Today's Papers

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THE Princess of Wales plagued a married friend with anonymous phone calls, according to the News of the World. The paper reports that police have informally interviewed the princess over calls to the London home of Oliver Hoare after they were traced to her private apartment in Kensington Palace. The investigation, started several weeks ago after reports of 'annoying' calls to Mr Hoare and his wife, indicated that some were made from the princess's mobile phone. Mr Hoare, 48, a long-time friend of both the Prince of Wales and Diana, agreed to drop the complaint after confronting her and holding discussions with the police, says the paper.

The KGB bugged Princess Margaret's conversations in a bid to compromise the Royal Family, the Sunday Express reports. The Kremlin's top electronic surveillance expert, Col Vadim Goncharov, hid microphones in the princess's rooms during an an official visit to Copenhagen in 1964.

According to the Sunday Telegraph, senior Tories are planning to wind down the Young Conservatives as part of a plan to reverse the fall in the number of young activists. The initiative, which is causing concern to some on the right of the party, involves restructuring the party machine to boost membership in universities and colleges.

Big business has given more than pounds 50,000 to a company formed by Labour frontbench spokesman Barry Sheerman to promote the interests of manufacturing industry, according to the Observer. The money, paid in the past month, has come from firms including British Gas, Ford, Hanson, ICI, MFI, Marks & Spencer and Shell UK.

The Mail on Sunday reports that nuclear blackmailers have threatened to set off atomic bombs and release radioactive substances in Europe, according to a secret police report. The 16-page report, produced by the German police, says detectives are investigating two cases of attempted blackmail involving nuclear substances.

The Sunday Times reports that the Iranian government has given the IRA millions of pounds through a Channel Islands bank account set up by a high-ranking Hezbollah agent and passed to the terrorists via sympathetic businessmen. Details have been revealed by Dr Mir Ali Montazam, first secretary at the Iranian Embassy in London for six years.

Police investigating a pounds 250,000 ticket-touting scandal at Nottingham Forest have arrested a member of the Premier League club's staff, The People reports.

Dozens of nuclear warheads lie unguarded in a disused Russian airforce base outside the Latvian city of Riga, the Sunday Mirror reports.