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Foreign Problems <^> <^ <^ <^> <^> <^> 405
under which, commencing October 1, 1929, permits were to be cut from a seven-to-one to a three-to-one basis. Additional importation required a so-called permit. The story of the development of the French situation will serve to illustrate the rather complicated character of the whole foreign problem.
It was the opinion of Major F. L. Herron, manager of the foreign department of the Motion Picture Producers and Distributors of America, Incorporated, and spokesman for the foreign departments of the individual film companies, that American companies could not afford to maintain organizations in France under the conditions imposed by the recommended decree.
American companies announced their intention to contract for no new business upon the expiration of existing contracts; trade showings were canceled pending the outcome of the proposed legislation. A threat to retire from the market was considered inadvisable because of the adverse sentiment that would result from taki'ng action on a partially developed situation.
With American companies planning to suspend activities in France, the State Department of the United States was prevailed upon to make representations to the governments which had adopted, or which contemplated adopting, restrictive film regulations. These were the governments of France, Germany, Czechslovakia, Austria, Hungary, Italy, and Spain. No note was sent to Great Britain. Although Great Britain had set up a quota law which was unfavorable to American industry, it was already in operation and was designed to operate for a number of years. The notes pointed out the importance which the United States Government attached to the matter. In previous negotiations on import restrictions, the State Department had adopted the policy of leaving to the industry the problem of effecting more favorable terms in the exportation of its products. American embassies and legations in the countries to which representatives were sent were instructed to call upon the