Sealand

Rising from the North Sea on its two concrete towers six miles off the English coast is the Principality of Sealand. Barely larger than a football field, this old seafort platform is the seat of a government proclaiming its legitimacy for 28 years.

The artificial island of Sealand is one of many forts built by the British Army in 1943. These forts were built in England's territorial waters. Sealand, then called Royal Fort Rough, was, however, inadvertently built outside the three-mile limit then in force.

Roy Bates, now 73, an ex-infantry officer, former owner of a large fishing fleet and successful businessman, occupied the platform and settled on it with his family in 1965. Two years later on Sept. 2, 1967, he declared it independent. Royal Fort Rough became the Principality of Sealand and the businessman became a Prince and his wife a Princess.

Because international law did not mention high-sea artificial installations, Prince Roy Bates of Sealand was free to create a state. "What we have done is unique and could never be done again," said Princess Joan Bates of Sealand. "When they saw what we were doing they wrote a law blocking the legal loop-hole."

"Of course people are not going to shout that they recognize our state," she said, "but thanks to legal precedents that we established it is now clear that our sovereignty is recognized."

When Great Britain increased its territorial waters to 12 miles in October 1987, Sealand government did the same with its own territorial waters.

The Principality of Sealand claims to be a tax haven with its own constitution, flag, money, stamps, and even a national anthem.

Its government and nationals number nearly one hundred professional lawyers, engineers, and architects sprayed over the world working for Sealand's recognition.

Sealand isn't without mysteries and secrets. After months of phone conversations with the Princess, faxes, and letters, Prince Roy Bates of Sealand could not be contacted.

Adrien Oomen, a lawyer at the Bar of the Hague, calls himself a legal advisor for the Principality, and explained that a seat of the Principality exists in Austria and that the Foreign Affairs Minister, Josef Baier, will answer any queries. The minister, obviously surprised by this journalist's interest in the island, refused to answer questions on the phone and requested they be sent by fax.

In the meantime, Oomen agreed to talk. In a phone interview from his office he said, "A few years ago I tried to have the Principality recognized by the International Court of Justice but perhaps to avoid creating a precedent, they never answered my letters."

In Great Britain, Dominique Schroeder, a Foreign Office spokesman, said he knew of Sealand but that Britain has never officially recognized it.

Although Sealand's existence appears to be universally and officially ignored, its diplomats have achieved de facto international recognition. "Our government travels with diplomatic Sealand passports and it works very well," Oomen said. "We have been granted many entry visas. According to Baier, "Between 1981 and 1994, eight embassies in various countries, including Belgium and Austria, have granted Sealand's diplomats 27 visas."

Another form of recognition was described in a law review article Oomen wrote about Sealand's difficulties in obtaining international recognition. He described a confrontation between the Principality and England's Royal Navy.

Soon after Prince Roy Bates of Sealand and his family settled on the island, the Navy often came to observe their whereabouts. Daughter Penelope happened to be a charming lady and her beauty caught the sailors' attention, who sang of her attributes in a way that provoked the Prince's anger. He took upon himself to revenge his daughter's slight and declared war on the vessel, firing Sealand's guns until the ship disappeared.

Roy Bates was brought to court in Chelmsford, Essex, for illegal possession of weapons. In 1968 the tribunal ruled that it was incompetent in the case, having no jurisdiction in the high-sea. That constituted Sealand's first recognition, wrote Oomen.

Three years later, French President Pompidou recognized the Principality when he wrote Sealand a thank-you note for stamps he had received.

When it comes to financial matters Oomen was less talkative. "For the moment only a state company is registered on Sealand." He refused to comment on its activities but said that "Those who know Sealand's secrets will tell you that we are very, very rich." Baier said "the Principality's main purpose is international trade."

Business is conducted from a state company, Sealand Trade Corporation, registered in Germany. Sealand has already signed two agreements with free trade areas in Europe and two others in the Middle East.

The company's turnover grew from $2 billion in 1990 to $2.2 billion the following year.

According to Oomen, Great Britain does not include Sealand in its territory because its residents' incomes from Germany that are transferred to the island aren't taxed.

"The double taxation problem is not yet finalized," he said, "but it is already proven that Sealand is not included in the Anglo-German tax treaty. What's more, Sealand Trade Corporation has recently been issued a European VAT number and has been exempted of tax as a state company."

Information gathered from the German Chamber of Commerce of Bielefeld show there are in reality two companies. The first, Sealand Warenhandels-und Vertriebsgesellschaft mbH, is a limited company with headquarters in Rheda-Wiedenbruck. It is involved in national and international trade of goods, real-estate investments, and financial services.

The second one has the same activities as the first one. Sealand Warenhandels-und Vertriebsgesellschaft mbH und CO KG is a limited partnership in which the limited liability company acts as the general partner. The only limited partner is Stefan Seiger, a student in Lippstadt.

Sealand and its residents have plans. "We are creating a consortium to take over the island and develop it," said Princess Joan of Sealand. "There will be land and buildings on it. That will be a leisure island and people will come to do business and show their goods. We want to create a Hong Kong in Europe."

While grand projects are still on the drawing boards, nothing much has been done in the last 30 years on Sealand and according to Oomen things aren't likely to change until he and Prince Roy Bates of Sealand are talking again.

"We are at odds since the civil-war," he said, "we disagreed on the way Sealand's affairs should be treated."

What Oomen calls a "civil-war," Princess Joan calls "kidnapping." But whatever it is called it is the origin of a split between the Bates family and Oomen and Sealand's men in Germany and Austria.

Princess Joan clarified. "Oomen was among a group of businessmen with whom my husband refused to work. While we were on a business trip in Austria, a group of armed men landed a helicopter on Sealand and took our son Michael hostage."

"Once back in England my husband and four friends jumped in a helicopter and flying low above the sea, they reached the island. Sliding from the helicopter on ropes they took the kidnappers by surprise and took control without firing a shot."

Princess Joan of Sealand recalled the event as if it had happened yesterday, her voice still trembling with excitement, the emotion strong. "Our life has always been rich in adventure. You cannot imagine all that took place on Sealand."