The Queen tonight told of her sadness over claims of royal racism made by Harry and Meghan in their Oprah chat.
She vowed to investigate but challenged their version of events.
Despite the shock allegations, she said: “Harry, Meghan and Archie will always be much-loved family members.”
As the fallout from Harry and Meghan’s interview continued, the Queen appeared to strike a conciliatory tone with her belated response.
The monarch spoke of her sadness at the couple’s allegations of racism, lies and snubbing the pregnant Duchess’s pleas on her mental health while feeling suicidal.
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She promised to probe the accusations, but also challenged their version of the events that stunned the world, claiming the pair may have remembered some aspects differently.
In a heartfelt statement issued at 5.26pm, the Queen told how she would always love her grandson and his family, despite the accusations they poured out during their bombshell interview with Oprah Winfrey.
And she insisted the Palace would investigate claims that a senior royal made comments about how “dark” their unborn son Archie would be.
The statement said: “The whole family is saddened to learn the full extent of how challenging the last few years have been for Harry and Meghan.
“The issues raised, particularly that of race, are concerning.
"Whilst some recollections may vary, they are taken very seriously and will be addressed by the family privately.
"Harry, Meghan and Archie will always be much loved family members.”
There was widespread outrage after Meghan claimed to US chat show queen Oprah the Royal Family ignored her desperate cries for medical help, as she contemplated suicide when five months pregnant.
Millions of TV viewers and many more who read about the interview waited for a response from the Palace over that threatened to engulf the monarchy in its worst crisis since Edward VIII abdicated in 1936.
Royal sources insisted the family wanted to take its time to respond in light of the seriousness of the couple’s claims during the chat, which was aired in the US on Sunday and the following night on ITV in Britain.
One said tonight: “At the heart of all of this there is a family.
"They should be given the opportunity to discuss the issues raised privately, as a family.
"It has been important for us to carefully consider any response before issuing; and of course releasing something today meant viewers in the UK had the opportunity to watch the interview, if they wished to, first.
“Diversity, equality, inclusion and mental health are important issues and highlighting that has formed part of the work of members of the Royal Family for many years.”
Insiders told how there was “shock and disbelief” over the claims of racism at the heart of the Palace.
And royal biographer Andrew Morton told how the fallout from the interview will “shudder down through the generations in the same way that Diana’s did”.
During her Panorama interview in 1995, Harry’s mother called royal officials “the enemy” and questioned Charles’s suitability to be king.
Royal author Penny Junor called the Queen’s response to the allegations “dignified”.
She said: “It is leaving Harry and Meghan some dignity and it’s expressing that they will always be much-loved members of the family.
“It says that they are saddened to learn how challenging those years were for Meghan and Harry.
They are saying ‘we didn’t appreciate quite how tough it was for you.
"You’ve raised an issue of race, which is worrying to us, and while some recollections may vary, we hear what you’re saying and will look closely and address any failings we find’.
“So they are saying we don’t buy everything you’ve accused us of.
"I think the route, as far as I was concerned, was to reply in sorrow rather than anger, which is what they’ve done.”
Ms Junor claimed it was unlikely the Palace would comment further in the immediate future on the matter.
She said: “It’s a very skilful statement.
“There’s no way that they could have countered any of the accusations they felt were unjust because to counter one would have meant they would have had to counter all of them, and that would have become undoable.
“I think they’ve expressed this absolutely to perfection.
"I think less is more in this situation.”
Meghan’s estranged father, Thomas Markle, today waded into the race row, backing the Queen.
He said: “I don’t think the British royal family are racist at all.”
While he insisted claims of racist comments should be investigated, he added: “It could be somebody asked a stupid question, rather than being a racist.”
There has been a guessing game across the globe over who the “royal racist” could be after Oprah revealed on US breakfast TV Harry later told her it was “not his grandmother or his grandfather”.
In further unseen footage of the interview, Meghan today insisted that despite signing up to the chat she wanted a “basic right to privacy”.
It had been watched by more than 17 million people in America and 12 million here.
The Duchess said: “If you’re at work and you have a photo of your child on your desk, and your co-worker says, ‘Oh, my gosh, your kid’s so cute.
“Can I see your phone so I can see all the pictures of your child?’ You go, ‘No, this is the picture I’m comfortable sharing with you.’
"And then if they double down and say, ‘No, but you already showed me that one. So you have to show me everything.'
"That’s sort of the flawed argument and operating mechanism they’re confusing people to think.
“I think life is about being able to share our stories, share parts of our lives that you’re comfortable with.”
Royal insiders rejected Harry’s claim that he had been “cut off” by his father, insisting Charles feels “let down” by his son’s comments.
A source said: “The Prince of Wales went out of his way to make sure his son and daughter-in-law were financially supported.”
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