New Disney Company to Finance French Films in U.S.

In a move that could score critical points with the French government, Walt Disney Co. said Friday that it is creating a company within its Miramax Films unit to promote the distribution of French films in the United States.

Disney, which will also increase cartoon production in Paris, is providing about $6 million in start-up funds for the company. It will invest $20 to $30 million more each year in European co-productions.

Disney denied that the announcement was linked to recent U.S.-French cultural tensions or designed as a public relations move to help its ailing Euro Disney theme park outside Paris. Nonetheless, Hollywood executives said the move could help blunt French hostility toward Hollywood and curb efforts to limit the number of American movies and TV shows available in France.

The announcement comes less than a year after the U.S. entertainment industry was excluded from the General Agreement on Tariffs and Trade. Saying that American products overwhelm the French market, French officials have called for limiting American audiovisual imports.

The French film industry, which ranks fourth in the world, is declining in almost every market abroad, according to a July report by France’s National Cinematography Center.

In addition to financing about five movies a year, the new Miramax subsidiary--headed Miramax Vice President Agnes Mentre--will dub some movies into English and release classic French films in the United States.

“French cinema has entertained and enlightened filmgoers for 100 years now. Our impulse is to broaden that in America,” Vice Chairman Roy E. Disney said.

The new company, tentatively called Miramax Zoe, will provide support to money-strapped French directors and allow U.S. side to provide advice early in the filmmaking process, Miramax co-President Harvey Weinstein said.

“With Disney financing, Miramax will acquire films at the script stage,” he said. “In past investments there has never been any input or suggestions on casting.”

Immediate plans are to release a subtitled version of Patrice Chereau’s “La Reine Margot” (Queen Margot) starring Isabelle Adjani.