EUROPE’S LATEST DANGER ZONE

Dominion, Volume 31, Issue 241, 8 July 1938, Page 11

EUROPE’S LATEST DANGER ZONE

Liechtenstein Past And Present

Extending for 15 miles along the right bank of the Upper Rhine, between Austria and Switzerland. 65 square miles in area, the mountainous principality of Liechtenstein, with its 11,000 population, is the third smallest independent State in Europe. Only San Marino and Monaco are smaller. Liechtenstein has had a centuriesold association with Austria, and it was due to the action of an Austrian Emperor in 1719 that it was given the status of a principality, together with its present name, which Is derived from the family of Liechtenstein, one of the oldest in Austria.

The little State enjoyed its first essay in independence for a brief nine years (between 1806 and 1815). and then joined the German Confederation, a loose combination of German States out of which was formed the German Empire. In 1866 Liechtenstein again became independent, although joining th) Austrian Customs Union and maintaining relations of other kinds with that country.

Its Diet.'a Parliament of 15 members (three nominated by the prince and 12 others elected for a term of four years on a system of proportional representation by all men over 24 years of age), on November 7. 1918. declared Liechtenstein completely independent of Austria.

But this independence does not altogether extend as far as function, lor. under a treaty with .Switzerland of 1920. Liechtenstein’s posts and telegraphs are administered by the Swiss Government : Swiss currency is used; and. since March 29. 1923, it lias been incorporated in the Swiss Customs territory. Abroad, its foreign interests are attended to by Switzerland. German-Speaking. The people of Liechtenstein are mainly German-speaking and Roman Catholic in religion. They are mainly engaged in agriculture (their stock-rais-ing being highly developed), weaving, and embroidery. One of Liechtenstein's principal exports is its own postage s'nmps and a company was formed in 1919 to organise this branch of the national commerce on a sound financial basis. The fact that Liechtenstein is more

or less tex-free is also, paradoxically enough, a source of revenue to the principality. which has for many years been a popular place in which to register new companies without paying the dues which are demanded elsewhere. Similarly, many rich men—particularly Americans —have bought estates* in Liechtenstein, where they can live for a number of months each year in order to escape paying income tax. The principality has also for many years been a centre of the European lotteries business.

Until the end of last February the ruler of Liechtenstein was Prince Franz I. Eighty-four years old, he succeeded to the principality in 1929 on the death of his 89-years-old brother, Prince John, who had ruled for 71 years. Prince Franz, who on July 22, 1929, married a commoner (the daughter of a Jewish banker of Austria), is one of the richest men in Europe. Strain Too Great. He owns estates outside Liechtenstein that are larger than the little country from which he so recently abdicated in favour of his 32-years-old bachelor grand-nephew, Prince Franz Joseph. He has regularly paid into the Liechtenstein treasury enough to make the 11,000 Liechtensteiners tax free —or nearly so. The aged Priuce gave as his reason for abdication that he was tired and that the strain was too great. It is thought, however, that fear of the rising tide of Nazism so close was the real reason.

There need be no surprise that Herr Hitler has designs on annexing this little principality, for it is the only purely German State now remaining outside Germany, and the last of all the once-numerous German monarchies. Fear of Germany made Liechtenstein within recent months approach the Great Powers, and above all Germany, to get them to extend to it the pledge given to Switzerland; to respect its territorial integrity, independence and neutrality. With the knowledge that Germany would never consent to this, Liechtenstein and the Swiss Government have been considering also the question of attaining this object by admitting the principality into the Swiss Confederation as a canton. The major reason for this on the Swiss side is the strategic importance this dot on the map has for Switzerland since Austria went German. But, while remaining close to Switzerland, the people of Liechtenjstein are keen to maintain their inde- ’ pendence.

If Germany takes Liechtenstein, she needs only to cross the Rhine —too small at this point to be much of an obstacle —to seize Sargans and thus cut the only railway and highway connecting all Eastern Switzerland—St. Moritz and all the Engadine—with the rest of Switzerland during the winter. That means for three-fourths of the year. Always on Guard. The possession of the Engadine would help the Rome-Berlin axis by providing a shorter line of communication over the Landeck-St. Moritz-Como-Milan road. German imssession of Liechtenstein would put the Swiss Sargans lifeline always under German guns, even if Germany did not cross the Rhine. It is not two miles from the frontier. Swiss possession of Liechtenstein would protect Sargans with a range of mountains about 7000 ft. high.

The concern which the Liechtenstein situation is causing tlie Swiss Government may be seen from the fact that even six months before Germany seized Austria. Switzerland quietly reoccupied (with a permanent garrison I Fort Luziensteig, near Maienfeld. on Liechtenstein’s southern frontier. Here Swiss sentinels are now always on guard against a German surprise.

Liechtenstein lias no army. The only citizen who lias been a soldier is now 97. He is Andreas Kleber, a veteran of the army which the principality disbanded when it disarmed in 1868.

When asked recently if Liechtenstein was now going to arm, Dr. Hoop, the administrator appointed by tlie Prince, gave tlie world's only "no” to that question.