Status of The Title
The Princess of Wales is not a princess in her own right. While some past princesses, for example Catherine of Aragon, Alexandra of Denmark and Mary of Teck, were called "Princess Catherine", "Princess Alexandra" and "Princess Mary", that was because they were already princesses (of Spain, Denmark and Teck respectively) when they married. Though Diana, Princess of Wales was commonly called "Princess Diana" after her marriage to Charles, Prince of Wales, it was officially incorrect, as Diana herself pointed out, because she was not a princess in her own right. Similarly Camilla, Duchess of Cornwall, is neither "Princess Camilla" nor "Duchess Camilla".
There is, however, one notable exception to this rule. During her youth, Mary I was invested by her father, Henry VIII, with many of the rights and properties traditionally given to the Prince of Wales, including use of the official seal of Wales for correspondence. For most of her childhood, Mary was her father's only legitimate heir, and for this reason she was often referred to as "the Princess of Wales", although Henry never formally created her as such. For example, Spanish scholar Juan Luis Vives dedicated his Satellitium Animi to "Dominæ Mariæ Cambriæ Principi, Henrici Octavi Angliæ Regis Filiæ".
When a title was sought for the future Elizabeth II, the possibility of investing her as Princess of Wales in her own right was raised. This suggestion was rejected, because Princess of Wales is a courtesy title held by the wife of the Prince of Wales. If it were used by Princess Elizabeth, it would have degraded her right as a Princess of the United Kingdom unless Letters Patent or Legislation were introduced to the contrary. Furthermore, if the then Princess Elizabeth had been given the title of Princess of Wales, there would have been the problem of what to call her future husband. Therefore, King George VI decided not to give his elder daughter the title.
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