Lord Nelson never got to see the china set

Nelson ordered the breakfast, dinner and tea set in 1802, but only part of it arrived three months after his death. The bill was never paid.

A Nelson memorabilia company handed over a cheque for �3,750 - the equivalent of the original sum plus interest - at St Paul's Cathedral.

Royal Worcester said new customers would not be given such generous terms.

'Honour preserved'

James Boddy, the owner of the company producing Nelson memorabilia, paid back the debt in front of more than 25 descendants of Nelson.

"By clearing a long outstanding debt Nelson's honour is preserved," said Mr Boddy, from Norwich.

The breakfast service - which was the only part of the order to arrive - is now spread all over the world.

Anna Tribe, the great-great-great granddaughter of Nelson and his mistress Emma, Lady Hamilton, said she was pleased the debt had been settled.

"I only wish that if the debt has been settled I had some of the china it has been settled for," said the 75-year-old.

The money will be donated to the Royal Naval Association.