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From 1867 to 1984, the United States did not have diplomatic relations with the Holy See due to rumors of Catholic implication in the Lincoln assassination. The critics finally won out in 1867 when the US Congress withdrew all funding for the legation in Rome. However, relations were reestablished after this period, and the Vatican City Stateโs territorial independence was confirmed in the Lateran Treaty signed by Italy and the Holy See in 1929 1. 2.
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1
en.wikipedia.org
2
state.gov