This concern was heightened by perceptions that Liechtenstein was susceptible to annexation into Nazi Germany in the wake of the Anschluss of Austria.

The transfer faced resistance from the residents in Balzers, and was not supported by Franz Joseph II, the ruling Prince of Liechtenstein.

[3][4] In addition to unofficial objections from Nazi Germany, the lack of support forced Hoop to end negotiations with Switzerland.

[2][5] Despite the community in Balzers again objecting in November 1948, the transfer was approved by the Landtag of Liechtenstein the following month and finalised in 1949.

In exchange for the transfer, Switzerland agreed to forgive much of Liechtenstein's debt incurred during World War II.