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NSA Denies Monitoring Calls of Princess Diana

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Wall Street financier Forstmann, 66, met Diana at an October 1994 dinner at the Georgetown home of the late Washington Post Co. chairman, Katharine Graham, according to a person familiar with the situation who asked not to be identified because of the sensitive nature of the matter.

The two "really hit it off" that night and became close friends, but there was never a romantic relationship between them, the source said. They talked regularly by phone and Diana called Forstmann during her separation and divorce from Prince Charles, the source said.

In the spring of 1997, Diana called Forstmann to ask about renting a house in the Hamptons, the Long Island resort community, during the summer, and Forstmann put her in touch with a local broker, the source said.

Sometime later, Diana called back to say that British security officials would not let her bring her sons, Prince William and Prince Harry, because of a "security problem." The source said Diana did not specify the nature of the problem.

Lacey said Diana was required to bring royal family security agents with her whenever she traveled with her sons, although she often traveled without security when she was alone.

Forstmann, an investment banker who formerly owned Gulfstream Aerospace Corp., occasionally let Diana use his private plane, the source said. Although Forstmann had no idea whether officials were monitoring his phone calls with Diana, the source said, he had heard rumors that someone had planted listening devices in his plane to listen to the princess.

The source added, "If they were listening to her calls, it was because of her, not him."

Pincus reported from Washington.


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