From the beginning, the ghetto in Terezín was meant to fulfil a propagandistic function. The aim was to cover the true intentions of the Nazis regarding the fate of people they labeled as Jews.

The Nazis presented Terezín to the rest of the world as a place where life went on just like in any other small town. The war failures of Nazi Germany together with an increasing pressure from some international organisations resulted in allowing two visits of representatives of the International Committee of the Red Cross in the ghetto. Nevertheless, both of the visits were abused for Nazi propaganda. The visits went on in accordance with the scenario prepared by the Nazis in advance; the prisoners had to pretend they had not suffered any harm.

The buildings around the main square were given new functions during the preparations for the first visit of the Red Cross representatives. In 1943 a "bank" was established on the ground floor of the town hall of Terezín, but it was not a real financial institution. There was a café in one of the corners of the square. It was open in December 1942, a prisoner with an entrance ticket could sit there for about two hours, have a drink of false coffee or tea and watch a cabaret programme or listen to live music. Next to the café there was a "fashion store" selling items confiscated from the incoming prisoners immediately after their arrival to Terezín. The look of the square was changed: from a place where previously stood three tents housing a forced labor factory operation it was developed to resemble a park.

The first Red Cross delegation arrived to Terezín in June 1944 and the head of the delegation wrote a very positive report about the conditions in the ghetto.