthony Julius referred to her as HRH the Princess of Wales.

Within days Robertson's defense team had deposed employees who swore that the Princess actively encouraged attention in the gym by exercising in front of a window so the public could see her better. Several employees said she flirted openly with male club members and wore provocative, skintight clothes to show off her body. To them the Princess looked like a pickup.

Diana's lawyers countered that she wore appropriate exercise attire every time she went to the gym, but no matter what she wore, she was ent.i.tled to privacy. They produced a letter from Bryce Taylor dated September 25, 1990, promising to protect her from publicity.

His lawyers responded that by accepting a three-year membership as a gift, Diana was not ent.i.tled to the privileges of someone who had paid. They argued that by freeloading, she had forfeited her rights to privacy, especially when she agreed to be weighed and measured. They produced the personal data form she herself had filled out using the name of Sally Hughes, her former secretary:

Blood Pressure: .

120/60 120/60.

Height centimeters: .

183 183.

BMI (Body Ma.s.s Index) .

60.5 60.5.

Girth measurements: .

Shoulder: .

40" 40".

Chest: .

35" 35".

Right arm: .

9 1/7" 9 1/7".

Waist: .

27" 27".

Rt. thigh: .

22" 22".

Calf: .

13" 13".

The Palace became dismayed when they learned that some of Diana's sworn statements did not jibe with those of her personal detective. When Ken Wharfe was scheduled as a defense witness, the detective was swiftly transferred out of her service. Then Diana's chauffeur decided he wanted to work for Prince Charles. Diana had not been consulted about either move. Losing both men, who had been in her service for several years, left her shaken. Hours after being informed of the transfers, she arrived at a theater gala with red, puffy eyes. She stayed less than an hour before she ran out sobbing. The Palace said she was suffering from a migraine.

The next day's newspapers carried stories about "the tormented mind of a princess" and speculated she was suffering from a recurrence of bulimia. The employees' transfers were interpreted in the press as Palace plots to undermine her stability.

She tried to put the matter to rest three days later in a speech to charity workers: "Ladies and gentlemen, you are very lucky to have your patron here today," she said. "I am supposed to have my head down the loo for most of the day.... I am supposed to be dragged off the minute I leave here by men in white coats."

Her audience applauded her good humor. "If it is all right with you," she concluded, "I thought I would postpone my nervous breakdown to a more appropriate moment." Smiling, she added, "It is amazing what a migraine can bring on."

By then the Queen had reconsidered her support for Diana's lawsuit. She questioned whether the emotional Princess could stand up to tough cross-examination. Further, she was troubled to learn that Diana's former lover James Hewitt was a houseguest of Geoffrey Robertson. The lawyer indicated he might subpoena Hewitt to establish just how averse the Princess really was to invasions of her privacy. The Queen was disconcerted to read Hewitt's comment to Robertson's wife, Kathy Lette, who asked him what the Princess was really like: "She's got bad breath," said Hewitt, "and she wants s.e.x all the time."

The press was salivating over the prospect of a trial, and more than nine hundred reporters had applied for credentials in a courtroom with seventy-five seats. The Queen was concerned about the international media hoopla and did not want to see a member of the royal family take the witness stand. She recommended the case be settled out of court.

An overture was made to Bryce Taylor, but without a trial he would no longer be eligible for legal aid and would have to pay his own legal fees. So he had no incentive to settle. Now bankrupt, he was relying on a sensational trial to sell world rights to his story. The press agent he had hired said, "For him, it was always a matter of money-only money."

The Queen's private secretary contacted Peter, Lord Palumbo, a close friend of Diana's, to say that the Queen wanted to spare the Princess the ordeal of taking the stand. Lord Palumbo understood. Although Diana wanted to proceed, the Queen did not. So Lord Palumbo negotiated with a few of the lawyers involved and worked out a confidential arrangement that benefited everyone: the Princess looked victorious; the newspapers avoided regulation; the Peeping Tom escaped poverty. The basic terms: 1. The Mirror Newspaper Group agreed to issue a public apology, pay $40,000 in damages to charity in Diana's name, and not to write about the case. 1. The Mirror Newspaper Group agreed to issue a public apology, pay $40,000 in damages to charity in Diana's name, and not to write about the case. 2. Bryce Taylor agreed to give Diana the photographs and negatives and issue a public apology. In exchange for agreeing never to discuss the case, he was to receive secret monthly payments totaling $450,000 from a blind trust. He did not know who provided the money but speculated on King Juan Carlos because the blind trust was incorporated in Spain. The final payment was made in June 1996. The trust also was to pay Taylor's taxes and his legal fees. 2. Bryce Taylor agreed to give Diana the photographs and negatives and issue a public apology. In exchange for agreeing never to discuss the case, he was to receive secret monthly payments totaling $450,000 from a blind trust. He did not know who provided the money but speculated on King Juan Carlos because the blind trust was incorporated in Spain. The final payment was made in June 1996. The trust also was to pay Taylor's taxes and his legal fees. 3. Part of Diana's legal fees were to be paid by the money that had been frozen by the court's injunction; the fees not covered by that money were waived by Lord Mischon's law firm. 3. Part of Diana's legal fees were to be paid by the money that had been frozen by the court's injunction; the fees not covered by that money were waived by Lord Mischon's law firm. 4. All parties signed confidentiality agreements not to divulge the details. 4. All parties signed confidentiality agreements not to divulge the details.

When the settlement agreement was announced, the News of the World News of the World sighed in relief: "The Royal Family Is Safe." A rash of stories in London's other newspapers crowed mistakenly about "Di's smashing victory." sighed in relief: "The Royal Family Is Safe." A rash of stories in London's other newspapers crowed mistakenly about "Di's smashing victory."

"I suppose we could've won," said a Mirror editor, "but it would've cost too much. Not in terms of cash, but in hatred from the public, especially from our downmarket readership, which adores Diana."