The economy of the teeny-tiny European duchy of Grand Fenwick is threatened when an American manufacturer comes up with an imitation of Fenwick's sole export, its fabled wine. Crafty prime minister Count Mountjoy comes up with a plan: Grand Fenwick will declare war on the United States. Grand Duchess Gloriana is hesitant: how can meek little Grand Fenwick win such a conflict? Mountjoy explains that the plan is to lose the war, then rely upon American foreign aid to replenish Grand Fenwick's treasury. Bumbling military officer Tully Bascombe leads his country's ragtag army into battle. They cross the Atlantic in an ancient wooden vessel, then set foot on Manhattan Island, fully prepared to down weapons and surrender. But New York City is deserted, due to an air raid drill. While wandering around, Bascombe comes upon atomic scientist Professor Kokintz and the scientist's pretty daughter Helen. Kokintz has been working on the deadly "Q Bomb," a football-sized weapon with the destructive capacity of a hundred hydrogen bombs. Suddenly seized with patriotic fervor, Tully captures Kokintz, his daughter and the bomb and brings them all back to Grand Fenwick. Tully has "won" the war-precisely what he'd been told not to do. The upshot of this "victory" is that every world power converges upon Grand Fenwick to claim the Q Bomb for themselves.