Mr Paul Burrell, the former butler to the British royal family, was sensationally cleared of all charges of theft against members of the royal family at the end of the third week of his trial at the Old Bailey in London yesterday, apparently after the unprecedented intervention of Queen Elizabeth.
Following three days of confidential discussions between the prosecution and the judge, Mrs Justice Rafferty, all charges were withdrawn after the queen was said to have recalled that Mr Burrell had informed her he kept some items belonging to Diana, Princess of Wales, for safe keeping.
When the court's decision was announced, Mr Burrell (44), who had denied all charges, fell sobbing into the arms of his defence counsel, Lord Carlile.
Mr Burrell was due to enter the witness box next week and his legal team had warned that his evidence would be "long, detailed and very interesting". There was also speculation that Prince Charles and Prince William might have been called as witnesses by the defence - a prospect which would have sent shudders through the British establishment.
The queen was said to have recalled her meeting with her then footman while driving with Prince Charles and the Duke of Edinburgh to the commemoration service last Friday for the victims of the Bali bombing. The prince said the police should be informed.
Her recollection effectively undermined the prosecution's case that Mr Burrell had hidden 310 items of property belonging to the late princess, Prince Charles and Prince William, at his home in Cheshire without telling any member of the royal family.
Mr Burrell's conversation with the queen was said to have taken place in the weeks after the princess's death in a Paris car crash in August 1997.
Although he mentioned his meeting with the queen in a statement to the police in February, sources indicated last night that the reference was discounted because the statement was part of a psychiatric assessment.
His solicitor, Mr Andrew Shaw, said the former royal butler had not revealed details of the vital conversation out of loyalty to Queen Elizabeth. "It is to his utmost credit, and typical of the man, that it was only this week that he instructed his lawyers as to the full terms of the conversation. Those terms were confirmed by the queen this morning."
According to well-placed sources, Mr Burrell presented his legal team with a contemporaneous note of the conversation yesterday morning - the first indication they had of the contents of the meeting. Had he been put in the witness box, the evidence would have destroyed the prosecution case. "It's a smoking cannon, not a smoking gun," one legal source said.
Police and prosecutors believe it is inconceivable that Mr Burrell, faced with a possible jail sentence if convicted, would not have used the evidence. Scotland Yard is perplexed why he did not disclose details earlier, saving himself a stressful 18 months and saving the British taxpayer an estimated €2.3 million legal bill.
Last night, a leading criminal lawyer, Mr Anthony Scrivener, said: "I think there's more to it than the explanation we've been given. I don't think the story they've put out holds together." The republican Labour member of parliament, Mr Paul Flynn, said: "The most likely reason is that when Paul Burrell came to give evidence he was going to provide information which would be damaging to the royal family."
In a statement, Buckingham Palace said: "The queen was not briefed on either Mr Burrell's defence case or the prosecution case. The prosecution did not ask \ at any stage for details about her meeting with Mr Burrell." Asked whether the case had been halted at her request, the palace said: "Absolutely not. There is no question of the queen interfering in due legal process."
The ardent monarchist Lord St John of Fawsley said: "The queen is aware of her constitutional duty and has a strong sense of justice. As ever, the queen is blameless and emerges with utmost credit." It is understood that Mr Burrell and the executors of the princess's estate are now likely to discuss whether any items will be returned to the estate.