ABSTRACTThe debate about the political allegiance of Pius XII and the Vatican during the Second World War remains unresolved. As more documents become available, they enable historians, detractors and defenders alike, to develop a more nuanced view on this contentious issue. Files recently released by The National Archives1 come within this category. They reveal that during the Second World War the British government systematically intercepted, monitored, and recorded in detail the financial transactions listed in the bank statements of the main financial agencies of the State of Vatican City from 1941 to 1943. These documents provide a detailed, if occasionally incomplete, day by day and month by month record of the Vatican's sources of income, expenditure priorities, investment strategies, and movements of money throughout its global network under the difficult wartime conditions of foreign exchange controls, blocked sterling and dollar accounts, Freezing Orders, and Trading with the Enemy restrictions imposed by the belligerent parties. This article examines the light they shed on Vatican finances throughout that period and what new insights they provide into the role of Pius XII and the Vatican during the Second World War, and, in particular, into the question of where their sympathies lay throughout the duration of that conflict.
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