linguistic:paraphrasing, quality:corruption
It's All True

In July 1941, Welles conceived It's All True as an omnibus film mixing documentary and docufiction in a project that emphasized the dignity of labor and celebrated the cultural and ethnic diversity of North America. It was to have been his third film for RKO, following Citizen Kane (1941) and The Magnificent Ambersons (1942). Duke Ellington was put under contract to score a segment with the working title, "The Story of Jazz", drawn from Louis Armstrong 's 1936 autobiography, Swing That Music. Armstrong was cast to play himself in the brief dramatization of the history of jazz performance, from its roots to its place in American culture in the 1940s. "The Story of Jazz" was to go into production in December 1941.

Mercury Productions purchased the stories for two other segments—"My Friend Bonito" and "The Captain's Chair"—from documentary filmmaker Robert J. Flaherty. Adapted by Norman Foster and John Fante, "My Friend Bonito" was the only segment of the original It's All True to go into production. Filming took place in Mexico September–December 1941, with Norman Foster directing under Welles's supervision.

In December 1941, the Office of the Coordinator of Inter-American Affairs asked Welles to make a film in Brazil that would showcase the Carnaval in Rio de Janeiro. With filming of "My Friend Bonito" about two-thirds complete, Welles decided he could shift the geography of It's All True and incorporate Flaherty's story into an omnibus film about Latin America—supporting the Roosevelt administration's Good Neighbor policy, which Welles strongly advocated. In this revised concept, "The Story of Jazz" was replaced by the story of samba, a musical form with a comparable history and one that came to fascinate Welles. He also decided to do a ripped-from-the-headlines episode about the epic voyage of four poor Brazilian fishermen, the jangadeiros, who had become national heroes. Welles later said this was the most valuable story.

Required to film the Carnaval in Rio de Janeiro in early February 1942, Welles rushed to edit The Magnificent Ambersons and finish his acting scenes in Journey into Fear. He ended his lucrative CBS radio show February 2, flew to Washington, D.C., for a briefing, and then lashed together a rough cut of Ambersons in Miami with editor Robert Wise. Welles recorded the film's narration the night before he left for South America: "I went to the projection room at about four in the morning, did the whole thing, and then got on the plane and off to Rio—and the end of civilization as we know it."

Welles left for Brazil on February 4 and began filming in Rio on February 8, 1942. At the time it did not seem that Welles's other film projects would be disrupted, but as film historian Catherine L. Benamou wrote, "the ambassadorial appointment would be the first in a series of turning points leading—in 'zigs' and 'zags,' rather than in a straight line—to Welles's loss of complete directorial control over both The Magnificent Ambersons and It's All True, the cancellation of his contract at RKO Radio Studio, the expulsion of his company Mercury Productions from the RKO lot, and, ultimately, the total suspension of It's All True.

In 1942 RKO Pictures underwent major changes under new management. Nelson Rockefeller, the primary backer of the Brazil project, left its board of directors, and Welles's principal sponsor at RKO, studio president George Schaefer, resigned. RKO took control of Ambersons and edited the film into what the studio considered a commercial format. Welles's attempts to protect his version ultimately failed. In South America, Welles requested resources to finish It's All True. Given a limited amount of black-and-white film stock and a silent camera, he was able to finish shooting the episode about the jangadeiros, but RKO refused to support further production on the film.

"So I was fired from RKO," Welles later recalled. "And they made a great publicity point of the fact that I had gone to South America without a script and thrown all this money away. I never recovered from that attack." Later in 1942, when RKO Pictures began promoting its new corporate motto, "Showmanship In Place of Genius: A New Deal at RKO", Welles understood it as a reference to him.