Abstract
For a dilute magnetic alloy the two‐body Coulomb interaction U is replaced by the interaction with two external fields, and the partition function is then transformed into a Gaussian average over these fields. In the case of static external fields the magnetic susceptibility is calculated. When A(0) U > 1 there are localized magnetic moments which have a Curie‐law susceptibility with the correct limiting value of the Curie constant for large U. When A(0) U < 1 there are no moments and the susceptibility is temperature independent approaching the correct Pauli‐enhanced susceptibility.