 The town was almost entirely ethnic German, however, and was ceded to Nazi Germany along with the rest of the Sudetenland after the Munich Agreement in 1938.In 1943, during World War II, two forced labor camps were set up in the area by Organization Schmelt.These camps provided workers for the Tannwald Textile Works and an ammunition factory ("Deutsche Industriewerke AG") that produced hand grenades and other military material for the armed forces of Germany.