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The first transsexual officer in the Armed Forces is set to sue the Ministry of Defence for unfair dismissal and sexual discrimination.

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But after she refused to turn up at a medical examination dressed in a male uniform – which her lawyers argue would have been 'humiliating and demeaning' – the job offer was withdrawn.

Her lawyers have, to no avail, repeatedly sought an informal meeting with her Army bosses to settle the issue out of court.