PRINCESS DIANA DEAD; PARIS CRASH KILLS FAYED, CHAUFFEUR.

Byline: Christopher Burns Associated Press 

Britain's Princess Diana, who had been struggling to build a new public and private life after her turbulent divorce, was fatally injured in a car crash today and her companion Dodi Fayed was killed as their Mercedes was being pursued by photographers on motorcycles.

The 36-year-old princess died at 4 a.m. (7 p.m. PDT Saturday) after going into cardiac arrest, doctors told a hospital news conference.

The crash happened shortly after midnight in a tunnel along the Seine River at the Pont de l'Alma bridge, less than a half mile north of the Eiffel Tower in central Paris. It came as paparazzi - the commercial photographers who constantly tailed Diana - followed her Mercedes on motorcycles, police said.

France's interior minister, Jean-Pierre Chevenement, said Diana's car was traveling at 60 mph through the narrow tunnel. French radio said that the driver lost control of the car, hitting the wall of the tunnel.

Five photographers were in custody, police said, and a criminal investigation was under way. France Info radio said at least some of the photographers took pictures before help arrived - and that one of the photographers was beaten at the scene by horrified witnesses.

Diana and Prince Charles, heir to the British throne, separated in 1992 after 11 years of marriage and divorced last year.

Their children, Princes William, 15, and Harry, 12, were informed of their mother's death by their father at Balmoral Castle, Scotland, where the royal family traditionally spend their summer holidays.

Queen Elizabeth II and Prince Charles said they were ``deeply shocked and distressed by this terrible news'' of the death of Diana, a Buckingham Palace spokesman said.

President Clinton said he was ``profoundly saddened'' by the death of Princess Diana.

``Hillary and I knew Princess Diana and we were very fond of her. We are profoundly saddened by this tragic event,'' Clinton said in a statement from Martha's Vineyard, Mass., where he's vacationing.

Clinton said his thoughts and those of his wife were with Diana's family, friends ``and especially her children.''

Diana's death from cardiac arrest came after she suffered heavy internal bleeding in the early morning crash.

Her death was announced at a 6 a.m. hospital news conference by Dr. Bruno Riou, an anesthesiologist.

The high-speed pursuit ended in a crash in the tunnel that trapped several people in a pileup. The force of the crash crumpled the roof of the Mercedes to door-high level.

British Prime Minister Tony Blair, who was awakened with news of the crash, said he was ``shocked and saddened'' by the ``devastating, appalling tragedy,'' a spokesman said.

``The death of the Princess of Wales fills us all with shock and deep grief,'' said British ambassador Michael Jay, who was at the hospital.

Fayed, the 42-year-old son of the billionaire Egyptian owner of London's prestigious Harrod's department store, was also killed in the crash, along with the chauffeur.

His father, Mohamed Al Fayed, was on his way to Paris, said his spokesman Michael Cole.

France Info reported the chauffeur was a security agent at the Hotel Ritz, owned by Mohamed Al Fayed.

The fourth person in the car, a bodyguard, was also seriously injured in the crash.

Diana died at the Hospital de la Pitie Salpetriere in south-central Paris.

Before news of the death, a Buckingham Palace spokeswoman in London said Prince Charles, now in Balmoral, Scotland, had been informed of the crash.

``We are aware of this awful accident, but we are awaiting further details about what has happened,'' the spokeswoman said on condition of anonymity.

American tourists Tom Richardson and Joanna Luz were among the first on the scene.

They told CNN they were walking nearby when they heard the crash and ran into the tunnel.

The car Diana was in ``looked like it hit a wall,'' said Richardson, of San Diego.

``There was smoke. I think the car hit a wall. A man started running towards us telling us to go.''

Luz said: ``The horn was sounding for about two minutes. I think it was the driver against the steering wheel.''

Fayed's and Princess Diana's close friendship became clear to the outside world over the past five weeks, as the couple took a series of holidays together in the Mediterranean.

Newspapers reported Diana first met Fayed almost 10 years ago when he and Prince Charles played polo on opposing teams. Films he has produced or co-produced include the 1981 Oscar-winning ``Chariots of Fire,'' ``The World According to Garp,'' ``F/X'' and ``Hook.''

CAPTION(S):

2 Photos, Map

Photo: (1--color) Princess Diana

Dies in hospital

(2) Police inspect the wreckage of the Mercedes in which Princess Diana was riding when it crashed in Paris.

Associated Press

Map: Pont de l'Alma bridge: Site of car crash killing Princess Diana