UNDERSTANDING BETWEEN THE GOVERNMENT OF THE UNITED STATES OF AMERICA AND THE PROVISIONAL GOVERNMENT OF THE FRENCH REPUBLIC WITH RESPECT TO THE EXHIBITION OF AMERICAN MOTION PICTURES IN FRANCE The Government of the United States of America and the Provisional Government of the French Republic, in the light of their broad agreement of this date on commercial policy objectives, and with special regard to changes brought about by the war, have reexamined certain problems relating to the exhibition in France of dubbed American motion picture films. As a result of these conversations, the French Government has informed the American Government that it will take the following measures which will be applied in the customs territory of France: Effective July 1, 1946, all previous provisions concerning the number of dubbed films permitted to be shown in France will be abandoned. On the same date, a "screen quota" system will be instituted, as a temporary protective measure, to assist the French motion picture industry to recover from the disorganization caused by enemy occupation of France. Under this system, motion picture exhibitors in France will be required to exhibit French films for a certain number of weeks per quarter. During the remaining weeks, French exhibitors will be allowed free choice of films, foreign or domestic. Beginning July 1, 1946, the screen quota reserved for French films will be not more than four (4) weeks per quarter. The screen quota shall continue at the level of four (4) weeks per quarter unless reduced to three (3) weeks per quarter by the operation of the following automatic formula: If, in any two-year period ending on June 30, 1948, or on June 30 of any subsequent year, feature films produced in France should obtain total playing time in French theatres equal to or greater than an average of five (5) weeks per quarter, the screen quota shall automatically be reduced to three (3) weeks per quarter effective October 1 following the expiration of such twoyear period. If, through the operation of the above formula, the screen quota should be reduced to three (3) weeks per quarter, it shall continue at that level unless terminated entirely by the operation of the following automatic formula: If, in any two-year period ending on September 30, during the whole of which period a screen quota of three (3) weeks per quarter is in effect, feature films produced in France should obtain total playing time in French theatres equal to or greater than an average of five (5) weeks per quarter, the screen quota shall be entirely abolished effective January 1 following the expiration of such two-year period. The French Government has agreed that, in the period during which the screen quota remains in force, it will impose no restrictions whatever on the importation of American films into France, and no restrictions other than the screen quota on the exhibition of American films in France, except such restrictions as are also applied to French films. If, through the operation of this plan, the screen quota should be entirely abolished, there will be, on and after the effective date of such abolition, no restrictions on the importation of American films into France, and no restrictions on the exhibition of American films in France, except such restrictions as are also applied to French films. The United States Government has noted with satisfaction that the new measures to be taken by the French Government contemplate the complete elimination of protection when the French producing industry has regained its competitive strength. If, in the opinion of either Government, this plan should, at some future time, be inappropriate to the conditions then prevailing in the French motion picture producing industry or in the French motion picture market, each Government has reserved the right to request the other to undertake negotiations looking toward its modification or termination. If, upon the expiration of six months from the date of such a request, these negotiations shall not have reached a conclusion satisfactory to both Governments, the terms of the Reciprocal Trade Agreement which is then in effect between them shall apply. DONE at Washington, in duplicate, in the English and French languages, this 28th day of May, 1946. For the Government of the United States of America: JAMES F. BYRNES For the Provisional Government of the French Republic: LÉON BLUM INTERPRETATION OF PARAGRAPH 6(1) OF THE "MEMORANDUM OF UNDERSTANDING BETWEEN THE UNITED STATES AND FRANCE" MAY 28, 1946 Paragraph 6(i) of the "Memorandum of Understanding Between the United States and France" reads as follows: "The United States Government will undertake to make available to the French Government part of the United States Government's share of captured German and Japanese surface naval vessels when such vessels become excess to United States needs and are no longer needed for any task connected with the implementation of the German and Japanese surrenders." The United States authorities are presently engaged in examining the conditions under which such vessels may be legally made available to another power. In the circumstances, it is understood by both parties to this "Memorandum" that the phrase "will make available to the French Government" in the above quoted paragraph is not to be construed as an undertaking that the vessels in question will be transferred without compensation. For the Government of the United States W. L. CLAYTON For the Provisional Government of the French Republic WASHINGTON, May 28, 1946 DECLARATION MADE IN PARIS BY THE PRESIDENT OF THE PROVISIONAL GOVERNMENT OF THE FRENCH REPUBLIC AND IN WASHINGTON BY THE PRESIDENT OF THE UNITED STATES ON MAY 28, 1946 Representatives of the Provisional Government of the French Republic and the Government of the United States have met together in Washington and have discussed important economic and financial problems of common interest. These problems have included the need for foreign credits for reconstructing and modernizing the French economy, the settlement of lend-lease reciprocal aid and other war accounts, the purchase of United States surplus property situated in France and certain French overseas territories, the purchase of ships owned by the United States, and international commercial policy. The discussions have brought out clearly the full agreement of the two Governments on cooperation in the fulfillment of the economic objectives which both Governments recognize as essential to world peace and prosperity. The well-being of the people of all nations can be advanced through a full flow of trade which enables each country to maintain higher levels of production and better standards of living. These benefits of world trade can be realized only as the markets of the world are opened to all countries on fair and equal terms. The two Governments are determined to work together in securing general international acceptance of the world trade proposals of the United States to be considered by a conference of the United Nations. The reconstruction and modernization of the French economy will facilitate the integration of Europe in the world economy and enable France to resume her place as a great producing and trading nation. The French Delegation has presented a program for reconstructing and modernizing the economy of France. The immediate objective is to restore French production to the prewar level; the ultimate objective is to expand French production to higher levels commensurate with the technical progress of the past two decades. One requisite for the fulfillment of this program is an adequate and assured supply of coal, not only from increased French production, but also from imports of German coal. The United States Government will continue to assist France in securing an adequate supply of coal from Germany. In the opinion of the American representatives, attainment of the objectives of increased production and trade presented by the French Delegation is necessary to the full and effective participation of France in the world economy. In furtherance of the efforts of the French people to this end, the United States has agreed to the extension of additional credits to France. At the end of 1945 the Export-Import Bank made a loan of $550 million to France. The Board of Directors of the Export-Import Bank have now approved a new line of credit of $650 million. This action has been taken pending the time when the International Bank for Reconstruction and Development will be in full operation. The two Governments have reached complete agreement for the final settlement of all lend-lease and reciprocal aid, including military and civilian supplies furnished by each Government to the other. They have also agreed on the acquisition of United States army and navy surplus property located in France and certain French overseas territories. Under this Agreement, credits of $720 million have been provided for the purchase of surplus property and for goods supplied to France since the end of the war. Discussions are taking place for an additional credit, subject to the provisions of the Merchant Ship Sales Act of 1946, whereby France will acquire approximately 750,000 tons of merchant shipping owned by the Government of the United States. The two Governments believe that the results of the discussions which have now been concluded will help France in reconstructing and modernizing the French economy and are a substantial step towards the achievement of the international economic cooperation which is the prerequisite of a peaceful and prosperous world. They welcome the support of all of the United Nations in establishing a world trading and monetary system which will assure a full flow of commerce to the benefit of the peoples of all countries. LÉON BLUM Approved 5/28/46 DOUBLE TAXATION Exchange of notes at Washington May 6 and 31, 1946, modifying and supplementing convention of July 25, 1939 Entered into force May 31, 1946 Terminated by convention of October 18, 19461 Upon the request of the Government of the United States of America, conversations were held in Paris between the 10th and the 18th of October 1945, between an American Delegation and Representatives of the Ministry of Foreign Affairs and the Ministry of Finance, with a view to modifying and supplementing certain provisions in the Convention of July 25, 1939 2 concerning income taxes, and to laying the bases of a new convention for the avoidance of double taxation in the matter of inheritance taxes and for the prevention of fiscal fraud. In the course of these conversations the question of determining the field of application of the national solidarity tax on nationals of the United States was also examined. These questions have been the subject, recently, at Washington of new exchanges of views between a French Delegation and an American Delegation. I am happy to state that, as Your Excellency knows, the two delegations have agreed upon a new draft convention for the avoidance of double taxation as regards inheritance taxes, for the modification and supplementing of certain provisions of the Convention of July 25, 1939 and for the prevention of fiscal fraud. Pending signature and ratification of the said Convention by our two Governments, I have the honor to inform Your Excellency at once, with a view to its immediate application, of the agreement of the French Government upon the following points: |