 Hathaway's tenure as dame saw the German occupation of the Channel Islands in the Second World War, during which she refused to evacuate and convinced the islanders to stay as well. Her eldest son and heir apparent, Francis William Beaumont, was killed in 1941, while her husband was deported to a Nazi concentration camp in 1943. Hathaway remains best known for her indomitable conduct during the occupation. After the war, she continued her publicity campaign, strengthening the island's tourism industry.
