In the Daily Mail's report, Richard Kay, its royal correspondent, says he was telephoned by a member of her circle and asked to go to a square in Paddington, west London, where the princess would meet him in her car.
The princess, described as 'distraught, at times close to tears', denied she had made the calls and said she had never been questioned by the police about it. She told Mr Kay: 'What have I done to deserve this? I feel I am being destroyed. There is absolutely no truth in it.'
Mr Kay said he put a series of 'tough questions' to her about her relationship with the married art dealer: 'I know everyone wants me to be having an affair and this man fits, but it's not true,' she replied.
Driving around in Kay's car, he says she poured out her anger and unhappiness. 'Somewhere someone is going to make out that I am mad, that I am guilty by association, that the mud will stick,' she said.
The princess added: 'Do you realise whoever is trying to destroy me is inevitably destroying the institution of the monarchy as well?'
Asked whether she had made calls from public phone boxes in Notting Hill and Kensington, she replied: 'You can't be serious. I don't even know how to use a parking meter, let alone a phone box.'