LUXEMBURG

Evening Star, Issue 22441, 11 September 1936, Page 12

LUXEMBURG

EUROPE'S LAST GRAND DUCHY

Luxemburg, only remaining European Grand Duchy, lies peacefully tucked away in a corner between Germany, France, and Belgium (writes Marc T. Greene, in the ‘ Christian Science • Monitor ’). Prosperous and without problems of unemployment, illiteracy,--.or- unsettled finance, it is like a solid rock amid the shifting sands of Continental uolitical- and economic uncertainty. It contains scarcely!,OUU square miles and has only 300,U0U inhabitants. It is little known, to travellers, though it is a kind of epitome to the scenic .beauty of all Europe. But its . outstanding interest; centres about the. significant fact' of its tranquillity and contentment in the midst of the unsettled; conditions all it. | As you approach the city of Luxemburg your way leads through a country whose charm suggests parts of Switzerland, Germany, and England. - There is the variety of them all, particularly in the northern part, ..which is a. continuation of the,famous Ardennes, district of Belgium. The capital itself, originally built .to be almost impregnable to assault, is situated on a sort of rocky mount on. three sides of which steep cliffs fall away to surrounding rivers, the 'Moselle and tributaries. Massive fortifications are everywhere. They rise in tiers strengthened and surmounted by towers and bastions, full l of chamber? and subterranean passages and bid dungeons.

VINES AND FOLIAGE, Time has softened their grimness by draping, them with vines and foliage and implanting trees and shrubs in interstices' and cracks in the gray old walls‘and along the parapets. _ Luxemburg- is as rich in Old World towns - and as any Continental country. In a short time by road through the park-like forests and along the banks of the Moselle and its branches you come to Echternach, most ancient of all, where there is a Benedictine abbey dating from the seventh century and. founded by ; an AngloSaxon missionary. In another direction is Ettelbruck, a name which derives from u Atilla’s Bridge,” because the‘Hunnish chief established a shortlived settlement here some 16 centuries ago. The little town of Esch on the Hirer Sauer is ■ a place of , romantic charm rarely equalled in Europe. It stands upon a hill almost surrounded by the river, the picturesque old; house's rising from the water’s edge to cluster in the shelter of the; fortress that used to defend them in times of feudal conflict.

The present 'sovereign of Luxemburg is the Grand Duchess Charlotte, who succeeded the Grand Duchess Mane Adelaide in 1919. The prince consort is Felix of Bourbon Parma. Both are regarded with great affection by the people of Luxemburg. They and their Ministers and heads of various Governmental- departments have earned this regard in their management of the affairs of the Duchy in such a fashion as to promote the welfare of the whole people and to establish a sound and well-poised social structure. Financial affairs, especially, appeal to the visitor as conducted in a manner that is a model to the whole of Europe. In any case, notwithstanding the fact that the Grand Duchy has during the past few years carried out many and extensive schemes of construction and improvement through the country,. there has not been a year since the close of the war when Luxemburg’s fiscal record ms not shown an excess of receipts Aer expenditures. . UNIQUE FACTOR. The Grand Duchy, however, is indebted to one unique factor for at least a part of its healthy financial condition, the numerous foreign holding companies.- The fiscal statute relating, to these is considered the most liberal in the world, even more so than those of the Canton of Glares in Switzerland, or of the principality of Lichtenstein. And since the advantages of this fiscal law are reserved chiefly for foreigners, the capitalists and financial groups of all the countries of Europe, and'also from the United States, have placed Born'e' of ' their interests in the Grand The incorporation charges'for holding companies, which may take one of several, different forms, corporation, joint stock companies, and so forth, are 84,000 francs in the case of a company with a paid-up capital, of 20,000,000 francs and annual earnings of approximately 2,000,000. Capital, may be subscribed in any currency, the portfolios’of the company may include both Luxemburg and foreign securities, and officers, directors, and shareholders mi ay all Ibe .foreign. As a result, there are now incorporated in the Grand Duchy more than 400 holding companies. FINANCIAL CENTRE. Many other companies represent interests throughout the entire world and make Luxemburg one of the most important of all centres for international financial concentration. _ The. revenue to the Grand Duchy from all this is considerable, and, together with the thriving metal industries. maintains the economic state of the little country on a level probably higher at the moment than any other in Europe, not excluding even the Scandinavian group. Naturally, this is reflected in the manners and character of the people of the Duchy. They are of a generally high -degree of intelligence, absolutely free from the smallest percentage-, of illiteracy, possssed of a high standard of culture and'nn equally high standard of manners. You note the prosperous looking shops and the high quality of their goods, the many excellent' hotels and restaurants, and the amiable aspect of the people.