Prince William knew of Paul Burrell's claim

Prince William knew of the claim of the ex-royal butler, Paul Burrell, that he was looking after the possessions of the late princess Diana - months before his trial for theft started and subsequently collapsed.

In a letter dated 19th April 2001, Paul burrell wrote: "I so wish that I could have spoken with you in confidence during the past few months. There is so much to explain. Items which have been taken from me, many of which were given to me for safe-keeping, should be returned to you.

"I know that you realise that I would never betray the trust and confidence which your mother placed in me and that I remain the person you have always known."

A report by Sir Michael Peat makes the disclosure. Prince Charles commissioned the report after the collapse of the trial and reports that gifts to Charles and Diana were given to staff or sold.

Prince Charles was desperate to halt the trial, the report acknowledges. Although the Crime Prosecution Service (CPS) had told his advisers that "no judge in this country would issue a witness summons" to the trial, he was concerned he and Prince William might in fact be called to give evidence at the trial. The CPS told him it was "very, very unlikely" and reassured him that the "trial judge could make an order, banning defence from making references to the contents of letters".

Prince Charles took the view that he could not intervene in the case and that it should be up to the executors of the Princess Diana's estate - her sister and mother - to decide.

Throughout the period leading up to the trial Prince Charles was consistently advised "there should be no intervention". He was "strongly influenced" by police telling his advisers they had evidence of Paul Burrell selling items. In fact, during the trial the police presented no evidence that Mr Burrell had sold any of the items.

No one, the report concluded, expected Queen Elizabeth's disclosure of a meeting with Mr Burrell would lead to the trial's collapse.