A small independent central European state, situated between the southeastern tip of Belgium, with Germany on the east and France in the south and west, the Grand Duchy of Luxemburg has an area of 999 sq. mi. and had a population in 1936 of 296,776 inhabitants, a decrease of 4,217 from the 1931 census. The principal occupations are agriculture and mining. About 32 per cent of the population is engaged in agriculture and the raising of livestock. The most important crops are potatoes and oats. The mining works comprise 35 blast furnaces and 7 steel plants for the making of iron, steel, and its alloys.
The government is administered by the Grand Duchess Charlotte, who succeeded to the throne in 1919. Her ministers, the Chamber of Deputies, and the Council of State control the Government in her name. Governmental revenues in 1938 amounted to 344,356,518 francs and expenditures to 334,458,634 francs.
On April 22, 1939, the Duchy of Luxemburg celebrated the 100th Anniversary of its independence. The outbreak of the war in Europe in September 1939 brought difficulties to the small country because of its position between France and Germany. On Aug. 22, the Luxemburg Government held a conference with the Government of Belgium and a number of other small states in order to frame a neutrality declaration. On Aug. 27, the German Government assured Luxemburg that her neutrality would be respected. On Sept. 5, after actual fighting began, the Government sent a commission to Belgium to discuss the removal of Luxemburg residents to Belgian territory in case of emergency. Foreigners were forbidden in the border town of Schengen, which lies directly between the frontiers of France and Germany; and on Sept. 18, the Government decreed the institution of a voluntary defense corps of 125 men to augment the regular army of 300 soldiers and 250 gendarmes.
In September 1939 Crown Prince Jean and Prince Felix of Luxemburg visited the United States.
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