Tomorrow, on Thursday, Liechtenstein submits the grounds for its application against the Federal Republic of Germany based on continued infringement of international law, to the International Court of Justice in The Hague. In the Memorial comprising more than 200 pages, Dr. Alexander Goepfert, Liechtenstein's Special Commissioner and Agent in the proceedings, explains the attitude of Liechtenstein: "The Court shall determine that Germany failed to respect the sovereignty and neutrality of Liechtenstein as well as the rights of its nationals with respect to their property. Moreover, protection is requested against possible future violations of the property rights of Liechtenstein nationals and enterprises. In addition, Liechtenstein is applying for determination of a compensation for the fact that Germany treats Liechtenstein property confiscated in the territory of former Czechoslovakia as German external assets that can be used by Germany in order to settle its war debts."

In June 2001, Liechtenstein had filed the application; now, with presentation of the grounds, proceedings enter into a new stage. In the next three months, Germany can comment on the admissibility of the application.

The background to the proceedings is the fact that Germany treats Liechtenstein's property in the territory of former Czechoslovakia as German external assets. In Germany's opinion, these assets may be used for settling German reparation debts payable to the former Allies.

Former German Position

Until the early 90s, Germany had not recognised as legally binding any reparation measure whatsoever taken by the Allies in countries outside Germany. In Germany's opinion, these measures violated international law. Up to then, Germany had merely accepted as a given fact all confiscations effected for the purpose of reparation by the Allies and their Associated Powers, also including confiscations under the Benes Decrees. Compensation was to be made for the property affected by the reparation measures. Liechtenstein and Germany were of the common position that Liechtenstein assets could in no way be regarded as German external assets - consequently German war debts were not to be paid by them.

Change of Germany's Position

In the mid 90s the German position changed fundamentally: both German courts and the Federal German Government now defined Liechtenstein assets as being German external assets that, as a corollary, could be used to settle German reparation debts. This means as a consequence, that Germany also recognizes the reparation measures of former Czechoslovakia (Benes Decrees) against Liechtenstein assets as being final, while refusing to pay compensation for them.

"Against this backdrop", Goepfert emphasizes, "the Principality of Liechtenstein must protect its interests against the violation of its rights by the Federal Republic of Germany and prevent future violations of property rights of its nationals and enterprises."

Vaduz/The Hague, 27 March 2002

For further information see under /www.liechtenstein-icj-case.li

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