864.4061 Motion Pictures/70: Telegram

The Minister in Hungary ( Montgomery ) to the Secretary of State

26. Referring to the Department’s telegram No. 23, February 9, 6 p.m., existing law limits Jewish members of Film Chamber to 20 percent, but it is understood proposed legislation reduces percentage to 6. Jewish applications are not being acted on until limitations in new bill are known. Only two Jewish managers, both of local film producing companies, so far admitted to Chamber. Managers who have not been able to establish qualifications for admission may continue activities until June 30 provided petition and documents for establishing admissibility submitted February 28.

Hungarian manager of Metro was refused admission but company can continue business by appointing acceptable manager. Christian manager Paramount already admitted. Christian manager Universal not yet acted on but is certain of admission. German manager Warner Brothers under orders to leave Hungary and no manager appointed. Jewish manager Fox eligible as war veteran under first Jew law but probably not under proposed law and application not yet acted on but company not concerned as yet doing business.

No foreigner is permitted membership in Chamber and Hungary claims right to refuse any Hungarian national membership. Since there appears to be no discrimination against American interests should protest be made and if so on what grounds?