Motion Picture Herald (Jan-Feb 1948)

LIGHT ON FOREIGN HORIZON WITH DAWN OF NEW YEAR Scandinavian Market Is Stabilized; Freeze and British Tax Deals Seen The first ray of light in many a month for the American industry appeared on the foreign horizon this week with the stabilization of the important Scandinavian market. The overseas picture, which had darkened during the past year when the words "tax" and "freeze" became commonplace in trade vocabulary, was further brightened with the optimistic indication of some solution of the British tax problem and the question of currency conversion in the occupied areas. These are the latest developments abroad : 1. The Motion Picture Association announced the re-entry of American films into the Danish market following the conclusion of agreements there as well as in Sweden and Norway. Regular remittances were set for 1948. 2. The Motion Picture Export Association submitted several proposals to the Army with a view to unfreezing at least some of its accumulated funds in Germany and Japan. AMG officers foresaw an early agreement that would forestall a threatened MPEA ban on the shipment of films to the occupied areas. 3. Providing the Americans are willing to accept the $20,000,000 remittance limitation insisted on by the British, general optimism prevails on the question of an early settlement of the 75 per cent ad valorem tax problem. The Scandinavian situation was cleared during the visit there of Gerald Mayer, head of the MPA's international division, who returned to New York last week. The deaL he made were described as "the best possible under the present difficult economic conditions." All went into effect January 1. The most important is the agreement with Sweden which in normal times represented a $3,000,000 take fdr the American companies. In all cases a solution was found that avoided the imposition of a tax. The oneyear pacts were made possible because "Sweden, Norway and Denmark feel optimistic about what the New Year will bring and are encouraged over the progress of the Marshall Plan,'' Mr. Mayer reported. One-Third of Earnings Are Remittable from Sweden The Swedish settlement provides lor the remittance of one-third of American film earnings to the U. S. Of the 1947 earnings. 50 per cent are remittable. Norway is understood to have made available more than $400,000 for the importation of all films into the country. Hollywood product there and in Denmark represents about 65 per cent DENIES FRENCH REDS' TALE OF REMITTANCE "There is no truth in the assertions of French Communists that the American distributors are taking $20,000,000 a month out of France, that their product is flooding the market and that their activities are strangling French production," Gerald Mayer, head of the Motion Picture Association's international division, said in New York this week. Pointing to the American industry's self-imposed import limitation, he said MPA members had shipped less than 124 pictures to France during the year. Some 80 additional pictures had been shipped to France by the independents, he said. Referring to a Communist inspired demonstration against American films in Paris last week, Mr. Mayer said the French Communists "would like to annul the Blum-Byrnes pact and would also like to stop the importation of all U. S. pictures". of all pictures shown. The Danish settlement reopens the way for U. S. pictures into the country. Last October MPA members imposed a ban on shipments to Denmark in line with their refusal to accede to a Danish demand to sell their product outright. Now the Americans are back on a rental basis, but will have to share some $800,000 with producers from other countries. Submit Plan to Free Reich, Jap Money The Motion Picture Export Association has submitted to the Army at least two concrete proposals aimed at finding an equitable solution to the problem of blocked funds in Germany and Japan, an MPEA spokesman said in New York this • week. As this was made known, Nils C. Nilson, the AMG film officer in the Reich, said Hollywood producers would receive an opportunity to recover their net export costs by "a limited use of German services." He spoke in reply to a threat, voiced recently by Irving Maas, vice-president and general manager of MPEA, that, unless somethingwas done to permit the Americans to recoup at least some of their frozen funds to meet expenses, Hollywood films may be withdrawn from the occupied areas. Actually a number of 'proposals have been submitted by MPEA, but two are now un der serious discussion in Washington, and a high-ranking Army officer said this week that, realizing that MPEA was not bluffing, AMG wanted and expected an early settlement of these difficulties. Present Allied policy in the Reich was to get light industry on its feet, he said, and that included the German motion picture industry. The Army welcomed competition, however, he stressed, and fully appreciated the valuable re-educational tool provided by the American motion pictures. MPEA suggestions now under consideration include one proposing the use of some of the Export Association's blocked funds by other American companies — such as the airlines — and the subsequent conversion of this money into dollars payable in the U. S. Another proposal brings up the appropriation of funds by Congress. Any such move is made difficult, however, since the industry is not the only one affected by the German freeze and other industries would have to be fitted into such a plan in the light of their importance to the rebuilding and the reeducation of Germany. MPEA also is understood to have proposed the building of showcases for its product, but this proposal is ruled out as the result of a law which forbids distributors to engage also in exhibition. British Insist On $20,000,000 Top The British pot was kept boiling this week amid indications that a settlement would be forthcoming. Reports from London said the British Government was determined to base any settlement of the 75 per cent tax question on the premise that remittances to the U. S. would not exceed £5,000,000 ($20,000,000). Meanwhile Sir Stafford Cripps was said to be awaiting the presentation of a new settlement formula which he was sure the Americans would devise. It was understood in London that the only stumbling block now holding up the resumption of the flow of American films into Britain was the steadfast determination of the Motion Picture Association that the elimination of the 75 per cent tax must precede any settlement. This MPA attitude is said to be resented by the British Government, which feels the tax is a law and that it should not be asked to alter it on the insistence of a foreign non-governmental trading association. Interest in the "barter'' plan was revived with the departure of Filippo del Giudice, head of Pilgrim Pictures, for the U. S. Interviewed aboard ship, he said the purpose of his mission was to discuss a tax settlement {Continued on page 16, column 3) MOTION PICTURE HERALD, JANUARY 10, 1948 13