Motion Picture Herald (May-Jun 1946)

U. S. BREAKS DOWN '^"P"'-' Deal Reached FRENCH BARRIER Protection Part of Loan Deal; Czechoslovakian Impasse Breached Washington Bureau This week it was a certainty that U. S. product one again would enter France. And there was more good news, for as the official announcement came from State Department officials, it was learned that American pictures once again were to be shown in Czechoslavakia, although on a governmental rather than on a commercial basis. The French loan agreement was signed late Tuesday by Fred Vinston, Secretary of the Treasury. The agreement provides that the original' 1932 French-American trade agreement, disregarded since the war, will again be binding. The agreemeent is believed to be the first and only instance in which the industry has been singled out by the government for special consideration in the development of international trade documents. Establishes Precedent William Clayton, Assistant Secretary of State, indicated that the agreement establishes a precedent for the industry and that it would pave the way toward eliminating motion picture barriers throughout Europe. •"We in the Department gave this problem serious consideration and we believe it is a sound basis upon which to formulate agreements with other nations which erect barriers against American films," Mr. Clayton said. The agreement gives American films unrestricted opportunity to compete in the French market. However, the agreement does limit the playing time of imports to from four to six years. French exhibitors will be required to give native product four of the 13 weeks playing season for the first two years and provisions have been made for other ratios during the next two-year period. Had Admitted 188 Annually In pre-war years, the French had permitted the importation of 188 dubbed feature film? annually, without Governmental restrictions. U. S. product yearly accounted for about 150 of this total. The agreement does not place the U. S. in a less favorable position than in pre-war years, either in respect to France or any other country. Long and involved arguments have kept the ban against U. S. product in force ever since the war. Once, when an agreement almost had been reached, French producers reportedly exerted such pressure upon the government for preferential handling of native product that the whole Franco-American negotiation broke do^^^l. The State Department spokesman said in JOHNSTON SEES U. S. COOPERATION ABROAD Belief that the Motion Picture Association and the State Department will work hand in hand to eliminate export problems was expressed this week by Eric A. Johnston, MPA president, following discussions with James Byrnes, Secretary of State, concerning the barriers to the U. S. industry's commerce abroad. Mr. Johnston reported that Mr. Byrnes "has an excellent knowledge of the industry's problems". Washington at midweek, "trade conditions in general will be greatly improved as a result of this loan to France." The attention given film problems in connection with the loan was a \ery clear indications, it was felt in New York, tliat the industry and the State Department were working in close cooperation to eliminate any foreign barriers against the motion picture. Not Entirely Reopened Although the U. S. industry has regained a foothold in Czechoslovakia, once one of the best European markets, that country has not yet been entirely reopened, it was pointed out in New York this week. The agreement recently concluded in Prague was made on a governmental level rather than on a commercial basis and is concerned only with those 40 films prepared by the Office of War Information and sent to Czechoslovakia before the invasion of North Africa. Carl E. Milliken, in charge of foreign matters for the Motion Picture Association, reported the deal was regarded by the companies "as a part of this country's information program rather than as a commercial transaction." The deal was transacted, technically, by an agent of the Export Association working through the U. S. Embassy and was made without "any prejudice to the future," according to Mr. ^lilliken. Therefore negotiation for further releases still must be made. However, a showing of the 40 films may well pave the way for a purely commercial agreement since, according to a copyrighted article in the New York Herald Tribune, "the popular demand here (in Prague) for American pictures is credited with having forced Communist ^Minister of Information Vaclac Kopecky to accept terms." The Tribune article also said that the American companies would receive 35 per cent of the gross receipts. Mr. ]\Iilliken said he had no such information. A film agreement between the Italian government and eight American companies permitting the entry of new Atperican product for the first time in years has been reached, a spokesman for the distributors reported in New York Tuesday. The agreement, reached in negotiations between the Italian Ministry of Foreign Trade and the American Embassy in Rome, and said to have already been approved in New York, calls for American companies to exercise discretion in the number of films shipped to Italy and to leave all monies derived from exhibition in that country. Reports that each of the companies could distribute 16 films this year do not cover the number that can be imported, but only those distributed. The money that remains in Italy can be used for any film activity, including the purchase of Italian theatres, it was said. Since the companies are operating with their own sales offices in Italy, there is no necessity for the presence there of the Motion Picture Export .\ssociation. In the beginning there was a physical distributioa pool established because of lack of transportation facilities, but it is believed that this has been largely superseded. Maas Will Direct Export Program Irving Maas, assistant director of the Twentieth Century-Fox international organization, has been appointed vice-president and general manager of the Motion Picture Export Association by Eric A. Johnston, president. Captain Robert E. Vining, who organized the U. S. Naval Intelligence in Europe, has been appointed assistant to Mr. Johnston. ^Ir. Maas, who is on a three-year loan from his company, will keep in touch with the associations's representatives in each of the 13 countries where it serves as joint marketing agent for the member companies. Other officers of the association are Francis S. Harmon, vice-president ; Morris Goodman, vice-president and representative in Germany ; Gordon E. Youngman of RKO, secretar)-, and George Borthwick, treasurer. Charles Mayer, recently named representative for Japan and Korea, was to have left New York this weekend for his new post. Mr. Johnston has advised the directors of the association that he expects to give a substantial amount of his time to international affairs, especially in relation to policy questions. The association is currently negotiating for headquarters in New York. Buys 14 Roach Features Favorite Film Corporation, New York, has purchased 14 Hal Roach features for reissue in the United States and Canada. 24 MOTION PICTURE HERALD, JUNE 1, 1946