860F.4061 Motion Pictures/134

Memorandum of Conversation, by Mr. Leander B. Lovell of the Division of Trade Agreements

Participants: Mr. Vladimir Hurban, Minister of Czechoslovakia,
Mr. Hawkins,12
Mr. Fowler,13
Mr. Lovell.

Mr. Hurban had been asked by Mr. Hawkins to come in to discuss the proposed film agreement. Mr. Hawkins reviewed for the Minister the progress of the motion picture negotiations in Prague particularly as they related to the Czechoslovak 20,000 crown per film registration fee. It was indicated that the initialed draft of the proposed agreement appeared to be quite satisfactory except for the question of this fee. Our original request had been for complete abolition of the fee, and when the Czechoslovak Government had indicated that this would be impossible we had asked that it be reduced to 10,000 crowns. Finally, in an effort to reach a speedy and satisfactory conclusion the American negotiators offered to compromise at 15,000 crowns. A tentative compromise was reached, but not at the latter figure. The Czechoslovak Government had taken the position that it could go no lower than 17,500 crowns.

Mr. Hawkins pointed out that the question of the registration fee was one of the most important aspects of the film negotiations as far as our industry was concerned and that the difference between a 17,500 crown fee and a 15,000 crown fee, while not great, represented the difference between a nominal reduction and one of some value to the industry. He explained that the reason for asking the Minister to come in was to see if he would not be willing to express to his Government the importance to our Government of obtaining a worthwhile reduction in the fee.

Mr. Hurban said that he had no objection to telegraphing his Government to express the American Government’s position on the matter. However, he had never quite been able to understand the importance attached by the American industry to this fee. Certainly the fee [Page 235] alone did not keep out any American films. Actually this was a comparatively painless method of providing his Government with revenue and seriously reducing or abolishing the fee would result in his Government’s having to find a substitute revenue measure. He conceded that there was a real difference between a reduction from 20,000 to 17,500 crowns and one from 20,000 to 15,000 crowns and repeated that he was quite willing to communicate with his Government on the matter.

  1. Harry C. Hawkins, Chief of the Division of Trade Agreements.
  2. William A. Fowler, Assistant Chief of the Division of Trade Agreements.