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The Duchy of Fenwick, which is ruled by the addled dowager Grand Duchess Gloriana XIII, falls into dire financial straits when its only source of income, the sale of wine, falls off because each bottle explodes when opened. The local beatniks are protesting conditions, but Prime Minister Mountjoy is more concerned about his inability to raise funds for improving the indoor plumbing at the royal castle. Striking upon the idea of once more asking the United States for financial aid, he does so by pretending that Fenwick wants to participate in the race for putting a man on the moon. Washington promptly responds with a million-dollar grant, and the Russians, anxious to offset America's propaganda advantage, give the tiny nation one of their obsolete rockets. Britain becomes suspicious and sends their master spy, Spender, to investigate the international intrigue. At this point, Professor Kokintz, the Duchy's scientist, discovers that Fenwick's wine is perfect for rocket fuel, and he and Mountjoy's son, Vincent, who wants to impress his beatnik girl friend Cynthia, decide to attempt a launching. Although the launching is expected to be disastrous, the rocket actually takes off and sails to the moon, pursued by American and Russian spaceships. As the Fenwick flag is triumphantly placed on the moon, the American and Russian rockets get sucked into the moon's soft surface. Gracious to the end, the Fenwickians gallantly offer their rivals a free trip back to a rejoicing Fenwick.