It took Hollywood no time at all to make up its mind. Less than 24 hours after Britain's Government levied a new tax which, in effect, will take 75% of the gross earnings of U.S. films, Movie Czar Eric Johnston announced that Britain would get no more of them. Cinemoguls, meeting in a 3½-hour session with Johnston, angrily charged that the tax was confiscatory. "If the British want American pictures," said Johnston, "they shouldn't expect to get a dollar's worth for a quarter."

The producers also charged a breach of faith. The tax came just as they were negotiating a...

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