HC Deb 22 February 1944 vol 397 cc627-30
12. Mr. Glenvil Hall

asked the President of the Board of Trade whether, following on the undertaking given to him by Mr. Rank not to acquire additional cinemas or studios without his prior consent, he has received similar undertakings from any other important film enterprises.

Mr. Dalton

Yes, Sir. I am glad to say that the chief shareholders of the Associated British Picture Corporation have been good enough to give me an undertaking limiting the number of cinemas which the Corporation may acquire without the prior consent of the President of the Board of Trade. I am circulating in the OFFICIAL REPORT the exchange of letters in which this undertaking is confirmed. I should like to thank those concerned for the public spirited manner in which they have responded to the Government's wishes in this matter.

Mr. Bellenģer

Does my right hon. Friend consider that this is the most appropriate way of dealing with what must be something very much like a monopoly in this trade?

Mr. Dalton

I think it is an exceedingly practical way. There is an inquiry going on at the moment by a sub-committee of the Films Council, at my request, into the whole matter. Meanwhile, it is a matter for congratulation that those concerned have agreed to give me the undertaking for which I have asked.

Sir Alfred Beit

Can the right hon. Gentleman assure me that this self-denying ordinance is not making it easier for foreign interests to acquire films in this country?

Mr. Dalton

It is not making it easier for foreign interests. There is in the A.B.P.C., to which I have referred, a certain foreign holding, and, therefore, I think that my hon. Friend should be all the more pleased that I have this undertaking.

Following are the letters referred to:

Board of Trade,

Millbank, S.W.1.

18th February, 1944.

Dear Mrs. Maxwell,

In June last, in response to my suggestion that it would be undesirable and contrary to the public interest that anything in the nature of a monopoly should be created in the film industry, Sir Philip Warter was good enough to give me an undertaking on behalf of yourself and the trustees of your Settlement that none of the shares in the Associated British Pictures Corporation Limited held by yourself or your trustees would be disposed of without prior consultation with the President of the Board of Trade. Messrs. Warner Bros. Pictures Limited, the other chief shareholders in the Corporation, gave a similar undertaking.

At the same time, Mr. Rank also gave me an undertaking that neither he nor the Companies which he controls would take any steps to acquire control directly or indirectly of additional cinemas or their booking arrangements without the prior consent of the President of the Board of Trade. It was agreed that certain negotiations could, however, be completed on the basis that the total number of cinemas operated by the Odeon and Gaumont British companies would be something less than 607.

During the discussions which have recently taken place with Sir Philip Warter on your behalf and with Dr. Fletcher on behalf of Warner Bros., I explained that, for similar reasons of public interest, it would not be desirable, having regard to the undertaking given by Mr. Rank, that the opportunities for acquisition of cinemas by the Corporation should be unlimited. I was glad to learn that you fully appreciated this.

Both you (on behalf of yourself and the trustees of your Settlement) and Messrs. Warner Bros have, at my suggestion, also been good enough to say that as shareholders owning a controlling interest in the Corporation you would jointly undertake that neither the Corporation nor the Companies associated with it, will, without the prior consent of the President of the Board of Trade, such consent not to be unreasonably withheld, take any steps to acquire control, directly or indirectly, of cinemas or their booking arrangements, if as a result:

  1. (1) the total number of cinemas in the United Kingdom owned and controlled by the Corporation or its associated Companies were thereby to exceed the total number of cinemas operated in the United Kingdom by the companies controlled by Mr. Rank;
  2. (2) the total number of the Corporation's "A" circuit cinemas either in the London area or in the country as a whole were thereby to exceed a figure calculated on a basis agreed with the Board of Trade, as corresponding to the effective booking strength of the largest circuit under Mr. Rank's-control, either in the London area or in the country as a whole respectively.
I should be very glad if you would kindly confirm this undertaking which will, I am sure, allay any anxieties that may be felt.

I shall, of course, be most happy at any time to discuss with you or your representatives any problems arising out of this undertaking.

As you know, the Government attach much importance to the activities of the Associated British Picture Corporation Limited which your late husband founded and directed for so many years, and I ant confident that the Corporation will play a most important part in the development of a vigorous and successful film industry in this country.

Yours sincerely,

(Sgd.) HUGH DALTON.

Mrs. J. Maxwell,

Claridge's Hotel,

Brook Street, W.1.

Leigh Hill House,

Cobham, Surrey.

19th February, 1944.

Dear Dr. Dalton,

I thank you for your letter of the 18th instant. Sir Philip Warter has informed me fully of the discussions which he and Dr. Fletcher have recently had with you and I am happy to confirm on behalf of myself and the Trustees of my Settlement the undertaking as set out in your letter.

My husband took great pride in building up the Associated British Picture Corporation and I am very sensible of the opinion expressed in your letter as to the part which the Corporation can continue to play in the film industry in this country.

Yours sincerely,

(Sgd.) CATHERINE S. MAXWELL.

The Right Hon. Hugh Dalton, M.P.,

Board of Trade,

Millbank, S.W.1.

Board of Trade,

Millbank, S.W.1.

18th February, 1944.

Dear Mr. Milder,

I enclose a copy of a letter which I have written to Mrs. Maxwell setting out the terms of the undertaking which I understand Mrs. Maxwell and Warner Bros. Pictures Ltd. as the chief shareholders in Associated British Picture Corporation Ltd. are, at my suggestion, willing to give with regard to the future acquisition of cinemas by the Corporation.

In asking you to be good enough on behalf of Warner Bros. Pictures Ltd. to confirm the undertaking, I should like to thank you for your ready co-operation in responding to the request which in the public interest I felt it desirable to make.

Yours sincerely,

(Sgd.) HUGH DALTON.

Max Milder, Esq.,

Warner Bros. Pictures Ltd.,

185, Wardour Street, W.1.

Warner Bros. Pictures Ltd.,

Warner House,

Wardour Street,

London, W.1.

21st February, 1944.

The Right Hon. Hugh Dalton, M.P.,

Board of Trade,

Millbank, S.W.1.

Dear Mr. Dalton,

I thank you for your letter of 18th February.

As indicated in the recent discussions, we are in entire agreement with Mrs. Maxwell, and as shareholders owning with her the controlling interest in the Associated British Picture Corporation, we are happy to confirm the undertaking as set out in your letter.

Sincerely yours,

For WARNER BROS. PICTURES LTD.,

Max Milder,

Managing Director.