AMERICAN FILM AGREEMENT (Hansard, 14 October 1952)

§ LORD LUCAS OF CHILWORTH
My Lords, I beg to ask the Question which stands in my name on the Order Paper.

§ THE CHANCELLOR OF THE DUCHY OF LANCASTER (VISCOUNT SWINTON)
My Lords, 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 during September. 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. Of this amount 1,400,000 dollars is in respect of transfers which would, under the arrangements as they stood, have been permissible in the year ended September 30, 1952, and the remainder in respect of transfers which would have become permissible in the year ending September 30, 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 twelve months ending September 30, 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.

§ LORD LUCAS OF CHILWORTH
My Lords, I am grateful to the noble Viscount for his full reply which, in view of all the circumstances, I regard as being very 625 satisfactory. May I sympathise with him on his very bad cold? May I ask the noble Viscount whether Her Majesty's Government are aware that the demand made public by an organisation called the Employees' Council of the Film Industry for a reduction in the importation of American films in no way represents the vast bulk of responsible opinion in the British film industry? Further, would he not agree that any diminution in the import of American films at the present time would result in little, or no saving in dollar expenditure, and that, in view of the fact that we have to rely upon American films for 70 per cent. of showing time in British cinemas, any reduction would have a ruinous effect upon the British film industry, including the collapse of the Eady plan?

§ VISCOUNT SWINTON
My Lords, I am grateful to the noble Lord for his kind observation about my health. I trust that I am audible. Anyway, my health has been greatly improved by the stimulating air of Scarborough and I hope the noble Lord opposite has been equally stimulated at Morecambe.
I am glad that the noble Lard thinks that this was a good negotiation, and I am bound to say that I entirely agree with him. I think it reflects great credit on the distinguished civil servant who conducted the negotiations. As regards the supplementaries which the noble Lord put, I am sure that my right honourable friend the President of the Board of Trade will read with interest the observations which the noble Lord has made, and I am sure that he shares the desire that nothing in any arrangements made with the American film interests should in any way injure the British film industry. I might add this, however. The limitation of the number of American films admitted would certainly not be an effective way of reducing the earnings of United States films, since far and away the greatest revenue which United States films make is not out of what I may call the "rough and tumble"—if that is a good description, and I think it is—of the hulk of American films but is made from a few absolutely first-class feature films which everyone would go to see and which would certainly be imported, however low the American quota was. In any case, a mere reduction of imports might create great difficulties for cinemas 626 in this country, and, indeed, what is even more important, for the cinema-going public ill this country, without giving us any countervailing advantage in the balance of payments.
So far as we can see, the Government have not as yet been able to devise any more effective way, other than on the lines of the present agreement, of limiting the dollar expenditure on films. Therefore, I think we are at one with the late Government, which twice negotiated an agreement on the same lines. I am much obliged to the noble Lord for having raised these points, which I have tried to answer to the best of my ability.