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duties are payable or otherwise ; ample preference or free entry for films produced within the Empire ; legislation for the prevention of " blind " and " block " booking ; the imposition of requirements as to the renting or exhibition of a minimum quota of Empire films. 7. The sub-committee are in full agreement as to the need for remedying the existing position and promoting the production and exhibition of Empire films, and recommend that remedial measures of the kinds indicated in the preceding paragraph should be considered by the Governments of the Empire. They recognize, however, that circumstances vary in different parts of the Empire, and that although the lack of Empire films is general, the other factors which have contributed to bring about the present position do not Operate in all parts of the Empire, or do not operate uniformly. In the case of Canada and Australia, the division of powers between the Dominion and Commonwealth Governments on the one hand, and the Provincial and State Governments on the other, may constitute an obstacle to uniformity of action. In this connection, however, it may be mentioned that the State of Victoria has already initiated legislation requiring a minimum quota of Empire films to be exhibited, and that New South Wales is reported to be on the point of proceeding along similar lines. 8. It is necessary to emphasize the fact that State action cannot be effective, and indeed', so far as any quota system is concerned, could not be maintained for any length of time, unless two conditions are fulfilled. The first is that there shall be a substantial output of films which not only conform to such requirements as to production within the Empire as may be prescribed in any case, but are also of real and competitive exhibition value. Whatever action may be taken by Governments will be useless unless producers show sufficient enterprise, resource, and adaptability. On the other hand, it should be recognized that suitable Government action, whether legislative or administrative, may be an effective incentive and encouragement to private enterprise in its efforts to place the Empire film industry on a sound footing. The second essential condition is the development of effective distributing arrangements throughout the Empire, different parts of the Empire co-operating wherever possible. 9. Great Britain and Northern Ireland is the largest producer of films and the largest market for films in the British Empire, and any action which it may be found possible to take there would undoubtedly be of the greatest assistance to the other parts of the Empire in dealing with the problem. 10. In some parts of the Empire, films have been produced illustrative of the conditions and resources of those countries or of the activities of Government Departments. Films of this kind attracted considerable attention at the British Empire Exhibition at Wembley, and their display has also been secured in other ways. It would, in the opinion of the sub-committee, be very advantageous if the production and exhibition of films of this nature could be continued and increased. It is understood that the question of the educational use of the cinematograph is to be considered by the Imperial Education Conference next year, and it is to be hoped that the possibility will not be overlooked of co-operation between the Education Departments with regard to educational films which would familiarize children with the life and character of the different parts of the Empire. 11. Finally, the sub-committee feel that a useful purpose would be served if the Governments of the Empire could arrange for the exchange of information as to the progress made in the production of films in their respective territories. 12. The sub-committee recommend, for the consideration of the Conference, the adoption of the following resolution : — " The Imperial Conference, recognizing that it is of the greatest importance that a larger and increasing proportion of the films exhibited throughout the Empire should be of Empire production, commends the matter and the remedial measures proposed to the consideration of the Governments of the various parts of the Empire with a view to such early and effective action to deal with the serious situation now existing as they may severally find possible." Signed on behalf of the sub-committee. 18th November, 1926. S. J. Chapman, Chairman. FOURTEENTH REPORT. SURVEYS OF EMPIRE TRADE. The General Economic Sub - Committee beg to make the following report to the Imperial Conference on the proposal of the Prime Minister of the Commonwealth of Australia for surveys of Empire trade : — 1. The sub-committee were asked to make a report on a suggestion put forward by the Prime Minister of the Commonwealth of Australia at the sixth meeting of the Conference. Mr. Bruce advanced the view that it might be of great value to Empire trade if some sj'stem of stocktaking were undertaken in the form of reports showing what the Empire is producing and what it is buying ; and raised the question whether the Imperial Economic Committee or some similar body should not be entrusted with the task of making such surveys and communicating the results to the Governments of the different parts of the Empire. It is understood that the question what body should undertake this work, if it were decided that it should be proceeded with, was not referred to the sub-committee. It was explained to the sub-committee that the intention was not to arrange for the preparation of periodic comprehensive reports on lines similar to those of the reports issued by the Dominions Royal Commission, but to provide for the preparation and publication of brief surveys of the economic (including statistical) facts in relation to Empire trade in industrial and agricultural products. 2. It is felt by the sub-committee that such surveys, in a number of cases at any rate, would be advantageous in informing the public, and particularly Empire producers, from time to time of opportunities open in Empire markets. And, whether or not they all proved suitable for publication, they

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