THE PRINCE and Princess of Wales last night moved closer to divorce. In a dramatic development, following almost three months of deadlock in negotiations, it was confirmed that Prince Charles has offered the princess terms for a settlement.
It is expected that the princess and her lawyers will take some days to consider the terms, widely predicted to be generous. Reports over the past few days have indicated that the prince, possibly with assistance from Queen Elizabeth, is proposing a financial settlement of between £15 and £20 million.
If the terms are acceptable to the princess it is believed a decree nisi, on the grounds of more than two years' separation, could be granted before the end of this month and ahead of the couple's 15th wedding anniversary on July 29th.
A decree absolute would take a further six weeks. But no official announcement is expected until next week's visit by President Nelson Mandela of South Africa is over.
Princess Diana was last night guest of honour at a charity ball at the Dorchester Hotel in London for her friend, Imran Khan. Sources close to the prince and princess declined to reveal details of the proposed settlement or to comment on Prince Charles's proposals concerning future access to the couple's children or Diana's retention of her HRH title.
However, it is understood Queen Elizabeth believes Diana should retain her senior royal ranking, as mother of a future king. And it is understood the prince has accepted her wish to continue to live in her apartments at Kensington Palace.
The princess's media adviser, Ms Jane Atkinson, said: "I can confirm that a response from the prince was received this evening." She declined to comment further.
Neither side is commenting on speculation surrounding the force following a request from Queen Elizabeth that the negotiations should be confidential.
However, it now seems likely that the prince will offer a clean break settlement, although he would have preferred to pay "dripfeed annual allowance".
The princess who celebrated her 35th birthday on Monday, is thought to be ready to move quickly and had expressed her frustration to the queen at delays.
If the prince offer a clean break cash settlement, he will need financial help from the queen or may seek a multi million pound loan.
Although the heir to the throne is a wealthy man, he does not have the liquidity necessary to make a £15 million or £20 million pay off.
His annual income of almost £5 million from the Duchy of Cornwall leaves him with about £1.5 million for personal expenses after deducting nearly £2.5 million in official expenditure and £1 million tax.
The Prince, who is Duke of Cornwall, cannot sell off any duchy assets as this wealth is, in effect, held in trust by him for future heirs to the throne.
His personal portfolio of stocks and shares, thought to be worth more than £2 million, would not finance the divorce.