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ws ws eR pe ry ee reer ee ees - -* TheSalt Lake Tribune LIECHTENSTEIN Sunday, January 23, 2000 Liechtenstein Has Princely Political Dilemma Ruleroftiny country threatens to move away unless given new power BY CLARE NULLIS THE ASSOCIATED PRESS sanctions that threaten to strip wayward family members of their titles, the prince critics when they describe Hans-Adam's demands for new powers and his threatto leave the Alpine principality and his 32,000 subjects if he doesn’t get them. “He doesn't discuss. He just decides,” says Adolf Ritter, a teacher and member of the left-wing Free List party. “He c= listen to us, but expects to be — His Serene Highness Prince Hans-Adam II ofLiechtenstein cheerily ushers a visitor into his office in the family’s imposing 13th century castle perched high onthecliffs. “Would you like me to close the win- dow?” he offers, gesturing at the frostyair Seri in from the snow-covered Alps wwering over his tiny country. ‘% The 54-year-old prince then submits onsTnat doesn't belong to a democracy based on equality,” Ritter adds. Hans-Adam became the 13th Ruling Prince of Liechtenstein in November1989 upon the death ofhis father, Franz Josef I, who keptthe principality out of Adolf Hitler’s clutches and transformedthe im poverished farming nation into a wealthy industrialized one. Universally adored, Franz Josef used with patience, charm and humorto a 55minute interview abouthis views,his re- to say he ruled over a happy country. “Tt’s still a happy country,” lations with his people and his business6. His holdings, worth an estimated $3.8 adds with a laugh. billion to $4.4 billion, include an Amerian rice company, RiceTec, vast estates, an international bank and an art gollection. Patience? Charm? Humor? Hans-Adam.“Yes, I'm a happy man,” he His devout Roman Catholic family he has four children — has been spared the public scandals that have dogged other Europeanroyalty, partly due to a mixture of “tremendous luck” and says. has the final say on any law, and he can dissolve parliament and call early elections. At the same time,the Liechtenstein Hans-Adam has re can cl tained his father’s tradi. laws by gathering 1,500 signatures to tion of inviting the entire population to the castle force a referendum. for drinks and snacks on the Aug. 15 national day. He occasionally strolls Butthe prince says the constitution is ambiguous about when there are dis- through Vaduz without bodyguards, attends so- cial functions and agreements between him and parliament or the people. He has proposed amend- for relaxation — jogs barefoot in the woods. But while professing ments on issues such that “my heart is in Liechtenstein,” the as emergency rule prince is threatening to moveto neighboring Aus- judges, The prince's actions already have gotten him into trouble with the European and the nomination of tria, where his family lived until 1938 and where ‘TheSaltLake Tribune hestill owns large estates. The 1921 constitution says that Liechtenstein is amonarchy “on democratic and parliamentary foundations”and thatthe “authority ofthe state is anchored in the Ruling Prince and in the People.” Hans-Adam has sweeping powers: He Court of Human Rights. In October, the court in Stras- bourg, France, ruled Hans-Adam had violated the right to freedom of speech by refusing to accept the nomination of a judge, Herbet Wille, who disagreed with him in the constitutional dispute. Tiny Principality Under Attack Over Its Economic Boom’ THE ASSOCIATED PRESS VADUZ, Liechtenstein — Whining cranes and rapping ers are a constant backdrop as sleek office buildings, art galleries and opulent villas take shape on Liechtenstein’s once rentseer and rolling Alpine Effortsto solve the deadlock are due to resume this year. But nobody is optimistic. It is widely expected the prince will carry out his threat to gather the neces- sary signatures for areferendum to change theconstitution. Ifhe wins, in Liechtenstein. But if he loses, is family should be “free to do: ane 9a Seiiile have registered offices in the using the principality to wriggle out of heftytaxbills. Josef II, had to sel ll 5 Reason To Do Business With Us: government. handy mechanism to take advantage of Liechtenstein’s famously low taxes, which can beas little as 1 percent, and avoid detection at home. German authorities have long principality will resist pressure to raise taxes or changeits laws. Liechtenstein, closely allied with neighboring neutral Switzerland, managed to stay out of After the war the country grew from rags to riches thanks to innovative industries and its repu- + Quality Trained Techs 5. “Quality with you in mind” : Brushing all vents & cold air returns and cleaning main trunk lines. We can also Diinfect, clean furnaces & install permanent filters. Some restrictions nameofa Liechtenstein representative but operate abroad. It’s a fretted that wealthy Germans are some of the family jewels to bail out the But Hans-Adam insists his World WarIl. It was so poor that Hans-Adam’sfather, Prince Franz 4. Quality Equipment 2. Quality customer ceive 3. Quality Cleaning Quality Air Duct Specialists tation as a tax haven. Its 1995 membership in a European free trade pact caused the financial services sector to explode. * Owner Operated With Quality in Mind * Senior Citizen Discount! = * 100% Satisfaction Guaranteed sete BY CLARE NULLIS tee aeons Prince Hans-Adam II raises his glass during a National Day gathering. 1 LIECHTENSTEIN Those are three words that don't spring readily to the lips of the prince's “SP 561-0024 or tol free 1-877-561-9000 E21 ee and luxury stores xe forspace with banks,trust cor ‘@pnies and tax consultants. Ex. nsive cars jam roads that saw e arrival oftraffic lights only welatively recently. % Little eciaiin — the mini-country as it fondly dethes itself — has grown up. = The say principality of just 2,000 people is nowsorich that e ruling prince wants to abolish ie incometax. Butfrom where,or rather from whom, does the money ore South American drug bar: Russian underworld leaders ara Italian Mafiosi, accordingto allegations leaked from a report by Germany’s intelligence agency, which reportedly described Liechtenstein as a moneylaundering paradise. Amid general outrage, Liecht- enstein authorities have appointed a §] from nei into the investigator Austria to look tions that a net- work of top politicians, judges, police officials and financial advisers were involved in shadyfinancial dealings. > “It's not true. It's a lie,” explodes Prime Minister Mario Erick when asked about the legations. omen’s Coat| Clearance /2 OFF Misses ¢ Petites > Women’s World % “If you were to read that you BEewes @ere the prime minister of a corFupt, immoral, indecent country, how would youfeel?” he adds. Save on a variety of styles including: Extractsof the report shown on wiss television alleged that one the central figures is Hans runhart — Liechtenstein’s rime minister between 1978 and xa As a)\e7(ak 993 — and now board presidentof oneofthelittle country’s biggest banks, Verwaltungs und Privat- bank AG, * Both Brunhart and the bank have denounced the accusations andsaythey are considering legal action against the German intelli- abs Sees gence service. ACTIVE OUTERWEAR Liechtenstein officials particuarly are outraged that the Gerhan government has refused to jand over a copyof the report or tivulge anyof its sources. Frick concedes some money Aundering does take place here — hile stressing it goes on in many countries.— and says there is room to tighten existing laws, Ene Bacal ae possibly by forcing financial offi- cials to check the source of funds more closely and to report suspi- cious transactions. Officials have conducted 75 investigations into suspected money laundering, but have produced no convictions because of the prob- lem of coming up with concrete proof, especially given that Liechtenstein has no intelligence service, the prime ministersays. ButFrick saysthatat least the allegations have shaken Liechtenstein’s financial centeroutof its complacency — a view shared by governmentcritics. “Moneylaundering has been a taboo subject here,” says Paul Vogt, oneoftwo left-wingers in the 25-seat parliament. ple have nievertalked aboutit.” Prince Hans-Adam II, whose family owns the Liechtenstein gobel‘Trust, one of the poutine , also stresses the eed o keep the principality clean weButhe sees the German allegations as a possible tactic to pressure Liechtenstein into bringing its tax policy into line with neighboring countries, Liechtenstein is home to an estimated 70,000 “letter box” companies — more than twice the number of inhabitants — who SAVE 25% Ii Warm Wear rves, Hats, Gloves & Ruanas SAVE 25% All Fall Fashion & Novelty Slippers merchandise, ‘Selection varies by store. Limited to stock on hand, Basic, non-seasonal merchandise Is not included. 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