The prince taped the video
himself as part of a video diary of his time in service. Casual remarks that he made with fellow soldiers are being condemned by politicians and British Muslim spokesmen.
Because of the prince's remarks in his private video the Equality and Human Rights Commission have demanded an inquiry.
Prince Harry was 21 at the time of the taping. One of the remarks was calling Ahmed Raza Khan a "Paki." The popular comrade of the prince did not react to the comment at that time. Khan has gone on to be awarded the best overseas cadet prize at Sandhurst.
Clarence House offered a formal apology on Sunday. The Ministry of Defense has stated that they have a zero tolerance of racism, sexism and homophobia in the ranks. Although they are not aware of any complaints that had been previously made they are taking the matter seriously and investigating it thoroughly.
An army spokesman said: "The army does not tolerate inappropriate behaviour in any shape or form. The army takes all allegations of inappropriate behaviour very seriously and all substantive allegations are investigated. This specific case will be dealt with in line with normal army procedures."
Cabinet minister John Denham stated that this type of language is seen as offensive and that the prince has apologized for it. He also added that the royal family can do almost nothing without having it splashed across the front page of the newspapers.