Evening star., 1939-03-19
Tiny Liechtenstein Faced With
Grim Domination by Germany
Threats of Seizure of ROYAL Familv's Laree Land
Holdings May Prompt Ruler to
Yield to Hitler Rule
By John d. Leonard.

For centuries Liechtenstein, Europe's
fairyland principality whose area is
about that OF Washington and whose
attractive multi-colored stamps are
found in the albums of most philatelists,
has remained aloof from world troubles.
However, only short time before last
weeks demise of the 20-year old Czecho-
Slovakian Republic, reports emanating
from Zurich warned that tiny Liechten-
stein, sandwiched in the Alps between
Switzerland and former Austria, the lat
ter now a part of greater Germany, may
seen be eclipsed within the orbit of
German domination.
And, as Adolf Hitler's gray leeions
marched eastward over the Czecho-
Slovakian borders and into Bohemia,
Prince Franz Joseph, 3l-year- ruler
OF Liechtenstein may we'll have pondered
over the destiny of his tiny state. Liech-
tenstein's wealthy royal family possesses
large estates in former Austria and
Bohemia, both of which are now a part
OF Greater Germany. Should Germany
desire to annex the little principality,
threats Of conlscation of these large land
holdings might we'll be used to persuade
Prince Franz Joseph to fall in line with
the changes of Mittel Europa politics.
A year ago, when the Ides of March
brought German annexation of Austria,
Liechtenstein's 85-year- -old Prince Franz
I suddenly ended his 10-year reign over
the peaceful little country and its 10000
inhabitants, and abdicated in favor of
his nephew, Prince Franz Joseph, the
present ruler. 1t was said at the time
that Prince Franz I, fearing possible
Hitler coup, did not relish the idea of
being on the throne when it happened.
Annexation of Liechtenstein almost
certainly would presage the end of one
OF the worlds great safety deposit
boxes No longer would Liechtenstein
provide safe home for foreign capital.
At present its people are tax free. The
royal family foots approximately half of
the little countrys annual bill, the re-
mainder being paid with revenue derived
from taxes which some of the worlds
largest corporations pay for retaining
their seats in Vaduz, the picturesque
capital of Liechtenstein.
Country Has No National Debt.
Since the taxes are only nominal. these
large foreign companies have established
headquarters in Liechtenstein to avoid
paying the higher penalties in their own
countries. The taxes may be paid for as
long as 80 years in advance, thus saving
the Liechtenstein government the cost
OF annual calculation, as we'll as provid-
ing a substantial source of revenue. So
favored has the tiny state become as a
seat for large corporations that its popu-
larity rivals that of our own State of
Delaware. Hence, between the funds
which Liechtenstein royalty obtains from
its own large holdings in former Austria,
Bohemia and Saxony and those which
the principality derives through taxing
foreign corporations, Liechtenstein can
boast that it has no national debt
Adolf Hitler would find little military
resistance were he to attempt military
occupation of Liechtenstein The high
mountain peaks surrounding the country
might prove temporary but not insur-
mountable barrier. But since Liechten-
stein has seldom been troubled with Eu-
ropes wars it has no standing army.
Once, back in 1866, Liechtenstein mus
tered some 80-odd stalwarts who Joined