HC Deb 14 October 1952 vol 505 c3
2. Mr. Swingler

asked the President of the Board of Trade if he will make a statement on the recent negotiations with the United States of America about cinematograph films: and, in particular, on the steps he is taking to reduce dollar expenditure on film imports.

Mr. H. Strauss

The purpose of the recent negotiations was to secure a modification of the arrangements made in July, 1951, with the American film industry in order to diminish the amount which could be remitted in dollars. It has now been agreed to amend these arrangements by reducing by 5,900,000 dollars the amount which can be so remitted. I am circulating fuller particulars in the OFFICIAL REPORT.

Following are the particulars: Discussions between representatives of Her Majesty's Government and of United States film interests, about the extent to which the earnings of United States films in this country are allowed to be transferred into dollars, took place in Washington last month. As a result of these discussions, agreement was reached that the present arrangements, which were negotiated in July, 1951, should be modified so as to reduce by 5,900,000 dollars the amount which United States interests are allowed to transfer into dollars. One million four hundred thousand dollars of this amount is in respect of transfers which would, under the arrangements as they stood, have been permissible in the year ended 30th September, 1952, and the remainder in respect of transfers which would have become permissible in the year ending 30th September, 1953. These arrangements mean that slightly more than half of the total earnings of United States films in this country are allowed to be converted into dollars. The total amount allowed to be so converted during the 12 months ending 30th September, 1953, will be approximately 20,000,000 dollars, representing rather less than 2 per cent. of our dollar expenditure on imports from the United States. Under the Anglo-American Film Agreement, United States film earnings over and above the amounts allowed to be transferred may be spent only in certain specified ways, the most important of which are the production of films in the sterling area and the acquisition of overseas rights of films produced in the sterling area.