It's been exactly one year since the Princely Navy made its initial mark on the international stage by gaining a respectable 16th place in the Hong Kong Year 2000 Dragon Boat Race. Although a first quartile finish was rather satisfying for such a young force at the time, it did by no means represent the Liechtenstein Princely Navy's true combat capabilities.

No later than after the last bottle of champagne had been drunk dry, the Admiralty therefore set out to conduct a serious in-depth analysis of the Princely Navy's pockets of strength and - more importantly - its areas of weakness which needed to be addressed. After an initial assessment the Admiralty concluded that its sailors were (1) extremely motivated, (2) extremely well trained, but (3) extremely underpaid.

Since the Admiralty was of the opinion that a hungry but motivated Navy had the most superior chances of success we immediately set out to recruit a fresh team of selfless patriots and foreign mercenaries to fight in the name of Prince and Country at the 2001 Dragon Boat Race.

A rigorous training regime was laid out months ahead and only the finest sailors with impeccable Navy credentials were selected for the 20-strong team. A new drummer was hired, too, who would fit the Navy's requirements of (a) being female, (b) being able to motivate a boatload of adrenaline-pumping mariners and (c) having a remote sense of rhythm.

Initial practice results were by no means encouraging. Different to last year, no boat was sunk during training, but the participation rate was extremely poor - to the extent that the Admiralty had to threaten court-martials and forced expulsions from the Navy for non-attendance. Morale dropped to a low point and, to add insult to injury, the Princely Navy's beer supplies were stolen during one practice session - most probably by the competing Swiss team, an incident the Liechtenstein Princely Navy would not take lightly.

And thus came Race Day - June 25, 2001 - with 143 teams lined up for the competition. The Princely Navy's initial race was scheduled for an early start: 0815 hours. The Admiralty's Meteorological Service reported heavy rains and rough seas at 0600 hours but conditions improved markedly by the time the Navy was assembled on Stanley Main Beach. On command, the designated boat no. 9 was boarded by the Navy - and sank immediately. Obviously, the previous team had taken on far too much water, providing the Princely Navy with an unforeseen warm-up exercise. The Princely submarine was eventually re-floated and brought into position at the starting line alongside nine other teams, including last year's fourth-placed Merrill Marines. Also present were Lucent Technologies, which - according to naval intelligence sources - were mostly running on inflated expectations.

The Princely Navy managed a decent start but competition was fierce. A tight finish put Liechtenstein in a somewhat disappointing fifth place, thus relegating the team to the Plate - as opposed to the Cup - Championship.

The second round was now scheduled for 1415 hours, providing the Admiralty with plenty of time to rethink its strategy and to refresh its sailors on board the Princely Yacht, moored alongside the racecourse. Motivation was by no means lost - it was very soon clear that the only goal available now was to win the Plate Championship outright. Failure was not an option.

Having refueled its naval force on a strict intake of Carlsberg and Bratwurst, the Liechtenstein Princely Navy regrouped for Round Two. The challenge was formidable: out of ten teams, which included Deutsche Bank and the notorious UBS Warburg Warriors, only the first two would advance to the final. Without incident, the Navy proceeded to the start, where an immediate intimidation campaign (loud shouts of "LIECHTENSTEEEEEEEEIN") was launched against rival teams. As the starting gun went off, the Princely Navy's well-rehearsed takeoff sequence was faultless and the boat gained impressive speed. Half way down the 300-meter course length the Navy's stamina became apparent as many teams fell by the wayside. Our proud Navy came in second, thus securing Liechtenstein a place in the final.

While the Admiralty has never doubted the quality of its naval force, a place in the final was unprecedented. We were now firmly on course for an all-out victory. With the final scheduled for 1630 hours, the Navy had just time enough for a short retreat and a brief interview with CNN (excerpts of which were aired later that day across the world).

By the time we headed for the final race, the weather had deteriorated significantly. You were now either wet, very wet or completely soaked. Despite these adverse conditions (or perhaps because of it), the Liechtenstein Princely Navy was fully prepared and motivated for a battle of apocalyptic proportions. The pressure was intense, requiring utmost concentration by each and every sailor (which, despite minor intoxication, was still possible). The final confrontation turned into a blood bath for most competitors, with the Liechtenstein Princely Navy emerging as a victorious second, just ahead of the third-placed Baker Boys (Baker McKenzie).

Second place in the Plate Championship is an outstanding result in many respects. The Liechtenstein Princely Navy was the only banking-backed team in the Top 10, leaving venerable teams such as Goldman's Gondoliers, Credit Suisse First Boston (wearing red shirts with a ridiculously miss-proportioned Swiss cross), Dresdner Bank, Deutsche Bank and UBS Warburg Warriors miles behind. Only Merrill Marines and Morgan Stanley managed a better result in the Cup Championship.

This has clearly been the finest hour in the young history of the Liechtenstein Princely Navy, thus firmly establishing it as one of the most formidable naval forces in the South China Sea with a proven reputation for strength, stamina and strategic superiority. The Admiralty wishes to thank all its hard-working crew, its sole sponsor LGT Bank in Liechtenstein and its army of dedicated supporters and friends for their commitment and contribution to a successful conquest. We look forward to pushing the limits further next year.