Messersmith,, G.S., Vienna. Despatch No. 1044 to Secretary of State [Cordell Hull], Washington.

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University of Delaware Library, Museums and Press

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Enclosures: See Nos. 844-846. Because of 25 percent increase in contingent fee for foreign films shown in Austria, European representatives of American film companies recommending to their home offices that they no longer distribute in Austria; they contend such increase would cause them to lose money or make no profit, and hope by withdrawal such demandwill be created that the 25 percent increase will be removed; Wildner, head of Economic Division of Foreign Office, said increase in fee was made to aid struggling Austrian film industry; he hoped American films would not be withdrawn for that would leave field open for German films which would have political effects; Wildner informed that Credit Anstalt, the government controlled bank, had purchased 50 percent of the largest film company in Austria to keep shares from falling into German hands; purchase confirmed by President of bank; suggests that Department recommend to film companies they continue distributing in Austria for the present; believes increase in fee may be removed; further suggests certain advantages to be derived from dubbing films in Austria.

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