Messersmith, G.S., Vienna. Despatch No. 1034 to Secretary of State [Cordell Hull], Washington., 1937 January 29

Austro-German trade agreement signed Jan. 26; one provision affects film industry; no quota for films from abroad is to be established but 25 percent increase in contingent fee may be burdensome; American film industry, which has distributors in Austria, may not be seriously affected; only one film producing company of importance in Austria; formerly company was owned jointly by German and Austrian interests, but Austrian interest, which happens to be Jewish, recently sold its shares; transaction carried out through Credit-Anstalt, principal Vienna bank and it is believed shares have gone to the German interest; if German interests control film production in Austria they will soon control theatres also, and use them for propaganda and political purposes; Austrian government has been non-discriminatory, but in face of German ownership of the industry, it would be almost impossible to enforce its policies; this would affect the showing of American films in Austria.