Boxoffice-March.06.1948

HOPES HIGH, THEN BOG DOWN
IN BRITISH TAX CONVERSATIONS
U.S. Is Insistent Upon
Getting a Substantial
Return of Receipts
LONDON—Negotiations for a settlement of
the Anglo-American film impasse brought on
by the 75 per cent import tax got under way
here last Monday with a flourish and then
began to show signs of bogging down by
Thursday.
At that point, the Americans were still insisting
they were not going to pay the tax,
that they had to have a substantial percentage
of their receipts for transfer to this country,
and that whatever funds were to be
blocked in England would be eligible for investment
there or for purchase of exportable
goods.
BRITISH FOR SOME COMPROMISE
British exhibitors and leading distributors
were for some form of compromise to prevent
theatres from going into bankruptcy when
they run out of film, but there were rumors
of a division of sentiment in government
circles, with Sir Stafford Cripps insisting on
no compromise.
With the first session was a top level conference
at the Board of Trade with Eric Johnston,
MPAA head: Allen Dulles, MPAA counsel;
Lewis O. Douglas, American ambassador;
Joyce O'Hara, executive assistant to Johnston;
F. W. Allport of the MPAA, and James
A. Mulvey, president of Samuel Goldwyn
Productions, sitting on the U.S. side of the
table and Ernest Bevin. British foreign mininster:
Sir Stafford Cripps, chancellor of the
exchequer, and Harold Wilson, president of
the Board of Trade, representing the British
government.
Mulvey was present as a representative of
the Society of Independent Motion Picture
Producers.
The following day the negotiations were
taken over by committees, with Johnston,
Dulles and Mulvey and Allport doing most
of the talking for the Americans and Wilson
sitting in for the British.
LUNCH WITH U.S. OFFICIALS
Johnston took time out to meet the heads
of American companies in
Great Britain and
to have lunch with J. Arthur Rank, Nate J.
Blumberg, Joseph H. Seidelman, J. Cheever
Cowdin and Charles Prutzman of Universal-
International, who were here for discussion
of a new distribution deal with Rank.
Johnston and other members of his party
and Ambassador Douglas let it be known that
they had Friday reservations for a quick trip
back to the United States. This may have
been to create the impression they expected
a quick end to the conferences.
On the British side, window dressing appeared,
apparently to convince the public the
government was getting tough.
Tom O'Brien, MP and general secretary of
the NATKE as well as a leader in the Labor
party, publicly congratulated Foreign Secretary
Bevin and asked him to "strain every
effort" to prevent a breakdown.
Almost immediately, an unnamed spokesman,
presumably Sir Stafford Cripps, stated
Rank's 40 Features for '48
Reach Production Top
NEW YORK—Most British studios, with
the exception of those controlled by American
companies, are working at capacity, and it
is doubtful if the industry can increase production
over the 1948 level, according to
George Archibald, managing director of Independent
Producers, Ltd., Rank production
unit.
The Rank units will turn out 40 features
this year, an increase of 12 over 1947, Archibald
said. He doesn't believe this can be
stepped up any more unless more studio
space is available. Towar-d this end, Ai-chibald
sees little chance that the British government
will gi-ant construction permits to
the industry within the next few years.
Archibald arrived from England Wednesday
(3). He plans to visit U-I and Eagle
Lion exchanges and study reaction to Rank
product. He will map releasing plans on new
British, films with executives of both companies.
He will return to England on the
27th.
Archibald said the present budget of $36,-
000,000-$40,000,000 plarmed for Rank films
during 1948 is two and one-haJf times larger
than the 1946 production budget. He denied
reports that Rank was hmiting film budgets.
We do not intend to cut the quality of films,
he stated.
Archibald contends the British industi'y
cannot survive without making a number
of big productions. He also feels the British
industry cannot succeed in the American
market, if films are slanted toward American
audiences. "When tliis is done, the film seems
always to strike a false note," he declared.
Concerning a speedup in shooting schedules,
Ai-ohibald said the Gainsborough and
Denham studios in England have managed
to cut shooting time. His own group, which
films at Pinewood, has not been as successful.
All Rank units axe attempting to cut
shooting time by rehearsing casts for longer
takes, however.
emphatically that the government could not
drop the tax. This was followed by gene^pl
acceptance of a story that Bevin and Cripps,
the latter, the great exponent of austerity, had
split on the issue, because it had reached
the stage where international relations were
involved.
Mono French Deal in Work
PARIS—William Satori, Monogram continental
European representative, has arrived
here to arrange a new releasing deal
with the company distributor in France,
Interfrance Films, S.A.R.L. Before arriving
in Paris, Satori visited Brussels and Copenhagen
to set up Monogram 16mm release.
Korda Gets $1,500,000
Advance From 20th-Fox
London— Sir Alexander Korda has rereceived
an advance payment of $1,500,000
from 20th Century-Fox for the first three
pictures to be released by the American
company under their recent distribution
deal. This represents the largest lump
sum payment in dollars to be received by
a British film company.
The pictures covered by the payment
are "An Ideal Husband," "Anna Karenina"
and "Mine Own Executioner."
"Husband" is being released in the U.S.
this month by 20th-Fox. The other two
films are scheduled for release during
1948.
At present Archibald's Independent Producers,
Ltd., has three fUms in cutting
"Oliver Twist," "The Red Shoes" in Technicolor
and "Esther Waters." Three others axe
filming. These are: "Dulcimer Street," "The
Blue Lagoon" in Technicolor and a film based
on the H. G. Wells novel, "The Passionate
Friends."
These six will be released this year.
Also on the schedule at Pinewood are:
"Once a Jolly Swagman," "All Over the
Town" and "Fair Stood the Wind for Prance."
Archibald said that British producers find
they can recoup about 60 per cent of the
negative cost on big budget fUms on the domestic
market.
Concerning the U.S. ban on film sihipments,
he believes British theatres can continue
operating for six months with reissues if
there is no tax settlement.
Archibald intends to visit the Cleveland,
Buffalo, Albany, Pittsburgh, Philadelphia
and Washington exchange teiTitories before
returning to England.
U.S.-Sponsored Films Get
An Okay for Foreign Use
WASHINGTON—The House approved an
amendment Thursday paving the way for
distribution in foreign theatres of films
sponsored by the United States information
services. Tlie amendment, offered by Rep.
Karl Stefan (R. Neb.i was adopted unanimously
by the House which considered an
appropriation for the information program.
Stefan said the distribution of films abroad
had been limited to small clubs. The amendment
offers "far-reaching" distribution scope
for films. The theatres could be paid to
show U.S. films under the program, he said.
BOXOFHCE : : March 6, 1948