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A country you've never heard of {Gadling}
Jan 4th 2008 2:44PM You missed the real smallest nation in the world.
It is located within Rome and it is not the Vatican State. It is the state of the Knights of Malta on the Aventine hill. It is recognized as a nation by over 80 countries with whom it exchanges diplomatic representatives, issues its own recognized passport. It is right next to the world headquarters for the Dominican Order, the Santa Sabina. They have a business office downtown (also extraterritorial) a few blocks from the foot of the Spanish Steps.