Prince Harry's racist remark about a Pakistani member of his army platoon has prompted widespread criticism.
The prince issued an apology after the News of the World published a video diary in which he calls one of his then Sandhurst colleagues a "Paki".
Cabinet minister John Denham said it was "offensive", while the Ramadhan Foundation called the prince a "thug".
St James's Palace said he had used the term "Paki" as a nickname about a friend and without any malice.
The prince filmed parts of the video and in another clip, he is heard calling another cadet a "raghead".
The newspaper said in a statement that in the video, Harry referred to one colleague as "our little paki friend" — using a derogatory term for people of Pakistani origin.
It reported that he called another cadet — who was wearing a headscarf — a "raghead." The newspaper said that the video was filmed by other cadets and supplied to the newspaper.
St. James's Palace — the office of Harry and his elder brother Prince William — said on Saturday that Harry was sorry for any offense caused by his use of the word "paki."