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But doesn't serving in a foreign army result in automatic loss of US citizenship?
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No. As explained above, essentially nothing causes automatic loss of US citizenship any more. If you join a foreign army, you can lose your US citizenship if you acted with the intent of giving it up. Otherwise, you can still keep it.
Current US law says that foreign military service will result in loss of US citizenship if the person served as an officer (commissioned or non-commissioned) or the foreign military force is engaged in hostilities against the US; the service was voluntary; and (most importantly) the person intended to give up his US citizenship.
Current US policy goes further. Unless a dual citizen is serving in a "policy level position" in a foreign government, commits treason against the US (e.g., by fighting the US voluntarily during wartime), or acts in a manner considered totally inconsistent with any possible intent to keep US citizenship, the State Department is unlikely to take any action. Further, the current policy statement on foreign military service recognizes that dual citizens sometimes find themselves legally obligated to participate in the military forces of their other country of citizenship, and can do so in such situations without endangering their US status.
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