MONACO PRINCE VALIANT PEACE CAME LAST WEEK IN THE BITTER STRUGGLE BETWEEN 
THE RIVIERA RIVALS, FRANCE AND MONACO . " THERE WERE CONCESSIONS 
ON BOTH SIDES, " INSISTED A FRENCH DIPLOMAT . TRUE ENOUGH, 
BUT WHO ELSE THESE DAYS IS WRINGING CONCESSIONS FROM CHARLES DE 
GAULLE .Q? NOT KENNEDY, MACMILLAN OR KHRUSHCHEV . ONLY STUBBORN, TENACIOUS 
PRINCE RAINIER . THE CRISIS BEGAN LAST YEAR, WHEN FRANCE ISSUED 
AN ULTIMATUM ORDERING MONACO TO ALIGN ITS TAX STRUCTURE WITH FRANCE 
AND END ITS STATUS AS A HAVEN FOR FREELOADING FRENCH CORPORATIONS 
AND BUSINESSMEN . THE MONEGASQUES, ENRAGED AT THE PROSPECT OF LOSING 
THEIR FREEDOM TO PAY NO INCOME TAX TO ANYONE, RALLIED BEHIND 
THEIR PRINCE . RAINIER STRUCK BACK AT DE GAULLE BY ISSUING 
A SERIES OF THREE STAMPS COMMEMORATING LOUIS XI'S RECOGNITION OF MONACO'S 
INDEPENDENCE IN 1512 . BOTH SIDES MOBILIZED THEIR RESOURCES . FRANCE 
HAD NUCLEAR BOMBS AND 600,000 BATTLETESTED SOLDIERS V . MONACO'S 80-MAN 
PALACE GUARD AND 170 POLICEMEN . FRANCE COULD ALSO CUT OFF 
MONACO'S GAS, ELECTRICITY, POSTAL AND TELEGRAPH SERVICES . BUT MONACO HAD 
A SHARPER WEAPON : RIDICULE . MOREOVER, PRINCE RAINER'S LITTLE PRINCIPALITY 
COULD HALT THE " BLUE TRAIN " AS IT PASSED THROUGH 
MONTE CARLO TO THE ITALIAN BORDER, AND COULD REVOKE ITS AGREEMENT 
TO COLLECT GARBAGE IN THE ADJACENT FRENCH TOWN OF BEAUSOLEIL . 
THERE WERE SOME TENSE MOMENTS LAST FALL WHEN FRENCH POLICE SET 
UP A CUSTOMS POST AT MONACO'S BORDER AND BEGAN STOPPING CARS, 
BUT COOLER HEADS AT LAST PREVAILED . THROUGHOUT THE LONG WINTER 
MONTHS, DELEGATES OF BOTH STATES HAMMERED OUT SIX SEPARATE TREATIES COVERING 
EVERYTHING FROM TAXES (NO INCOME TAX FOR MONEGASQUES OR LONGTIME FRENCH 
RESIDENTS OF THE PRINCIPALITY) TO POSTAL RATES . MONACO EMERGED LARGELY 
VICTORIOUS . WHEN THE TREATY WAS SIGNED LAST WEEK, PRINCE RAINIER 
AND PRINCESS GRACE ENDED A TOUR OF THE U.S., FLEW BACK 
HOME TO RECEIVE A GRATEFUL WELCOME FROM THEIR STILL TAXFREE MONEGASQUE 
SUBJECTS . 