I'm at centre of servant claim, says Charles

BRITAIN'S Prince of Wales last night dramatically named himself as the senior Royal accused of involvement in an allegedly compromising incident witnessed by a servant.

Prince Charles dismissed the allegation as untrue and insisted the alleged incident did not even take place.

A forthright statement on his behalf said: "In recent days, there have been media reports concerning an allegation that a former Royal Household employee witnessed an incident some years ago involving a senior member of the Royal Family. The speculation needs to be brought to an end.

"The allegation was that the Prince of Wales was involved in the incident. This allegation is untrue.

"The incident which the former employee claims to have witnessed did not take place.

"There is a particular sadness about this allegation because it was made by a former Royal Household employee who, unfortunately, has suffered from post-traumatic stress disorder and has previously suffered from alcoholism following active service in the Falklands.

"He has, in the past, made other unrelated allegations, which the police have fully investigated, and found to be unsubstantiated." Prince Charles' intervention came after a day of drama at the High Court in London.

Earlier, an injunction banning The Guardian newspaper from naming former royal aide Michael Fawcett was lifted by agreement after the newspaper said it had no intention of repeating allegations about him.

The agreement meant that The Guardian could only publish Mr Fawcett's name in relation to him obtaining an injunction against the Mail on Sunday.

That injunction remains in place although the Sunday paper later claimed success in "relaxing the constraints" of the gagging order.

It is understood, however, that the newspaper is

unlikely to be able to publish its original story this Sunday. Desmond Browne QC, for the former royal aide, told Mr Justice Tugendhat: "The claimant is delighted that it has been possible to reach an agreement with The Guardian which puts an end to these proceedings and saves further costs. "The claimant's concern ever since he learnt of the utterly false allegations the Mail on Sunday intended to publish has been to preserve his reputation and protect his family.

"No other consideration motivated his action against The Guardian.

"As your Lordship knows the injunction against Associated Newspapers granted by Mr Justice McKinnon remains in force and this settlement in no way affects it."

Adrienne Page QC, for Guardian Newspapers Ltd, told Mr Justice Tugendhat: "The Guardian has never intended to publish the Mail on Sunday's allegations and has no reason to believe them to be true."

Guardian editor Alan Rusbridger said after the hearing: "We are extremely pleased with this outcome which has significant implications for freedom of expression."