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4. The Sub-Committee is gratified to note that substantial progress has been made in the exhibition of Commonwealth films. This is mainly due to their improved quality, and in s-ome parts of the Commonwealth the progress is ascribed to the quota system which requires that a stipulated proportion of such films be exhibited. 5. It has been suggested that aid might be given to the distribution of Commonwealth films and at the same time revenue might be derived by the imposition, in addition to the footage customs duties now in force, of a special levy upon the value of all foreign films displayed, this levy being based on the value of such films for renting purpose, while Commonwealth films are exempted from the levy. We appreciate that in practice the collection of the levy could not be made at the moment of entry because the actual value on which it should be assessed might not be ascertainable until renting contracts are made. 6. We have had under consideration the different methods of censorship in various parts of the Commonwealth. Clearly the extent and method of censorship is a matter entirely within the authority and discretion of each country. It is, however, plainly in the interests of the distribution of Commonwealth films and in the interest of producers of those films that they should be acquainted with the conditions of censorship obtaining in each part, and that films distributed in the different parts should be of a character and form requiring the minimum of censorship and consequent mutilation. The evidence produced to us shows that difficulties in this regard have been largely overcome of late, but we would recommend that, in order to obviate any difficulties in the future, close contact should be maintained between Commonwealth producers and the censorship authorities in the different countries. In particular, it would be convenient if close liaison of this kind could be maintained in London between the High Commissioners' offices and the Board of Film Censors. 7. The Sub-Committee agree to refer to the Committee on Methods of Economic Co-operation for consideration a proposal that those Dominions which levy a duty on films should consider the possibility of admitting a single positive of each Commonwealth film, without payment of duty, under bond for exportation within thirty days, in order to afford exhibitors an opportunity of viewing the film without the payment of duty upon those films which prove to be unsuitable for display. 8. Radio. —The Sub-Committee urges the Committee on Methods of Economic Co-operation to recommend closer liaison between the responsible bodies controlling radio in all parts of the Commonwealth. This would assist towards the ideal of ensuring accessibility to the whole Commonwealth of all material and programmes of general interest. It should lead also to an interchange of facilities possible through mechanical recording and reproduction. For the Sub-Committee, J. G. Coates, Chairman.