Peering into my magic smoke, I see the thought processes of the Seinfeld writers.
"We need Nazis who are popular in America but whom nobody in America has ever seen. Let's see. They would have to come from some other country. But it has to be a foreign country where the language is English. So the Nazis come from England? No, England is too well covered in the news. What else is there? South Africa? No, there's the distraction of a whole racial issue of their own over there. Australia? No, they have their problems with racism too and besides, no American racist kooks would rally around an Australian leader. Ireland? Not bad... say, it's even funny to think of Seinfeld and George trying to pass as Irish..."
Nosnivel