SHOW BUSINESS: Through the Loophole

Hollywood, troubled by 3-dementia and TV tremens, has another ailment: wanderlust. In "the film capital of the world," only 27 pictures were in production last week (as against 33 a year ago). But there were 48 rolling in Italy and 13 in Mexico. "The industry," said the A.F.L.'s Hollywood Film Council, "is committing suicide by letting production go abroad."

A big reason for this is an amendment to the 1951 U.S. tax law. To lure engineers, construction workers and other skilled hands to work on economic-development programs overseas, Congress generously exempted from...

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