Continuity mistake: Just after Princess Dala says "want to be friends Charlie", her cigarette jumps from her left hand to her right. Not only does her cigarette jump around, as the scene goes on, it disappears.
Charles and George Litton both try to steal the diamond, but it isn't there. They try to escape in cars, but end up getting lost, crashing and being caught by Clouseau. The Princess hid the diamond out of fear, but didn't intend for the Littons to be arrested. Clouseau's wife (also in cahoots with the Littons) hides the diamond on Clouseau's person, so he accidently gets it out at the trial and is convicted himself. As the Police drive Clouseau to prison, Charles notes that Clouseau will be freed the next time the Phantom strikes. The movie ends with the Police car running down the animated Pink Panther.
[Sir Charles Lytton kisses Princess Dala.]
Princess Dala: If I were my father, I'd have you tortured.
Sir Charles Lytton: No. If you were your father, I doubt very much if I would have kissed you.
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