Immediate Release
April 2, 2004

Contact: Bert hammond @ (202) 225-7084

WATSON RELEASES LETTER URGING ENTERTAINMENT STUDIOS TO CURB
OUTSOURCING

Washington, D.C. - Congresswoman Diane E. Watson (D-CA-33rd) today
released a letter to Jack Valenti, Chairman and CEO of the Motion
Picture Association of America (MPAA), urging entertainment companies
to curb the practice of "runaway production" - the outsourcing of U.S.
film and television productions to foreign countries. The letter was
co-signed by 27 Members of Congress, including ten members of the
California delegation.* 

The letter cites the decision by Universal Studios to film the movie
Cinderella Man in Canada as a specific example of outsourcing in the
entertainment industry. The movie, starring Russell Crowe and Rene
Zellweger, is scheduled to start shooting in Toronto on April 19. It
traces the fairytale rise of Depression-era hero James L. Braddock
from a poor local fighter in New Jersey to the heavyweight boxing
champion of the world.

"This phenomenon of bringing U.S. film productions to foreign
countries solely for profit has caused serious damage to local
economies across the country," said Congresswoman Watson. "It has not
only affected the labor force of the U.S. arts community, but also
threatened the livelihood of small businesspeople who may operate
restaurants, dry cleaners, and hotels dependent on film and television
productions."

"I simply want to urge the studios to exercise a level of
self-discipline and keep productions in the United States," stated
Watson. 

According to the Department of Commerce, the phenomenon of runaway
production is costing the U.S. economy as much as $10 billion per
year. During the past year, major productions such as The Core,
Paycheck, Timeline, Cold Mountain, X-Men 2, and Miracle, with
storylines based in the United States, were all filmed outside of the
country. 

The letter has received strong endorsements from various locals of
major unions, among them The International Alliance of Theatrical
Stage Employees, Moving Picture Technicians, Artists, and Allied
Crafts (IATSE), the Teamsters Union, the Laborers' International Union
of North America (LIUNA), and the International Brotherhood of
Electrical Workers (IBEW). 

Congresswoman Watson represents the 33rd Congressional District of
California, which includes many entertainment companies such as Sony
Studios, Capitol Records, American Film Institute, Raleigh Film and
Television Studios, and parts of Paramount Studios.

The Text of the Letter: 

April 2, 2004

Jack Valenti
Chairman and CEO
Motion Picture Association of America 
15503 Ventura Blvd
Encino, California 91436

Dear Mr. Valenti: 

We write to express our serious concern with the phenomenon of
"runaway production," or outsourcing, in the entertainment industry.
For example, while we applaud the effort by Universal Studios to tell
the triumphant story of James J. Braddock in "Cinderella Man," one of
our nation's greatest boxing heroes, we are deeply concerned by the
outsourcing of its filming to Canada. For our economy and the hundreds
of U.S. jobs affected by the production of "Cinderella Man," we
strongly urge you to call on Universal to reconsider. 

As you are aware, the phenomenon of film and television productions
developed and based in the United States but filmed in another country
for economic reasons has cost the U.S. economy tens of thousands of
jobs and billions in revenue. Studios choosing to film the Civil
War-based "Cold Mountain" in Romania and last year's Oscar winner
"Chicago" in Toronto are stark examples of placing profits over
American jobs. Despite the U.S.- based themes of these movies, many
U.S. workers were denied opportunities to participate due to their
filming locations. 

Universal's film traces the fairytale rise of James J. Braddock from a
poor local fighter to the heavyweight boxing champion of the world.
His story is intrinsically American. The talents and hard work of the
U.S. creative workforce should not be overlooked in the creation of
such an All-American tale. 

We are aware that subsidies provided by foreign countries to film
makers have put the United States at a serious disadvantage. Indeed
Congress and many state and local governments are currently working
hard to curb the epidemic of runaway production through various wage
credit and tax incentive proposals. While we continue to seek out
legislative solutions to the issue, we hope your member studios will
take into account the millions of Americans who have lost their jobs
to foreign labor forces by refusing to participate in the further
outsourcing of U.S. jobs. Their decisions will not only impact
families whose heads of households are struggling to find and keep
work, but also send a strong message that U.S. jobs in the
entertainment sector are not for export. 

Director Robert Altman recently refused to shoot any more American
films in Canada based solely on economic reasons. Clint Eastwood also
insisted on shooting "Mystic River' in Boston. We note and commend Mr.
Ron Howard, the director for "Cinderella Man," for making his last
sixteen films in the United States. We hope Universal Studios will
seriously reconsider filming "Cinderella Man" in Canada, and ensure
future decisions on film location will take into account their impact
on U.S. economy and jobs. 

Sincerely,

*List of Letter Co-Signers: Raul Grijalva (AZ), Brad Sherman (CA),
John Conyers (MI), Marcy Kaptur (OH), Carolyn Kilpatrick (MI), Bernard
Sanders (VT), James McGovern (MA), Joe Baca (CA), Albert Wynn (MD),
Linda Sanchez (CA), Alcee Hastings (FL), Major Owens (NY), Lois Capps
(CA), Darlene Hooley (OR), James Clyburn (SC), Lynn Woolsey (CA),
Louise Slaughter (NY), Rosa DeLauro (CT), Anna Eshoo (CA), Eddie
Bernice Johnson (TX), Karen McCarthy (NY), Bob Filner (CA), Nita Lowey
(NY), Hilda Solis (CA), Juanita Millender-McDonald (CA), Loretta
Sanchez (CA), and Sherrod Brown (OH)