This is a cover sent in 1940 during the WWII German reannexation period, from the post office Memel 2 (now Klaipėda, Lithuania) to Wiesbaden, Germany. At the time, most of the city's important functions were concentrated in New Town (Naujamiestis) including the city hall, main post office Memel 1, exchange building and so on, and the Old Town (Senamiestis) was rather an area with storage places for goods dealt at the port, pubs and cheap inns. The post office Memel 2 was located there. You can see the sender's address on the back of the cover, Mühlenstr was a part of the present Pilies street on the south eastern side of the former Memelburg castle site.
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