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under reference, which crossed it, furnishes, I believe, a complete reply. For my information, I should appreciate it if the Department would clip and send to me the press despatches from Paris referred to in its instruction.

I have [etc.]

851.6363 Import Law/12: Telegram

MYRON T. HERRICK

The Ambassador in France (Herrick) to the Secretary of State

[Paraphrase]

48

PARIS, March 3, 1928—11 a. m. [Received March 3-9: 17 a. m.] 57. Embassy's telegram No. 48, February 17, 8 p. m., and despatch 8343 of February 18. The following favorable change has taken place since then:

Prime Minister Poincaré and Foreign Minister Briand, appearing yesterday before the petroleum committee of the French Chamber of Deputies, opposed the objectionable amendments to the petroleum importation bill which had been adopted by the said committee.

M. Briand, especially, took a very strong position which was fully in accord with his previous assurances to me.

American and British oil companies may, as a result, now be heard on Monday by the committee. The amendments having been withdrawn by their committee authors, the bill in its original form will come before the Chamber of Deputies on Tuesday.

HERRICK

851.6363 Import Law/13: Telegram

The Ambassador in France (Herrick) to the Secretary of State

PARIS, March 9, 1928-1 p. m.
[Received 3:20 p. m.]

60. My telegram No. 57, March 3, 11 a.m. Petroleum importation bill was passed by the Chamber on the night of March 7. Bill now provides that import licenses are to be based on maximum figures of annual imports during last five years and proposed amendment discriminating in favor of French companies with respect to surplus license allotments is eliminated (see my despatch 8343 of February 18th, 1928). On the other hand, an amendment providing for government participation in the profits was adopted by a majority of one. This amendment does not involve discrimination. Moreover it seems

"Not printed.

likely to encounter opposition in the Senate and was probably proposed for this very reason by the Socialists who would like to see bill in its present form fail so as to give them a chance of passing a more monopolistic measure eventually. [Paraphrase.] During discussion, as reported in the official journal of March 8, M. Bokanowski, Minister of Commerce and Industry, made statements which have, however, caused a further unexpected and more alarming development. He declared, with regard to increased consumption, that the French Government had reserved the right to deliver licenses for surplus importation to whatever parties it might wish and to favor French refineries. Stating the position of the Government thus would have the effect of permitting, whenever the governmental licensing committee created by the bill might see fit, the sort of discrimination against non-French oil interests that had already been expressly cut out of the bill. See my despatch No. 8343 of February 18 for the viewpoint of M. Briand, with which these statements now are entirely at variance. Because of this fact and because of the urgency of the matter, since the bill may go at any moment to the Senate, I conferred with a representative of American oil interests and yesterday made it clear in a communication to Prime Minister Poincaré (Minister Briand being away at Geneva) that I was acting without instructions, unofficially, and entirely on my own initiative by pointing out the above-stated fact and by expressing my personal hope that any discrimination against American interests might be avoided by the taking of due steps. [End paraphrase.] HERRICK

851.6363 Import Law/14: Telegram

The Secretary of State to the Ambassador in France (Herrick)

WASHINGTON, March 12, 1928-6 p. m. 70. Your 60, March 9, 1 p. m. The Department approves your informal representations and desires that you continue to follow developments closely.

851.6363 Import Law/17: Telegram

KELLOGG

The Ambassador in France (Herrick) to the Secretary of State

PARIS, March 16, 1928-noon. [Received March 16-11:25 a.m.] Senate on March 14 passed oil imamendment of government participation in profits and also amending article two by an additional clause

70. My 60, March 9, 1 p. m. porter bill eliminating Chamber

providing that the Council of State must likewise be consulted with respect to the special authorization for licenses. [Paraphrase.] As constituting presumably an effective check upon any arbitrary action by the commission created by the bill, this clause is most welcome. [End paraphrase.]

Chamber yesterday finally passed bill accepting Senate reservations."9

HERRICK

EFFORTS BY THE DEPARTMENT OF STATE TO PROTECT AMERICAN MOTION PICTURE INTERESTS FROM RESTRICTIONS IMPOSED BY FRENCH FILM REGULATIONS 50

851.4061/76a: Telegram

The Acting Secretary of State to the Ambassador in France (Herrick) WASHINGTON, March 15, 1928-noon. 74. Department understands that Senate 1 will today pass new film law. Article 7 of this law is said to read as follows:

"Producers who can prove the sale of one French film of the first category to a foreign country well-known as a producer of films and where imports from France are at present made difficult, will receive from the Commission authorization to exploit in France, colonies and protectorates, seven foreign films for each French film sold among these various countries. French films of the second category will be entitled to fifty per cent of the advantages accorded to French films of the first category."

The Department further understands, however, that American companies will be permitted to distribute in France only four American films for one French film sold in the United States and that to secure distribution of seven American films this French film must be shown also in Germany and in England. Hays 52 informs Department that this will compel some of the largest American companies to withdraw altogether from France with consequent loss of heavy investments.

The proposed measure also is understood to limit to 500 the number of foreign films that may be brought into France from March 1, 1928 to September 30, 1929. The fixation of such a quota is inconsistent with the spirit at least of the agreement for the abolition of import and export prohibitions and restrictions signed recently at Geneva. While

49

For text of law as promulgated Mar. 30, see Journal Officiel: Lois et décrets, Mar. 31, 1928, p. 3675.

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See also documents regarding question of French film restrictions raised in connection with Second International Conference for the Abolition of Import and Export Prohibitions and Restrictions, Geneva, July 3-19, 1928, vol. 1, pp. 306398, passim.

82

French Senate.

Will H. Hays, president of the Motion Picture Producers and Distributors of America, Inc.

the French Government, in a letter addressed to the Secretary-General of the League of Nations on January 27th last, stated that France reserved the right to adopt certain restrictive measures, that letter stated that such measures "will apply equally to French and foreign films." 5 It is entirely obvious that the measure understood to be contemplated does not so apply.

Please discuss this matter fully with Lowry, who is understood to be in Paris. If you consider it advisable you may talk over the situation informally with the Foreign Office, pointing out the serious injury to American motion picture companies who have invested in France on the understanding that they will be able to carry on their business. Also please telegraph Department whether you perceive ground for formal protest.

OLDS

851.4061/77: Telegram

The Ambassador in France (Herrick) to the Secretary of State

PARIS, March 16, 1928-6 p. m. [Received March 16-3:57 p. m.] 72. Your 74, March 15, noon. There is no film legislation of the kind referred to before either the Chamber or the Senate. Any film regulations of this nature would as [at] most only require a decree. As Department will recall, the Administrative Régime of Film Exploitation and Control was only instituted by decree, see despatch No. 8356, February 20.5

The article quoted in Department's instruction is article 7 of what purports to be "Regulations Established by the Film Control Commissioner." It is still possible that they represent the wishes of the French film interests rather than regulations whose promulgation has been definitely decided upon by the government.

On March 10th the commercial attaché took Lowry to see Herriot 56 and the latter stated specifically that although strong pressure had been brought to bear upon him he had opposed the adoption of regulations providing for a film quota.

Under these circumstances I feel clear that no formal protest is justifiable. It would not seem advisable to assume that Herriot is going to take action completely inconsistent with his said statement and I consequently believe that informal action is likewise inopportune at this juncture.

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Vol. I, p. 368.

HERRICK

Representative of the Motion Picture Producers and Distributors of America,

65 Not printed.

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Edouard Herriot, French Minister of Public Instruction and the Fine Arts.

851.4061/81: Telegram

The Ambassador in France (Herrick) to the Secretary of State

[Paraphrase]

PARIS, March 23, 1928—4 p.m.
[Received March 23-3: 55 p. m.]

80. Reference my No. 77, March 20.57 As to any action taken by the Film Commission at its meeting to put regulations into effect, no definite information is forthcoming.

Since the text of these regulations, in incomplete form as mentioned in my telegram 72 of March 16 (namely, without indication of ap proval by Herriot nor otherwise given binding effect), has appeared in Matin and in trade papers, however, our commercial attaché has seen the Director-General of the Fine Arts, who is ex officio chairman of the Film Commission, about the matter.

In a despatch leaving today," additional details are given in order to facilitate the Department in instructing me further. If any other developments take place before the receipt of this information, and if informal action seems advisable, I shall proceed according to authority granted in Department's telegram 74, of March 15, noon, and shall cable my report.

HERRICK

851.4061/81: Telegram

The Acting Secretary of State to the Ambassador in France (Herrick)

WASHINGTON, March 24, 1928—5 p. m. 89. Your 80, March 23, 4 p. m. Will H. Hays is sailing [on] Leviathan today in order to take up directly questions raised by film regulations now under consideration. On his arrival you will, of course, render all appropriate assistance. Meanwhile, it is suggested that, if you see no objection, you inform Herriot that he is coming and ask that he be heard before the adoption of any regulations that may affect American film interests.

57 Not printed.

58

'Despatch No. 8460, Mar. 22, 1928; not printed.

OLDS

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