851/4061 Motion Pictures/212a: Telegram
The Acting Secretary of State to the Ambassador in France (Straus)
280. Motion picture interests state that the French Council of Ministers on July 9 approved the cinema detaxation bill, and claim that the bill will become law on July 16. They also state that this matter has been taken up with the Embassy but that you do not feel that any representations can be made except upon receipt of instructions [Page 238] from the Department. I feel that taxation of this sort, which discriminates against an American product is very objectionable. If the spread between the taxes on theaters showing French films and the theaters showing American films is not very great, the actual effect on the use of American films might not be at all extensive. However, if the principle is established, the spread could easily be increased to a point which would make the showing of American films practically impossible. Furthermore, this principle of levying lower taxes on establishments and individuals who use domestic products as against foreign products might certainly have far-reaching and serious consequences. Once American films have entered France they should be accorded national treatment, and there should be no discrimination against them by reason of the fact that they are foreign products.
Unless you find objection to taking such action, I suggest that this question be discussed fully and orally with the appropriate French authorities.