There was a period in the 1950's when exchange rates were such that it was economic U.S. companies to have contract built machines done in Germany.
Would expect rear hub to be a Torpedo and threading of steerer and bottom bracket shell to be BSC.
If we enlarge the image of the head tube we can see that at the bottom it reads "PRECISION ENGINEERED". Expect there would have been a transfer or stencil at the top of the head tube, where the rusting crack is now seen, reading something to the effect "MADE IN WESTERN GERMANY." We can just make out part of the S in WESTERN.
The cycle's chainset looks to be some variant of a Thun pattern set. Note that on the left crank arm the hole for the bottom bracket spindle does not go all the way through.
Missing drive chain likely was a Union produced by Union Frondenberg.
Have seen other Royce Union from this era produced in Germany. The forum has had some.
There was a period in the early to mid 1960's when many R-U cycles came from Italy.