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This unusual and stylish dress is likely by Catherine Walker. It features her typical body-skimming cut in a pale lime and lemon suiting fabric (possibly a jersey, judging by the drape,) and includes Diana’s nice touch of having matching earrings made from the buttons. The diagonal single breasted placquet draws the eyes down to the left hip, then back to the hem, which minimizes the width at the waist. The hat is the same style as two or three others Diana wore, notably the black hat worn to her father’s funeral and a hot pink version worn to the races.
The only photos I’ve been able to find are a handful from balcony appearance for Trooping the Colour in 1990, so the skirt isn’t visible due to the balcony cutting off below the hips, so I’m guessing at it being a coatdress as opposed to a suit. The lines scream dress as opposed to jacket over skirt. The hat is likely a Philip Somerville. My guess is that it was an outfit intended for a Gulf State Tour, based on the colour combination, the lightweight fabric and the very modest neckline and sleeve length. Diana had a type of uniform for those trips, and this one ticks a lot of the boxes.
If photos of Diana in the outfit have been difficult to find, FM sized replicas have been impossible. This is one that only a small number of Diana designers could tackle. It has many little tricky tailoring challenges...then there's that hat. C'mon. Someone prove me wrong.
As an outfit for the FM vinyl doll, I'd like to see it include:
1. Coatdress
2. Hat
3. Navy spectator shoes
4. Pale lemon or cream handbag
5. Gold button earrings