893.4061 Motion Pictures/263
The Ambassador in China (Johnson) to the Secretary of State
[Received September 5.]
Sir: I have the honor to refer to the Embassy’s despatch No. 2036 of May 4, 1939,94 reporting the facts which appeared to indicate the formation of a motion picture monopoly in North China, somewhat similar in operation and scope to that now functioning in “Manchukuo”.
It has been ascertained that a motion picture production company, the North China Motion Picture Company, is definitely to be established in Peiping, in which the “Provisional Government” and the Manchurian Motion Picture Company will be equal investors, each contributing FRB $250,000 to the enterprise. Recent articles in the vernacular press mentioned the establishment as being scheduled for early in August but it has been learned that, due to delay in the construction of the studio, to be located in the western suburbs, the formal inauguration of the company will take place at the end of August.
[Page 441]The vernacular press states further that the “Provisional Government” is presently formulating laws and regulations governing not only the motion picture industry but also laws and regulations governing the exhibition of motion pictures in North China. Undoubtedly, this presages the establishment of a system of control which may well be monopolistic in character.
In connection with the formation of the North China company, it is of interest to note the establishment in Shanghai in June of the China Motion Picture Company, in which the “Reformed Government”, a Japanese group and the Manchurian Motion Picture Company were investors, the “Government” contributing Lc $500,000, and the Japanese group and the Manchurian Company each contributing Lc $250,000. The vernacular press, in reporting the Central China project, stated that it was for the purpose of promoting cultural relations between Japan, “Manchukuo” and China through the medium of select films.
The establishment of a motion picture industry, which cannot but be under Japanese aegis, marks a further step in the Japanese penetration of China, and one which may well adversely affect the market for foreign films, chiefly American, especially if laws and regulations are enacted as to censorship and fees which make competition inordinately difficult with the Japanese-inspired product.
Respectfully yours,
Counselor of Embassy
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