Royal inquiry into aftermath of Burrell case

St James's Palace responded last night to the mounting pressure for action over the controversies surrounding the Royal Family by announcing an internal inquiry into issues arising from the collapse of the Paul Burrell trial.

Although the move was intended to take the heat out of a situation that has seen the most negative publicity for the Royals since the death of Diana, Princess of Wales, it fell short of the independent judicial investigation that some reports suggested yesterday was being discussed by Buckingham Palace and the Prince of Wales.

The inquiry will be conducted by the Prince's private secretary, Sir Michael Peat. He will be assisted by a leading criminal barrister, Edmund Lawson QC. Their report is expected to be completed by Christmas.

In an unprecedented series of interviews with the BBC and the Press Association, Sir Michael said the four main areas to be examined by the inquiry would be: whether there was an improper cover-up of the allegations that a key aide to Prince Charles raped a royal valet; whether there was anything improper in the conduct of the Prince's household over the collapse of the Burrell trial; whether any official gifts had been sold; and whether any members of staff had been in receipt of improper benefits or payments.

Sir Michael denied that the inquiry would be "a complete whitewash", saying that anyone who thought that "doesn't know me very well". He added: "The Prince of Wales has instructed me to undertake this inquiry without fear or favour, and there is a very eminent QC on the inquiry team who is well known for his intellect and courage."

The Queen would not be interviewed, Sir Michael said, because he already knew her side of the story.

The announcement of the inquiry followed a series of meetings on Monday of the most senior advisers to the Royal Households, including Sir Michael and Sir Robin Janvrin, the Queen's principal private secretary.

Sir Michael also rejected as "implausible" speculation that a conspiracy, designed to save the Royal Family embarrassment over anything Mr Burrell might disclose in the witness box, lay behind the events that ended the trial.

But, importantly, he did not rule out the idea that an external inquiry into the affair could take place at a later date.