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46o HARVARD BUSINESS REPORTS
friendly way with representatives of the industry for the unrestricted importation of films.
It is, therefore, the earnest hope of the government of the United States that the governments to whom it is making representations will have appropriate steps taken to avoid the serious injury to which American motion picture producers are subject by restrictive regulations, and which it feels must eventually prove a hindrance to international development of the motion picture industry.
American interests desired the abandonment of all contingent and quota regulations, particularly when the purpose of such regulations was to subsidize motion picture producers. American representatives pointed out that their organizations had expended large sums in building up a business in France. It was estimated that the gross receipts from the distribution of American pictures in France approximated from i% to 2% of the total foreign revenue of the larger American companies. In addition to the loss of sales it was estimated that a loss in theater and real estate investments of approximately $5,000,000 would be suffered by three of the largest companies if new regulations made it unprofitable to maintain distribution in France.
The French motion picture industry was not in complete accord as to the wisdom of more stringent import restrictions. Within the Chambre Syndicale de la Cinematographic Francaise (French Motion Picture Chamber of Commerce), there were separate organizations of exhibitors, distributors, and producers, whose interests were of such a conflicting nature that a divergence of effort was apparent during the consideration of the film decree by the government.
French exhibitors, particularly in the provinces, expressed sympathy with the American position in the controversy. American pictures were relatively popular; it was reported that 63% of the total number of play dates in French theaters were for American pictures.4 At an exhibitors' convention, many argued that a quota plan might be of assistance to the small number of French producers but that it was of no benefit to the rank and file of theater operators. A protest in the form of a petition signed by 2,500 exhibitors was prepared which declared that the exclusion of American pictures would cause the theaters and the government to suffer heavy financial loss, and deplored the patriotic issue of a
4 Film Daily Year Book, 1929, p. 1021.