Plot
The fictional European microstate of Lampidorra has "no taxes, no quotas, no tariffs, no forms to fill in". Its two thousand residents make their money from the national (and legal) profession of smuggling to and from its neighbors: France, Italy, and Switzerland. However, the country falls on hard times and becomes bankrupt.
The small state seeks the financial support of the United States in the guise of a rich American who buys the whole country for $100,000. When he dies shortly afterward, Lampidorra is inherited by his distant relative, Lindy Smith, a Macy's shopgirl.
On the way to her new realm, Lindy meets Tony Craig, an inexperienced British salesman trying to sell cheese to the Swiss. When she arrives in Lampidorra, Lindy is met by the ruling triumvirate: the Chancellor, who is a cobbler; the Burgomeister, who is a policeman; and the Minister of Finance, who is a blacksmith. As her first royal decree, she outlaws smuggling. However, this exacerbates the financial crisis, as her inheritance will be tied up for at least six months by legalities.
By chance, teetotaler Lindy gets a bit tipsy when she samples Lampidorran "schneese", a cheese made with Schnapps. She decides it would make a terrific export and has Tony brought to her to help market it. The alcoholic cheese is a sensation, but the other European nations soon respond to the threat to their own cheese industries by imposing tariffs. Lampidorra turns to its traditional smuggling expertise to avoid paying them.
Tony falls in love with Lindy and proposes, but an intercepted telegram from his employer leads Lindy to wrongly suspect he is just after the secret recipe for schneese. The misunderstanding is eventually cleared up. In the end, Lindy finally receives her full inheritance, allowing her to bail out her subjects and depart with Tony.
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