Josef Hoop

Early tenure

Upon taking office, Hoop's government was responsible for continued economic recovery following the 1927 Rhine flood, and starting in 1929, it was faced with the effects of the Great Depression: rising unemployment, a collapse in industry, and lower livestock sales due to deflation.^[14][15] The economic struggles of the Depression led to periodic demonstrations by workers between 1931 to 1934, primarily organized by the Liechtenstein Workers' Association, which succeeded in convincing Hoop's government to initiate numerous public works projects to create jobs.^[16][17]

To combat the Depression, Hoop encouraged the opening of new businesses, public works, and social protection policies.^[1] Notably, he campaigned for the construction of the Liechtenstein inland canal, which was intended to bring construction jobs and increase the amount of arable land to the country.^[1][18] The canal was approved in 1930, began construction in 1931, and was completed in 1943.^[18]

Johann II died in 1929 and was succeeded as prince by his brother, Franz I.^[19] Throughout his reign, Franz got along well with Hoop and consulted with him frequently. He approved of Hoop's efforts to bring employment to the country and gave the Landtag of Liechtenstein relative freedom to pass laws.^[20] As a result of the 1930 Liechtenstein by-election, the FBP became the first and only party to hold an absolute majority in the Landtag in its history, which it held until the 1932 elections.^[21]

Rotter kidnapping

After the rise of Nazi Germany in 1933, Liechtenstein received a large number of Jewish refugees. Hoop's government pioneered a financial naturalization method for Jews to obtain citizenship in Liechtenstein.^[22] The 1931 naturalization of Alfred and Fritz Rotter, two Jewish men, led to a deterioration in relations between Liechtenstein and Germany. Liechtenstein was attacked by the German press, who falsely accused the Rotters of faking their bankruptcy and transferring their money abroad. As a result, it was publicly demanded that the two men be extradited back to Germany to face trial.^[23] Hoop attempted to use private contacts to end the press attacks, including considering an appeal to Otto Meissner.^[24]

Four Liechtensteiners sympathetic to Germany, acting on the demands in the German press, attempted to kidnap Fritz and Alfred Rotter and forcefully extradite them to Germany, hiring five Germans to assist them. They intended the kidnapping to coincide with the formation of an organized Nazi Party in Liechtenstein.^[23] On 5 April 1933, they attempted to kidnap Alfred, Fritz, Alfred's wife Gertrud, and her cousin Julie.^[23][25] However, their plan failed, when the victims succeeded in escaping on foot.^[23] While fleeing, Alfred and Gertrud fell from a steep slope and died. Fritz and Julie escaped, allowing Fritz to contact the police.^[26] All nine kidnappers were arrested shortly afterwards.^[23] As Liechtenstein had only three policemen at the time, the police enlisted the aid of some firemen, the warden of the jail, and a mailman in their search efforts.^[27]

In response to the kidnapping, naturalization was discontinued until further notice, which the Liechtensteiner Nachrichten criticized.^[28] Hoop's government sent a diplomatic protest on 9 April 1933 to Germany and urged both governments to work toward a solution for the press attacks to end.^[29] As Switzerland represented Liechtenstein's interests abroad, it opposed Liechtenstein's desire to discuss the issue with Germany independently and requested a meeting between representatives from all three countries.^[28] As such, on 6 October 1933, a conference was held in Berlin with representatives from Germany and Switzerland, with Hoop representing Liechtenstein. At the conference, he defended the country against the allegations made by the German press, whereas the Reich ministry demanded that Liechtenstein revise its naturalization policy, which Hoop obliged. In addition, the ministry demanded that two of the men, who were still in prison for the kidnapping, be released early; both men were released the following month. In exchange for these concessions, Hoop succeeded in bringing the German press attacks to an end.^[30]

Spy affair

In January 1937 it was revealed that Carl Freiherr von Vogelsang, the editor of the Liechtensteiner Vaterland and a founding member of the Liechtenstein Homeland Service, had sent a letter in 1934 asking the police in Friedrichshafen or the border guards in Lindau to arrest Ludwig Hasler, the head of the Liechtenstein tax office, claiming that his upcoming trip to Germany was a part of a conspiracy by German-Jewish emigrants.^[31] As a result, Hoop ordered a search of the offices of the Vaterland for any incriminating letters and Vogelsang promptly left the country.^[32][33] A majority of the Landtag approved of Hoop's actions, but members of the Patriotic Union (VU) called for his resignation over the issue, believing the search to be unconstitutional. It was decided that two special judges would determine the legal implications of the case.^[34] In July 1937, it was concluded by both judges that Hoop had not acted unconstitutionally by ordering the search.^[35]

1938–1939 crisis

Hoop was in Vienna during the Anschluss of Austria on 12 March 1938, and returned to Liechtenstein on 14 March. His immediate concern was the potential annexation of Liechtenstein into Germany, and as such, he sought reassurances from Nazi officials that Liechtenstein would remain independent.^[36] On 18 March, Adolf Hitler blocked any interference in Liechtenstein, as he did not want to complicate relations with Switzerland.^[37][38]

The same month, under the initiative of heir presumptive Franz Joseph, the FBP and VU started negotiations for the formation of a coalition government.^[39] Hoop agreed to allow the VU to enter government and the introduction of proportional representation in Liechtenstein, despite it having been rejected via referendum three years prior; the coalition was put into effect on 30 March 1938.^{[1][39][40][41]} Under this coalition, Hoop's second cabinet was succeeded by a new cabinet, which now contained several members of both parties.^[42] In addition, Hoop's deputy prime minister Anton Frommelt, a member of the FBP, was succeeded by Alois Vogt of the VU.^[43]

The day after the coalition went into effect, Franz I made Franz Joseph his regent and moved to a family estate in Feldsberg (now Valtice), Czechoslovakia, where he later died on 25 July. Franz Joseph formally succeeded him as Franz Joseph II.^[44][45] Although Franz I had stated that he gave the regency to Franz Joseph due to his old age, it was speculated that he did not wish to remain in control of the principality in the event that Germany were to invade, primarily because his wife Elsa, Princess of Liechtenstein was of Jewish relation.^[46][47] As a reaction to the formation of the coalition government, Liechtenstein Nazis formed the German National Movement in Liechtenstein (VDBL) in 1938.^[48]

Beginning in 1938, Hoop was faced with pressure to transfer the Ellhorn mountain to Switzerland. Although Hoop was supportive of the transfer, he argued that Liechtenstein should be fairly compensated for the loss of territory, such as through the transfer of Swiss land elsewhere or greater banking cooperation between the two countries. The proposition faced resistance from the residents in Balzers and was not approved by Franz Joseph II.^[49][50] Due to these pressures and also facing unofficial objections from Germany, Hoop was forced to end negotiations with Switzerland.^[51]

Relations with Germany and 1939 putsch

From 2 to 3 March 1939, Franz Josef II, Hoop, and Vogt paid a courtesy visit to Berlin, where they met Adolf Hitler and Joachim von Ribbentrop.^[52] Hitler met Franz Joseph II and Hoop for a thirty-minute meeting, where they discussed safeguarding Liechtenstein's independence and neutrality while maintaining good relations; no negotiations took place.^[38][52] Franz Joseph II later reminisced on the visit and stated that Hitler had showed little interest in them and that it only took place in order to "flatter Hitler's ego".^[53]

On 24 March 1939, the 1939 putsch took place. The plan was for the VDBL to march on the capital of Vaduz, which they hoped would cause clashes between them and the government. German troops from Feldkirch would have then moved into Liechtenstein in response to a call for help and incorporate the country into Germany. However, the plan failed as the VDBL was stopped by opponents outside Schaan, and a German invasion was blocked by figures such as Vogt, Meissner, and Heinrich Georg Stahmer; the latter of whom had lobbied Hitler and von Ribbentrop against an invasion of Liechtenstein.^[54]

On the day of the attempted coup, Hoop called Berlin from Lugano and was assured that orders were given against a German invasion of Liechtenstein.^[55] Shortly afterwards, Hoop provided a report to Hermann E. Sieger, who had been Hoop's primary German contact since 1933, confirming that the attempted coup had been conducted by a small extremist group, that Liechtenstein wished to remain in a customs union with Switzerland, and that Hoop's government wished to preserve diplomatic relations with Germany, which Sieger then forwarded to the Foreign Office.^[56][57] On 27 March, Hoop met with local authorities in Feldkirch, who denied any involvement in the attempted coup.^[58]

Sieger, who had long pushed for Hoop to consider forming a customs union with Germany, again pushed for it following the attempted coup; Hoop rejected this, however, stating that the vast majority of Liechtensteiners would not be willing to give up the customs union with Switzerland. In contrast to Hoop's objections, Sieger reported to the Foreign Office that public opinion in Liechtenstein was shifting toward economic integration with Germany, and that Hoop should be pressured "personally and privately" to move toward it. However, the office rejected the notion and ordered Sieger to not take any more steps towards it.^[59]

World War II

Throughout World War II, Hoop considered friendly, non-binding, non-provocative diplomacy to be appropriate towards Germany, supplemented by courtesy gestures. In 1940, during a lecture in Stuttgart, Hoop showed respect for the German armies.^[1] Hoop rejected the fascist tendencies of the VDBL, but did not take direct action against it.^[1][60] Instead, its actions were heavily restricted; the VDBL was forbidden from holding public meetings, flags, and marches.^[60] Despite this, the VDBL instigated political unrest such as fights, bombing attacks, and the burning of swastikas.^[48] Conversely, the Liechtenstein Loyalty Association had been founded in 1939 to oppose the VDBL and maintain Liechtenstein's independence.^[61] Hoop attempted to temper the relations between these groups and prevent tensions from escalating into violence.^[1]

At the same time, he tied the country as closely as possible to Switzerland during the war in hopes of retaining Liechtenstein's neutrality.^[1] At the start of the war, Hoop's government was given extensive powers to manage the economy and it applied several Swiss war economy laws to Liechtenstein; he achieved the de facto inclusion of Liechtenstein in the Swiss national supply.^[1][62] However, Swiss distrust of Liechtenstein's official stance grew, primarily due to the actions of the VDBL, and the Swiss government demanded that Hoop's government publicly declare its allegiance to Switzerland, which it did on 5 November 1940. In exchange, Switzerland agreed to a new alien police agreement that allowed Liechtenstein workers to freely travel and work in Switzerland.^[60]

Throughout the war, Hoop worked closely with Franz Joseph II, but this relationship strained in the later years. This was primarily caused when Franz Joseph II reopened the Embassy in Bern in 1944, against the wishes of Hoop's government and the Landtag, and then further in May 1945 when Hoop granted Sieger asylum in Liechtenstein.^[1][57][63]

Resignation

In September 1945, after serving as prime minister for seventeen years, Hoop formally resigned due to his worsening heart condition and his desire to move on from the role.^[11][64] He also remarked that Franz Joseph II had pressured him to do so, as the prince believed that post-war Liechtenstein required a change in leadership. This belief stemmed from an ongoing diplomatic crisis involving the pro-Axis First Russian National Army led by General Boris Smyslovsky, which had taken refuge in Liechtenstein a few months prior.^[63][65][66] This de facto dismissal of Hoop angered many within the FBP.^[1] He was succeeded by Alexander Frick.^[11][64]

In popular culture

Josef Hoop was portrayed by French actor Pierre Vaneck in the film Vent d'est, released in 1993.^[77]