Evening star. [volume] (Washington, D.C.) 1854-1972, 1948-03-12
Eric Johnston Signs
Accord With Britain
Ending U. 5. Film Ban
BY the Associated Press


Hollywood's ban on movie ship
ments to Britain, the United States
film industry's main foreign market.
The pact, effective for four years
beginning June IA, provides for lift
ing of the rs per cent tax that
Britain clamped on the earnings OF
foreign movies last August as a
dollar saving measure.
In return, Hollywood agrees to
limit its dollar takings from Britain,
whose economy is threatened by a
shortage of hard currency.
The agreement was signed by
-. Harold Wilson, president Of the
FBoard of Trade, and Eric Johnston,
president Of the Motion Picture Az
ISOLATION OF America. 1t repre-
sented more than two weeks OF In
tensive negotiations.
Text to Be Published Later.
It was Page l news in Britain
British movie houses had faced the
prospect of closing their doors be-
cause they are dependent on Ameri-
can studios for more than 30 per
cent of the pictures they show.
The American movie makers, IN
reprisal, stopped all film shipments
to Britain when the rs per cent tax
was announced.
Mr.. Wilson and Mr.. Johnston
told a news conference this morning
the full text of the agreement will
be published later.
Though it covers a four-year
period, it will be reviewed at the end
Of two years.
Taking into account Britain's pre-
carious economic position, Mr..
Johnston agreed to limit dollar with
drawals from the country to SIT ,00O,-
900 a year plus an amount equiva-
lent to the dollar earnings of Brit
ish-made films.
Most Will Stay in Britain.
British movies shown in the
United States last year, he said,
earned about s4,O00,0OO. He pre-
dicted they would grow to two or
three times that-which, in itself,
was several times any previous years
take.
Mr.. Wilson said major portion
of the pounds sterling earned by
United States pictures in Britain
will remain In Britain.
He added part could be used to
build new studios and increase
United States sponsored productions
here.
Dollar remittances to American
industry from Britain last year were
estimated at SAT, 100000
Mr.. Wilson said American film
earnings remaining in this country
also will be invested in British Sc
curities, including government bonds
and in a British hotel industry
catering to American tourists. A
Joint control committee, probably
including two British government
representatives and two from the
United States film industry, will SUI
pervise the spending.
Charitable Uses Mentioned.
The amount of extra earnings
spent outside the British film indus
| try will be limited to 10000, 900 dur.
/ ing the first two years Mr.. Wilson
and Mr.. Johnston said the dispose
of the remainder will be subject tt
consultation. Under the agree
ment it may be cleared by agreed
transactions" not involving any
strain on the British foreign ex.
change position.
Mr.. Wilson said such transactions
may include charitable or public
uses, including the encouragement
of the arts and sciences.
I'VE hope we can help finance an
art theater in London, to be built
on the Thames" Mr.. Johnston said
He explained he had in mind the
restoration of the Old Globe Theater
where Shakespeare's plays first were
produced.
Later, Mr.. Johnston said without
elaboration:
1--WE hope to take most of our
earnings out"
Will Make More Films Abroad.
Mr.. Wilson said the text OF the full
agreement will be published after
Mr.. Johnston has settled few de-
tails on his return home. He IL
sailing tomorrow.
Motion Picture Association execu-
tives said American producers are
certain to use much Of their unre-
mittable sterling to increase the
number of films they make in Great
Britain.
During the first two years of the
agreement, Mr.. Wilson said, a maxi
mum amount OF E2,500.0oo tabout
$4,000, o0o Of the sterling earnings