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Newspapers: Browse The Argus (Melbourne, Vic. : 1848 - 1957) Sat 18 Dec 1943 Page 3 WHY THE NAZIS LEFT THE STATE OF LIECHTENSTEIN ALONE
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WHY THE NAZIS LEFT THE STATE OF LIECHTENSTEIN ALONE
A Mid-European Pocket Handkerchief
Principality Provided a Business Refuge
By a Special Correspondent
HIDDEN in a fold of the
mountains on the border
of Switzerland and Nazi-occu-
pied Austria is one of Europe's
smallest States-the 65-square
mile principality of Liechten-
stein.
It is one of the paradoxes of war
that, while practically every other
neutral on the Continent is looking to
its defences for protection from ag-
gression, Liechtenstein's 11,000-odd
citizens have gone on in the old,
unflurried way and the country has
remained completely unarmed.
A recent London cable message
made clear one of the reasons why
this pocket-handkerchief State has
been able to retain its independence
and remain unmolested-the head-
quarters of many Berlin firms con-
trolled by Nazi party chiefs have
been transferred there.
Situated in the valley of the Rhine
some miles south of Lake Constance,
Liechtenstein dominates the pass
through which runs the main road
and railway between Austria and
Switzerland. But, despite the signifi-
cance of its strategic situation, the
principality's chief importance has
long been as a place of refuge both
in peace and war. In normal times
naturalisation in Liechtenstein could
be obtained for £500, and many
"financiers" who feared the extradi-
tion laws of other countries sought
citizenship. The principality also
became a sanctuary for tax-evading
European firms, which registered
their head offices in the picturesque
capital, Vaduz.
Liechtenstein, which is the oldest
German-speaking monarchy, takes
its name from the Liechtenstein
family, dating from the 12th cen-
tury. This family came into pos-
session of 2 former fiefs of the
' Special wedding stamp issued early this year in honour of the marrioge of Prince Franz Josef of Liechtenstein. Help
Special wedding stamp issued
early this year in honour of the
marrioge of Prince Franz Josef of
Liechtenstein.
Roman Empire, Schellenberg and
Vaduz, both within a few years of
the beginning of the 18th century.
In 1719 the 2 lordships were united
by a decree of the Emperpr Charles
VI, and constituted the Principality
of Liechtenstein.
The tiny country combines fruitful
and well-cultivated lowlands with
the wild mountain forests of the
highlands, which culminate in the
Naafkoff, highest peak of the Liech-
tenstein Alps, with an altitude of
over 8,400ft. Today, in a medieval
atmosphere, the people of Liechten-
stein graze their fine cattle on the
mountain slopes, and grow corn,
vines, and fruits in the sunny val-
leys. They spin and weave cotton,
and make their own leather goods
and pottery. Their homes are
charming old-world farmhouses and
village cottages, overlooked by the
centuries-old castles of Vaduz and
Gutenberg.
Vaduz, which has a population of
about 1,300, has one winding main
street, paved with cobblestones.
Vaduz Castle, the construction of
which was begun in 1342, is one of
the most beautiful of the romantic
old castles of Europe. Its stone
walls, with their forbidding battle-
ments and its drawbridge, moat, and
knights' courtyard, are perfect
examples of medieval construction.
With its strong air of feudalism,
peaceful little Liechtenstein seems
out of place,in the modern world
of mechanisation. It is a charming,
unspoilt remnant of other times,
and in its people tradition is so
deep rooted that time¡ seems to have
stood still in this isolated scrap of
Europe.
THE present ruler is 30-year-old
Prince Franz Josef II, who is related
to the Austrian Habsburgs. The
Huldigung of a new prince (which
takes the place of a coronation) is
held in Vaduz. Prince Franz Josef
became ruler in 1938, and at the
Huldigung which followed all the
citizens paid homage to their new
ruler, each stepping forward and
kneeling before him.
Taxes in Liechtenstein are negli-
gible, and there is no public debt.
For some years the principality's
finances flourished as a result of a
lottery conducted there by the pro-
moters of the well-known Irish
Sweepstakes. The drawings for the
lotteries were based on English horse
races and were held several times a
year.
They were occasions of importance
in Vaduz, and the Burgomaster and
other officials were in charge to
insure that the drawings were abso-
lutely fair. The lottery company
provided quantities of food and wine,
which were served free. Postal and
telegraphic revenue from the
sweepstakes, together with fiscal
taxes, provided a large surplus for
the Liechtenstein Government. Not
long before the war broke out the
lotteries were stopped at the in-
sistence of Switzerland, which had
The main street or Vaduz, capital ot Liechtenstein. Help
The main street or Vaduz, capital of Liechtenstein.
assumed a nominal protectorate over
the principality. The lotteries had
been in operation for a few years.
An earlier attempt to set up a
gambling scheme in Liechtenstein in
1914 failed. On that occasion a
Frenchman, a German, and an
American went near to establishing
a miniature Monte Carlo in
Liechtenstein's peaceful solitude.
The Frenchman, who was considered
the diplomat of the trio, opened ne-
gotiations with the Liechtenstein
authorities, and these proceeded so
well that the Liechtenstein Diet was
to ratify an agreement at a meet-
ing on August 7. But 5 days be-
fore the arranged meeting Austrian
soldiers invaded Liechtenstein and
demanded the arrest of the French-
man, who was lucky to escape by
dropping from his bedroom window
and racing his pursuers to the
bridge over the Rhine which led to
Switzerland.
Before the war Liechtenstein also
did a good export "trade" in post-
age stamps for the world's philatel-
ists. Each year countless thousands
of copies of Liechtensteih's issues
found their way to all parts of the
world, and the principality's postal
authorities saw to it that new stamps
were issued frequently. In recent
years, when the possibilities of the
stamp trade became fully appre-
ciated, the designs became suffi-
ciently picturesque and unusual to
whet the appetite of collectors who
had become a little cynical at the
multifarious issues. Rural scenes,
ruined castles, and fragments of the
principality's history, as well as a wide
variety of portraits, coats-of-arms,
bird-life studies, aviation scenes, and
modern road-building projects, were
among the subjects used on the
spectacular and colourful designs.
EARLIER this year Prince Franz
Josef was married to Countess Georg-
iana of Wilczek, an Austrian aristo-
crat. It was a gala occasion for the
people of Liechtenstein, and Vaduz
was transformed into a fairyland as
all pomp and ceremony of medieval
times was revived, and the Prince
and Princess rode in the royal car-
riage through lines of cheering citi-
zens. The former royal guard was,
however, absent, for the last sur-
vivor (aged 91) died in 1938. He
had fought against Bismarck's Prus-
sians in 1866. Special stamps cele-
brated the royal wedding.
Liechtenstein's constitution dates
from 1921. The Diet consists of 15
men, 12 elected and 3 nominated by
the ruling prince. Although an Aus-
trian principality, Liechtenstein is
included In the Swiss Customs
Union, which it joined In 1924. The
principality is also represented
diplomatically by Switzerland.
An interesting point is that, tech-
nically, Liechtenstein has been at
war with Prussia since 1866. It de-
clared war as Austria's ally, but in
the excitement which followed Aus-
tria's swift defeat its representatives
forgot to sign the peace treaty.
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