The setting is Casablanca during the Second World War, not long after the fall of France, December 1941 is the date mentioned by Rick in the film. Refugees are flooding into Casablanca to escape the ever-spreading threat of Nazism. Casablanca is the jump off point to Spain and then on to America and freedom. However, refugees must first obtain a very expensive Exit Visa before boarding the plane out. They can be bought either semi-legally or through the Black Market.

Rick Blaine, played by Bogart, is an exiled American living in Casablanca and owns the most popular bar in town known as Rick's Café Americain. We are never informed why Rick can't return to the States. However, Captain of Police Louis Renault, played by Claude Rains, and who is a bit of a romantic, would like to believe it's because Rick killed a man. Rick's bar is home to many shady characters doing many shady deals but he has nothing to do with any of it, nor does he want to get involved in local or world politics, or so he says, so he remains completely neutral as to what side he's rooting for in the war.

Off the street appears Ugarte, played by Peter Lorre, with two very special Letters of Transit, which give the bearers the ability to leave Casablanca with no questions asked. Rick doesn't think too much of Ugarte until he finds out that two German couriers were killed to obtain the letters. Rick then seems to warm up to him a bit. Ugarte asks Rick to hold the letters for him until his client shows up to buy them, which Rick does. In the meantime, Ugarte is arrested and killed either while trying to escape or by commiting suicide, it seems the head Nazi, Major Strasser, played by Conrad Veidt, and Captain Renault haven't quite made up their minds yet as to which scenario applies.

Then one night into his café walks Ilsa Lund, played by Ingrid Bergman, with hubby Victor Laszlo, played by Paul Henreid, in tow. Ilsa recognizes the piano player Sam, played by Dooley Wilson, and inquires as to Rick's whereabouts and asks Sam to play the song "As Time Goes By", which he does rather reluctantly. Rick apparently doesn't like this song and comes storming over to give Sam hell for playing it, then stops dead in his tracks when he spots Ilsa.

Flashbacks reveal that the two had had a torrid love affair in Paris just as the Germans were invading. They were supposed to leave Paris together but Ilsa stood Rick up at the train station, so he and Sam went on alone. This left Rick feeling very bitter toward Ilsa.

Her husband Victor is a major leader in the Resistance Movement against the Nazis and must leave Casablanca before he mysteriously disappears. Unfortunately for them they can't obtain the necessary papers needed to exit the country from the usual sources due to Nazi interference from Major Strasser.

Rick has just what they need. The Laszlo's are informed by Senor Farrari, played by Sidney Greenstreet, leader of all illegal activities in Casablanca and owner of The Blue Parrot, which is the second most popular bar in town and, that Rick might just have what they seek. But Rick remembers all too well being dumped in Paris and he absolutely refuses to help the Laszlo's flee the country...

Ilsa comes to Rick in the night and threatens him with a gun, but when this doesn't work, she pledges her undying love and says she will stay behind with him if only he will give Victor the papers to leave the country. Rick agrees and sells his bar to Senor Farrari. He then informs Captain Renault that he can arrest Victor at the saloon holding the much sought after papers. When Louis arrives and tries to arrest Victor, Rick pulls a gun on him and forces him to call the police station to clear a way to the airport. However, Louis actually calls Major Strasser who then heads out to the airport and is shot by Rick. Ilsa and Laszlo are on the plane to Lissabon. Rick and Louis leave Casablanca together.

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