Prince Harry has been embroiled in a fresh race row after a video showing him using racist insults was obtained by The News Of The World.
The newspaper reports that the tape was made by the third in line to the throne during his Army training.
It says the prince is heard calling one Asian trainee "our little Paki friend".
The newspaper reported that the videotape was shot by the prince as he was about to embark on training as a combat helicopter pilot in an airport for their flight to Cyprus.
Panning around the floor, over his bored or sleeping colleagues, he says: "This is luxury. And here is our first example of possibly how to admin yourself (meaning take care of yourself and your kit) in the terminal awaiting the RAF.
It sweeps over his colleagues, with Harry commenting "Now that is bad admin, bad admin" before it tracks over an Asian cadet yards away.
"Anybody else around here?" he asks. "Ah, our little Paki friend."
In a separate incident, the 24-year-old is heard calling another officer cadet who is jokingly wearing a veil on his head a "f***ing raghead".
Referring to the use of the word "Paki", a statement from Clarence House 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.
"There is no question that Prince Harry was in any way seeking to insult his friend."
It added that he was using the term "raghead" to mean "Taliban" or "Iraqi insurgent".
Inayat Bungawala, of the Muslim Council of Great Britain, told Sky News that the remarks were "very, very disappointing".
"Many Muslims will be very disappointed that someone like that has used this kind of language and he really neeeds to come out with a clear statement distancing himself from this," he said.
