893.4061 Motion Pictures/119

The Counselor of Legation in China (Peck) to the Secretary of State

Sir: I have the honor in the present despatch to conclude the account of the negotiations by the Metro-Goldwyn-Mayer Studios to obtain permission to take motion pictures in China for use in connection with a film production of the novel “The Good Earth”, a beginning of which account was given in my despatch to the Department of February 26, 1934.45

The discussions between the representatives of the Studios and the representatives of the appropriate Department of the Chinese Government, or rather, of the Kuomintang,46 continued for a month longer until on March 26 the M–G–M representatives addressed two letters to the “Commission on the Direction of the Motion Picture Industry” agreeing to the much disputed “principles” and reserving the right of the Studios to withdraw from the project of taking motion pictures in China “if the difficulties encountered in taking the films or in working with the Commission show that the undertaking is impracticable or too expensive …47 the sole condition being that all motion picture films taken by the party in China, for use in ‘The Good Earth’ shall be destroyed”.

In these discussions it seemed unavoidable that I continue my unofficial mediation, principally because, on the Chinese side, the negotiations remained in the hands of Dr. Chia-luen Lo, Chancellor of the National Central University. Dr. Lo insisted that he, also, was interesting himself only as a matter of good will and unofficially, and my withdrawal would probably have caused his.

It would uselessly encumber the files of the Department to submit a full account of all the discussions and copies of all memoranda of conversations. Full records have, however, been kept in this office.

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As illustrative of the nature of the conversations which proceeded during the second month of the negotiations, there is submitted a “memoranda of conversations”, dated March 3, 1934,48 in which are recorded an unsolicited expression of interest by Vice Minister for Foreign Affairs Tang Yu-jen in the taking of these motion pictures and his offer to intervene on behalf of the Studios. It will be noted, also, that at this juncture Dr. Chia-luen Lo expressed extreme discouragement and intimated that if the attempt then made to reconcile the views of the Studios and the Chinese authorities should fail, he probably would cease his efforts in that direction.

As of interest in showing that I warned the M–G–M representatives that the success of their venture would depend less on the exact nature of the written agreement between the Studios and the Chinese authorities than on the spirit in which the enterprise was carried on, I enclose a memorandum of conversation dated March 5.48 There is enclosed, also, a memorandum of conversation dated March 9.48 On page 2 of this memorandum there is a report of an explanation given by me to the M–G–M representatives of why the Chinese authorities were so exacting in the arrangements for the filming of “The Good Earth”. Briefly, it was because previous requests for permission to film this work had been refused, owing to the unpopularity of the novel among the so-called “intelligentsia”. On page 4 it will be noted that I informed the M–G–M representatives that I felt that I had done unofficially everything that I could do to bring about an agreement between Mr. Hill49 and the Chinese authorities. The discussions promised to drag along indefinitely and I believe this warning served to bring them to a close, since the M–G–M representatives undoubtedly regarded with apprehension their being left to continue the discussions without informal assistance from the Legation’s representative in Nanking.

There is enclosed a memorandum of a conversation, dated March 15,48 held by me with Dr. Lo and Mr. Chen Li-fu, Chairman of the Organization Department of the National Party Headquarters, who appeared to have the final decision in these negotiations. This conversation was important in that it resulted in consent by Mr. Chen Li-fu that the Studios reserve their right to withdraw from the enterprise in China if it were found impracticable. The Studios were very apprehensive that they might fail in their desire to get suitable motion picture films in China, but might, nevertheless, be held to their promise to permit the supervision of the making of the picture in the [Page 622] United States by a representative of the Chinese authorities. A letter agreed to in this conversation is understood to give the Studios a method of obtaining release from this obligation.

As final exhibits there are enclosed52 copies of the two letters addressed by the representatives of the Studios to the Chinese authorities on March 26, referred to in the second paragraph of this despatch, and of the notarial authentication of the signatures as attached by Vice Consul Harold E. Montamat at the request of the signers; copies of two letters, dated March 28, addressed to the representatives of the Metro-Goldwyn-Mayer Studios by the President of the Central Publicity Department of the Kuomintang, acknowledging the receipt of the two letters just described, which acknowledgments were sent both in English and Chinese; and a memorandum of conversations, dated March 28, reporting an assurance given by Dr. Lo that steps had been taken to arrange for the actual taking of motion picture films and for the appointment of Mr. Theodore Tu as representative of the Chinese authorities to work with the Studios; it may be stated that the representatives of the Studios had expressed their willingness to have Mr. Tu act in that capacity.

Exceptionally complete records have been kept of all conversations and informal written communications connected with the application of the Metro-Goldwyn-Mayer Studios for permission to take motion pictures in China, firstly, because the whole project is an innovation and will constitute a precedent and, secondly, because of the possibility that one party may accuse the other of failure to live up to assurances given during the discussions and evidence bearing on such a contention would, in that case, be valuable.

Very respectfully yours,

Willys R. Peck
  1. Not printed.
  2. Nationalist Party.
  3. Omission indicated in the original.
  4. Not printed.
  5. Not printed.
  6. Not printed.
  7. George W. Hill, M–G–M director.
  8. Not printed.
  9. None printed.