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Foreign Problems <^ <^ ^> <^> ^> <^> 417
exhibitor, on the other hand, required American product, not only to supply him with enough films to meet program needs but also, because of the popularity of American films, to satisfy public demand. The strength of the exhibitor's position was apparent in its influence toward the settlement of the dispute over 1929 restrictions.
The diverse interests of the French government and the individual activities in the industry constituted a weakness in negotiation which would be partially overcome by further vertical and horizontal integration in the industry, providing a more attractive investment for capital, the weeding out of small "mushroom" producers and distributors, and a common interest in the exploitation of native product and in the welfare of the industry. Under such conditions, less protection would be required and more power would exist to obtain the protection deemed necessary. As a result of the negotiations and the resulting agreement, the leadership of the French industry passed into the hands of the president of the Motion Picture Chamber of Commerce, a representative with a more friendly appreciation of American interests in the market than had been held by the former leader. The attitude of the contemporary Undersecretary of State for Public Instruction and Fine Arts was also considered by the American association to be friendly.
On July 1, 1931, France abolished its film contingent against such countries as did not themselves have film contingents. This is another way of saying that there are no restrictions now against the entrance of American films (barring import duties). Although this has been given much publicity as a concession, apparently France was looking entirely to her own interests and really conceded nothing at all. The picture is something like this. The contingent was established in silent film days when American films dominated the market. Since films now have to be in French dialogue to be successful in France, the position has entirely changed. American companies, including those producing in France, cannot possibly furnish more than a small fraction