Year book of motion pictures (1951)

ago embarked on a prgroram of encouragement to the domestic industry by direct and indirect subsidy. Licenses necessary to import foreign feature lilms are granted only to Spanish film producers, the number of import permits issued being dependent upon the classification of the domestic films produced. The producer may use the import license to bring in under his own name foreign films or he may sell the license at whatever the market will bear. In effect this provides a subsidy for the Spanish producer and limits the number of films that may be imported to the number of licenses earned by the Spanish producing industry. Import permits issued totaled 53 in 1948; 52 in 1949; and 50 during the first 11 months of 1950. Imported films must be dubbed into the Spanish language in Spain, and dubbing permits are issued to producers on the basis of the number of fl'ms produced in Spain. These dubbing permits are sold on the open market and also provide an indirect subsidy to the Spanish producer. Spanish theaters must show a Spanish film one week out of six unless the film industry cannot provide the exhibitor with a Spanish production in which case he may continue to show foreign films. This is often the case. A newsreel must be shown on each theater program and the only newsreel permitted in Spain is the nationally produced "No-Do." No foreign exchange is being granted by Spanish foreign exchange authorities for film earnings. When U. S. fl'ms are admitted, it is specified that they be compensated by a barter deal, exchanging such films for Spanish films or other products. While the acute shortage of foreign exchange exists, it appears unlikely that any basic change in the situation will occur. SWEDEN — The Swedish foreign exchange control regulations made no provisions for the allocation of do-lar exchange for the transfer of any amount of film royalties earned during the past several years. Import licenses are required but are readily granted with the notation that approval of the import license does not authorize allocation of foreign exchange. Up to the present time it has been possible to obtain rawstock film, negatives, and prints as have been needed to maintain normal distribution in Sweden of United States fi!ms. SVVITZERL.VND — Imports of films are controlled by the Quasi-ofTicial Swiss Film Chamber in Bern, which issues im|)ort permits to holders of quotas. Quotas for the impoi-tation of films into Switzerland are based on the Federal Decree of July 7. 19,39. which granted distributors the right to import feature films to the same extent as imported during the 4-year period January 1935 through December 1938. The usual quota assigned to an importer is equal to at least 5/10 and at most 7/10 of the average number of 35mm. features he imported during this four year period. Provision is made for special cases, both for extra quotas for established importers and for assignment of quotas to importers who did not exist in 1938. Contingents are based on titles and are allotted to individual importers and not to countries. There are no restrictions on the transfer of foreign exchange. Government controls on film rentals were removed June 8. 1950. Prior to this action the Federal Price Control OflRce had established a cei'-ing ot 50 per cent of theater receipts as the distributors' maximum share. TURKEY — No quota or contingent measures which might reduce or prevent the distribution of U. S. motion pictures are in effect in Turkey. An import and foreign exchange permit must be obtained from the Turkish authorities. This permit can be obtained only after the motion picture has been approved by the Turkish Censorship Board. Although the transfer abroad of foreign exchange is strictly conti-olled. up to the present time, no difficulty has been encountered in obtaining dollars to pay for imported motion pictures. Because of the natuie of exchange regulations, United States film companies are not operating in Turkey as distributors of their films. Copies of their films are sold outright to Turkish distributors rather than leasing them on a percentage basis as is done in practically every major market in the world. The absence of use of the lease basis of distribution arises from the fact that the proceeds of any foreign capital invested in Turkey are blocked and can be transferred only in the form of certain domestic products, except when special arrangements have been made by foreign firms with the Turkish Ministry of Finance. Motion picture imports are subject to a transaction tax, which is assessed on most types of processed and semi-processed goods, imported into Turkey at a rate of 18 per cent of landed cost (which is defined to include customs duties and various miscellaneous taxes). In March 1948, the Turkish fiscal authorities ruled that not only was the motion picture films involved in imported copies subject to this tax but that the royalties or their equivalent were to be included in calculating the basis of the tax. In spite of strong protests by importers and distributors, since that date the 18 per cent transaction tax has been levied on the royalty as well as the cost of the films used in imported copies. There is also a substantial admissions tax differential in favor of Turkish films which gives a strong impetus to the domestic industry. All efforts to have this differential reduced or removed have failed. U,S.S.K, — -The Soviet film industry is a Government monopoly under the jurisdiction of the Ministry of the Motion Picture Industry, and both domestic production and importation of foreign films are subject to the regulations of this ministry. In September 1948 an ag'reement was negotiated providing for the purchase of United States feature films for showing in Russia with pajTuent to be made in dollars. However, delays were encountered in obtaining final Soviet approval of the agreement and no United States films were released in Russia, UNITED KINGDOM — The new Anglo-American Film Agreement of October 1, 1950, signed by the British Board of Trade and the United States motion picture industry again provides for annual remittances of $17,000,000 but contains bonus provisions which are expected to bring total remittances to about $21,000,000. Specifically the agreement provides that during the 12-month period following October 1, 1950, the British Treasury will afford facilities for remittance in dollars, at the official rate of exchange, such amounts of American film revenues as will enable the following payments to be made: (1) $17,000,000 payable as a fixed amount in equal monthly installments: plus (2) the amounts stipulated in Appendix A of the agreement. Appendix A contains the bonus arrangements providing for remittance in dollars, from unremittable sterling, amounts equal to (a) 23 per cent of money spent, direct'y or indirectly for film production in the United Kingdom: (b) 50 per cent of payments to British interests for the distribution of Birtish films in the Western Hemisphere on a percentage basis: and (c) 50 per cent of such payments to British interests for the acquisition of rights within the Western Hemisphere, other than on a percentage basis, for British films, U. S. film revenues accruing during the year and not remitted under the above arrangements will be dealt with as follows: A schedule of permitted uses subject to agreed principles are outlined. Schedule A inc'.udes uses within the film industry in the sterling areas without limit as to amount: Schedule B includes uses outside the film industry within the sterling area without limit as to amount: and Schedule C encompasses temporary uivestments. not constituting a permanent use or disposal of the funds. A Control Committee representing the British Government and the U. S. Si'.m industry will control permitted expenditures under schedules and may approve expenditures for additional purposes. 724