851.4061 Motion Pictures/63: Telegram

The Secretary of State to the Chargé in France (Armour)

[Paraphrase]

145. Reports in the press have it that French Government is considering solution of film controversy whereby a relatively high tax would be laid on all foreign films entering France and the proceeds thereof would be given to French film industry. Under section 303 of the Tariff Act of 1922,31 it is apparently mandatory on the Secretary of the Treasury to impose countervailing duties in case of exportation to the United States of any article enjoying directly or indirectly benefit of a bounty or grant upon production in the country of origin.

In view of Commercial Attaché’s participation in the hearings before the French authorities, the Embassy should guard against possible imputation of responsibility in the event that France, without full knowledge of the possible consequences, should adopt any measure which might require imposition of additional American duties on French films exported to this country.

Stimson
  1. 42 Stat. 858, 935.