851.4061 Motion Pictures/229
The Ambassador in France (Straus) to the Secretary of State
[Received October 25.]
Sir: With reference to the Embassy’s despatch No. 2222 of October 8, 1935, I have the honor to report that trade circles in the last day or two gained the impression that a movement was on foot to push through the decree-law, which would govern the status of the cinema industry in France, with very little further consideration and perhaps within the scope of a week’s time. In consequence it seemed advisable for the Embassy to make immediate representations in the matter. To this end I requested a member of the staff to call again at the Ministry for Foreign Affairs, in this instance discussing the subject directly with M. de la Baume, Chief of the Commercial Section. Furthermore, in view of the exigencies of the situation, it was thought advisable that the representations made should not be confined to the precise authority afforded in the Department’s instruction of October 4, 6 p.m., directing only formal inquiries and the presentation of certain observations, but that they should, within the implied discretion afforded the Embassy, partake of the nature of a precautionary specific protest. That such was made last evening by the Embassy representative within the limitations of the care which must be employed in approaching foreign legislation may be of assistance to the Department in answering the pressure which is undoubtedly being brought upon it by American moving-picture interests.
The Embassy punctiliously pointed out that it does not fail to realize that the proposed decree-law regarding the cinema is ostensibly [Page 243] one of domestic concern. It indicated, however, that certain of the provisions of the decree-law would in their effect reach beyond the interior realm and directly strike at American trade. With regard to such provisions we feel that we have a right to be consulted. In this connection there were specifically cited the clauses of the contemplated decree which would set up an agency for the handling of certain funds of the moving-picture industry in France inclusive of rentals of American films shown in this country and the stipulation requiring each individual theatre to show a given percentage of French films.
The Embassy emphasized that such provisions would not only injure the American film industry in France but that—and this is a very important consideration—they would definitely upset the maintenance of the status quo which is so essential to the present commercial treaty negotiations. After developing at some further length the thesis outlined above, the Embassy asked that its protest be made known to the authorities primarily responsible for the drafting of the decree-law and that if it were decided to promulgate the decree the Ministry for Foreign Affairs exercise its good offices towards insuring in so far as possible that those provisions which have an exterior repercussion be either eliminated or so modified as not to prejudice the present commercial treaty negotiations.
The Ministry for Foreign Affairs replied that it was fully cognizant of the American point of view and objections. It added that the decree-law is the subject of violent differences of opinion in French governmental circles and that, as is known, it is also the object of very material opposition in a number of trade elements. The situation is therefore so chaotic that, as the Ministry elucidated, it seems almost certain that no regulations of a general nature can safely be promulgated without long and serious consideration. M. de la Baume consequently expressed the personal opinion that it would probably be a number of months before new film regulations can be issued. He said that of course he could not guarantee that the decree-law will not be slipped through precipitately, but that he regarded such an incident as highly improbable. Likewise, although he naturally could not at this juncture give any assurances that the provisions objected to by American film interests would be modified, he emphatically asserted that all Ministries concerned would have an opportunity to scrutinize the stipulations of the decree before action was taken. In fact, the decree is to be examined today at a meeting of the Council of Ministers and it may then be decided what course is to be followed with regard to future consideration of the document—that is, whether an attempt will be made to promulgate in the near future some form [Page 244] of decree based in general principle upon the present text or whether more leisurely and searching study will be given the problem. The likelihood, the Embassy was given to understand, is that the authority to issue a decree-law on the subject, which expires on October 31, will not be availed of and that, instead, appropriate legislation will be forthcoming at some considerably later date.
From a member of the staff of the Commercial Section it was learned that there is apparently a hope of deferring the coming into effect of any regulations in the matter until January 1, 1937, when, presumably, such Franco-American commercial treaty as may be negotiated will have been in vigor for its initial year. The same informant voiced the possibility that the French Government, once it shall be acquainted with the probable course of events as concerns the contemplated decree-law, will be in a position to afford the United States as a final treaty concession assurance that the present status quo of American films in France will be respected.
Respectfully yours,