DEPARTMENT OF STATE Memorandum of Conversation
Date: April 15, 1949 Subject: British Film Quota
Participants: Mr. King Mr. McKinnen - Congressman from California Mr. McDonough Mr. Acheson Mr. Webb Mr. Gay
Copies to: S, U, E, ITP, EUR, IMP, CP, London Embassy
Mr. King as Chairman of the California Congressional group stated that he and his colleagues had arranged to see the Secretary at the instruction of the group they represented. They wished to bring to his attention their concern over the British film restrictions because of the very detrimental affects being felt by the motion picture industry. They were not so concerned about the big producers who could fight their own battles but over those thousands of wage earners and technicians who were being thrown out of work as a result of the loss of foreign markets. This was becoming a serious problem for California.
The Congressmen were also concerned in the broader aspects of the British restrictions which they felt unfair and discriminatory against the U.S. industry. In this connection Mr. King observed that some of the arch opponents of the Trade Agreement program might have made capital use of the British quota limitation in fighting renewal of the Act. The Congressman also recognized that the motion picture industry was an important vehicle for dissemination of information about the American way of life. They were interested in learning what the Department had done and hoped it would make every effort to achieve relaxation of the British restrictions.
Mr. Acheson recognized the great importance of maintaining the flow of U.S. films in world trade from the cultural and informational as well as commercial points of view. He stated that the Department was sympathetic to the U.S. film industry's position on the British quota; that it, too, felt the quota to be restrictive and protective in intent. He felt the case for the quota as a dollar conserving measure was not very strong because the Film Agreement between the U.S. film industry and the British Government dealing with remittances and uses in the United Kingdom of blocked sterling and consummated just before the quota was announced met this problem to a considerable extent. The American industry had shown its good faith and willingness to recognize the British difficulties in negotiating this agreement. The Department recognized, however, that the quota, which is not absolutely rigid in that it can be revised from time to time and which does not apply to sterling countries other than the United Kingdom, is not technically in violation of the GATT. It had not felt that the quota could be challenged on legal grounds.
The Department's continuing efforts to resist the British film restrictions were described, particularly the recent discussions with officials attached to Mr. Bevin's party and the British Embassy. In these discussions the Department's concern over the mounting resentment among the American film group and the resulting political implications was emphasized as well as its view that the quota was protective in nature and inconsonant with our jointly avowed commercial policy objectives. The Department had been assured that its views would be fully reported to London and brought to Mr. Bevin's personal attention.
The Congressman appeared to be satisfied with the efforts the Department was making on behalf of the film industry and appreciative of the opportunity to discuss the matter with the Secretary.
ITP:CP:ECGay:PM