Prince Harry has apologised for using offensive language to describe a member of his army platoon.
Prince Harry has apologised for using offensive language to describe a member of his army platoon.
The News of the World said it had a video of the army lieutenant calling a colleague a "Paki" while pretending to make a phonecall to the Queen.
The News of the World has published footage in which the prince calls one of his Sandhurst colleagues a "Paki" in commentary he made over filming.
A statement from St James's Palace said he did so three years ago as a nickname about a friend and without any malice.
St James's Palace said he used the term three years ago as a nickname about a friend and without any malice.
The prince had to apologise in 2005 for wearing a swastika armband to a party, which offended many Jewish people.
The prince had to apologise in 2005 for wearing a swastika armband to a party, which offended many Jewish people.
The video reportedly shows Harry while still an officer cadet at Sandhurst military academy.
The video shows Harry while still an officer cadet at Sandhurst military academy.
It was filmed in front of other cadets at an airport departure lounge as they waited for a flight to Cyprus to go on manoeuvres.
It was filmed in front of other cadets at an airport departure lounge as they waited for a flight to Cyprus to go on manoeuvres.
The newspaper said the prince had called the soldier "our little Paki friend".
The newspaper said the prince had called the soldier "our little Paki friend".
'Extremely sorry'
'Extremely sorry'
In a separate incident, Prince Harry is heard calling another officer cadet a "raghead", the News of the World said.
In a separate incident, Prince Harry is heard calling another officer cadet a "raghead".
During the faked call to the Queen, as the Commander in Chief of the British Army, the prince says, "Granny I've got to go, send my love to the Corgis and Grandpa."
During a faked call to the Queen, as the Commander in Chief of the British Army, the prince says, "Granny I've got to go, send my love to the Corgis and Grandpa."
He finishes saying: "I've got to go, got to go, bye. God Save You ... yeah, that's great." Bullying and racism are not endemic in the Armed Forces MOD spokeswoman
He finishes saying: "I've got to go, got to go, bye. God Save You ... yeah, that's great." Bullying and racism are not endemic in the Armed Forces MOD spokeswoman
A statement from St James's Palace said: "Prince Harry fully understands how offensive this term can be, and is extremely sorry for any offence his words might cause.
A statement from St James's Palace, with regards the term "Paki" said: "Prince Harry fully understands how offensive this term can be, and is extremely sorry for any offence his words might cause.
"However, on this occasion three years ago, Prince Harry used the term without any malice and as a nickname about a highly popular member of his platoon.
"However, on this occasion three years ago, Prince Harry used the term without any malice and as a nickname about a highly popular member of his platoon.
"There is no question that Prince Harry was in any way seeking to insult his friend."
"There is no question that Prince Harry was in any way seeking to insult his friend."
The statement continued: "Prince Harry used the term 'raghead' to mean Taleban or Iraqi insurgent."
The statement continued: "Prince Harry used the term 'raghead' to mean Taleban or Iraqi insurgent."
A man told BBC Radio Five Live the cadet concerned was his nephew, Ahmed Raza Khan, from Pakistan, who served with Prince Harry at Sandhurst for one year as a Commonwealth cadet.
Iftikhar Raja said his nephew, now a captain in the Pakistani army, would have risen above such terms and had not mentioned the incident to his family.
Mr Raja said: "At no time he told us that he was called Paki or he was a good friend of Prince Harry, I mean, although they served together that is true.
"But I myself am a British subject, I am proud to be British and if someone called me Pakistani I would be proud to be called that, but Paki is definitely a derogatory remark."
He added: "We expect better from our Royal Family on whom we spend millions and millions of pounds for training and schooling."
Captain Ahmed Raza Khan graduated with Harry from Sandhurst in 2006 receiving a special award from the Queen for being the best overseas officer cadet.
'Disturbing allegations'
'Disturbing allegations'
BBC Royal Correspondent Peter Hunt said it is an embarrassing episode for the prince, and that it was because the comments made in private had now become public that a statement had been issued.
BBC Royal Correspondent Peter Hunt said this was an "embarrassing episode" for the prince, and it was because comments made in private had become public that a statement had been issued.
He added that St James's Palace had been at pains to place Prince Harry's words in context and privately suggesting the News of the World had blown it out of context.
He added St James's Palace had been at pains to place the prince's words in context.
Prince Harry's aides insisted Captain Ahmed and Harry "were friends, members of a close knit platoon who used nicknames and the prince was not being malicious", he said.
"However, whatever the context, royal officials must know the damage has been done, " said our correspondent.
A spokeswoman for the Ministry of Defence said: "Neither the Army nor the Armed Forces tolerates inappropriate behaviour in any shape or form.
A spokeswoman for the Ministry of Defence said: "Neither the Army nor the Armed Forces tolerates inappropriate behaviour in any shape or form.
"The Army takes all allegations of inappropriate behaviour very seriously and all substantive allegations are investigated.
"The Army takes all allegations of inappropriate behaviour very seriously and all substantive allegations are investigated.
"We are not aware of any complaint having been made by the individual. Bullying and racism are not endemic in the Armed Forces."
"We are not aware of any complaint having been made by the individual. Bullying and racism are not endemic in the Armed Forces."
A spokeswoman for the Equality and Human Rights Commission said: "These appear to be disturbing allegations and we will be asking the MoD to see the evidence, share that evidence with us and their plans for dealing with it.
A spokeswoman for the Equality and Human Rights Commission said: "These appear to be disturbing allegations and we will be asking the MoD to see the evidence, share that evidence with us and their plans for dealing with it.
"We will then consider what further action might be necessary."
"We will then consider what further action might be necessary."
But Ingrid Seward, the editor of Majesty magazine and a biographer of Prince Harry and Prince William, said there was a danger of over-reaction.
She said: "I think it was a private video, he was talking about a friend of his, they were having fun and they were calling each other nicknames and I think it's been taken out of context.
"Yes, it would be very offensive if Harry went around calling people Pakis in a racist way but this was not meant, you know, it was meant more of a nickname.
"I mean, Harry's mates call him Ginge or Ginger - that could be equally offensive to people with red hair."
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