860F.4061 Motion Pictures/126: Telegram

The Minister in Czechoslovakia (Carr) to the Secretary of State

56. From Culbertson. It was not until yesterday that we made any progress on the motion picture question. On my arrival here I found the situation even more complicated than we had thought in Washington. We prepared a list of 14 points which was presented to the Czechs. They have met us partially or wholly on 12 points [Page 232] and I feel we can probably come to an acceptable agreement within the fairly near future. The most important outstanding is the registration fee of 20,000 crowns. While they have offered no reduction in this amount they have suggested it be imposed as an import license tax and payable to the Ministry of Commerce. No doubt the money will still find its way into the hands of the domestic industry as a governmental subsidy but so long as our industry is not required to pay it into the hands of the domestic industry I feel we have made our point on the principle involved. There is really no chance of getting this fee abolished but I am in hopes we can get it reduced. Refusal of our requests has been based on political considerations which the Czechs feel are real and pressing. Some of our requests are without doubt difficult for them. [Culbertson.]

Carr