893.4061 Motion Pictures/347: Telegram

The Ambassador in China ( Gauss ) to the Secretary of State

2501. Regarding remittance of earnings of American motion picture companies, your 1842, December 22, 11 p.m.;1 Embassy is [Page 1033] awaiting precise detailed information from distributors before making approach to Chinese Government. Film distributors have been permitted to remit not more than 50% of their net earnings after deduction of expenses. As to remaining 50%, I question whether film companies here have given careful consideration to probability that they are subject to income and war excess profit taxes, which would affect estimates of amounts available for further remittance. I hope to have precise information from film distributors soon and will then approach Government. Action on behalf of film companies would not be embarrassing as there are no other American interests known to Embassy to be holding funds from [for?] remittance.

Gauss
  1. Not printed; this was a follow-up to the Department’s telegram No. 1604, supra.