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Wednesday November 27 8:05 AM EST

UPDATE 2: Disney's Lama Trauma: China Syndrome Feared

By Anita M. Busch

HOLLYWOOD (Variety) - The Walt Disney Co. is forging ahead with its plans to distribute Martin Scorsese's "Kundun" in the U.S., despite potential problems with the government in China, where Disney has been focusing its expansion plans.

"Kundun" is the story of the Dalai Lama, his Holiness Tenzingyatso, who was born in 1935, recognized as the 14th Dalai Lama at the age of 2, and was enthroned when he was 5. The film covers the Chinese invasion of Tibet in 1950 and his subsequent expulsion into exile nine years later. He currently lives in Dharmsala, India, where he acts as head of the Tibetan government-in-exile and frequent China critic.

"We have an agreement to distribute 'Kundun' domestically, and we intend to honor that agreement," Disney spokesman John Dreyer said. The film is currently in production.

Scorsese's film is not the only picture that will come under scrutiny from China. Brad Pitt is starring in "Seven Years in Tibet," directed by Jean Jacques-Annaud.

The seeds for Disney's potential problem were sown earlier this year when Disney president Michael Ovitz brought Scorsese into the studio under a four-year pact, with "Kundun" driving the deal. Ovitz was Scorsese's former agent at Creative Artists Agency.

At the same time he entered into that deal, Ovitz had been traveling to and from China in an effort to open the country's consumer marketplace for Disney in a Richard Nixon-like foray.

"Kundun" was put aside by Scorsese's longtime home at Universal Pictures before Christmas 1995 because of its budget, a potential marketing problem and the possible conflict with China, all of which were discussed in meetings internally at the time. (Under an earlier regime, Universal stood behind Scorsese on another controversial film, The Last Temptation of Christ.)

Scorsese and his CAA agents then took the project to Disney, which led to the overall production deal.

Scorsese was asking for a $35 million budget, to which Disney ultimately agreed. However, Scorsese's overhead is substantial, and Disney executives were said to be reluctant about getting behind an epic film about the Dalai Lama. It sold off the international rights (excluding Britain) at the Cannes Film Festival.

However, Kundun is a pet project for Scorsese, who has been developing the property with Melissa Mathison (E.T. The Extraterrestial) since 1992. It is the first of two pictures he is contracted to direct for Disney over the next three years.

Until recently, China allowed in only 10 films a year through its government-run China Films. Three studios in China are now allowed to bring in one additional film each. Last year, Toy Story, Waterworld and Jumanji received Chinese distribution.

Reuters/Variety


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