After David Picker of United Artists gave George Lucas $10,000 to develop American Graffiti, Lucas hired Richard Walter, a fellow graduate of the USC School of Cinematic Arts, to expand the existing Lucas, Gloria Katz, and Willard Huyck treatment into a screenplay. Walter initially tried to persuade Lucas to abandon the Modesto concept in favor of his own story, Barry and the Persuasions, about East Coast teenagers in the late 1950s. Lucas refused, insisting that the film had to reflect the West Coast teenage culture he knew.
When Lucas returned from Europe in June 1971 and read Walter's screenplay, he was appalled by its tone. He felt Walter had turned the modest, autobiographical coming-of-age story into something resembling a lurid exploitation picture, complete with overtly sexual material, fantastical behavior, dangerous “playing chicken” sequences, and a subplot in which Steve and Laurie went to Nevada to marry without their parents' permission. Lucas wanted the film to resemble the way he and his friends had actually lived, not a sensationalized hot-rod movie. Walter rewrote the script, but the creative disagreement remained irreconcilable, and Lucas fired him after paying him the development fee. Lucas then wrote his own first draft in roughly three weeks, using particular songs from his record collection as the intended backdrop for individual scenes. The episode established Lucas's determination to control the tone of his films—a trait that later became central to his relationship with studios and collaborators.
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