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How is it possible for a country to exist with virtually no territory?

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How is it possible for a country to exist with virtually no territory?

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Several such recognised states already exist. The Vatican City for example possesses only a few hectares of land and has a mere handful of citizens, whilst the Sovereign Military Order of Malta has existed as a state without territory since its expulsion from the island of Malta nearly two centuries ago. Both of the aforementioned are widely recognised by UN Member States, including the United States.

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