851.4061 Motion Pictures/78: Telegram
The Chargé in France (Armour) to the Secretary of State
[Received 2:55 p.m.]
242. Department’s No. 177, May 28, 6 p.m. Pursuant to your telegrams Nos. 145, May 9, 5 p.m., and 154, May 13, 7 p.m., the Commercial Attaché called on the Under Secretary for Fine Arts on May 27 to discuss question of the possible application of section 303 of Tariff Act should any plan be attempted whereby French film industry would receive financial aid from the Government. I understand that the only other person present during the discussion was the Director of Fine Arts.
The Under Secretary took this occasion to reassert his dissatisfaction with the contingent system and his intention to continue studying possibility of putting on increased customs duty in its place. François-Poncet stated, however, that, even were this principle of tariff regulations approved, to apply it would require new legislation and, in consequence, would involve further delay, whereas some immediate action is clearly necessary. He explained situation by saying that in view of insistence on the part of the Chambre Syndicale32 not only upon maintenance of the contingent system but of [upon?] its application in most severe form, and from fact that the Chambre Syndicale is largely under influence of Jean Sapène,33 who, as Department is aware, possesses considerable power both politically and with French press, the Government would find it extremely difficult to reject flatly the proposals of the Chambre.
The Under Secretary expressed opinion that the best hope, therefore, of a solution acceptable to American interests lay in gaining time through maintenance of the status quo for another year during which time the French Government will guarantee a sincere attempt to find a solution that is mutually satisfactory.
Parenthetically, I may say that the clear implication seems to be that only by there being more time given is there any chance of the shelving of the contingent principle.
The Under Secretary then asked whether the American film companies would resume business in France if the status quo were prolonged. MacLean made it clear in reply that only the complete abolition of the objectionable contingent system would be acceptable; but, as his own informal opinion, he said that if maintenance of the status quo was the only possible temporary method of keeping way [Page 1015] open for eventual adoption of another system, he felt that the American film interests might be willing to resume their sales.
There would seem to be little doubt that the Under Secretary freely understood MacLean’s reply as he gave it, and that the version telegraphed to Hays, presumably by Harold Smith, represents slightly exaggerated interpretation of what actually took place.