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will be prolonged for another period of one year, until October first, 1931, if an arrangement is not reached between the contracting parties before May first, 1930, the contracting parties will draw up, in the most friendly and amiable spirit, and notably on the French side the French Motion Picture Chamber of Commerce and the Cinema Control Commission will recommend to their Government a regulation based on a method of protection different from the present 13 principle, which, while safeguarding the general interests of the world cinema in France, will assure the necessary protection to the French motion picture industry.
As soon as the Cinema Control Commission and the competent Ministry will have approved what precedes, the commercial relations between the French and American motion picture industries will be resumed as in the past.
The agreement was approved and the distribution of American films in France was resumed.
The determination of a permanent and definite arrangement to become effective at the expiration of the temporary agreement required a careful analysis of many factors in the situation, among which might be included: (1) the status of the French industry and the opportunity for the development of the French market; (2) the effect of the development of sound pictures; (3) the relative satisfaction given by the form of legislative restriction to the various interests; and (4) the possibility of international control. It should be realized that the factors discussed do not include those questions of public welfare that are inseparably linked with the economic aspects of the problem.
An examination of the status of the French industry shows that, in comparison to the United States and in relation to other leading film countries in Europe, France was considerably behind in the matter of modern motion picture exhibition. Most of the 4,000 theaters 14 in France were privately owned and operated, few circuits or first-run thea
13 The American representative held out for a considerable time on the wording at this point. American interests desired to incorporate the phrase "different from the quota principle", a concession which the French representative refused.
14 Film Daily Year Book. 1929.