On their way to New York City for the Fourth of July, a storm forces the Littles to crash near the Statue of Liberty. Inside the statue they discover a community of French Littles ruled by a General. The French Littles wake up to the world around them and realize they have been living without the most important thing to them -- Liberty. The General is arrested and promised a fair trial and the French Littles start making plans for elections to guarantee nothing like this will happen again.
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