RKO Radio Pictures Inc. has agreed to resume supplying 16 millimeter films to the Liberal Union Film Series, Abraham P. Goldblum 2L, an HLU legal staff member, announced last night.

The HLU however will not waive its legal rights in the current controversy despite RKO's latest offer, Goldblum emphasized. He stated that the HLU will continue negotiations with United World Finne, another film distributor which has restricted HLU rentals.

Month Fraces Ended

RKO's concession came after a month's negotiations between Goldblum and RKO lawyers. Goldbuns lineclosed that if RKO had not yielded, HLU would have filed a suit against RKO charging it with action in restraint of trade.

Goldblum also revealed that negotiations with HWF "are still in the infant stage. But we shall try as long as possible to reach a reasonable and peaceful settlement."

"Theaters Protest"

RKO had originally refused to release any films to the HLU "after several local theaters had protested." The action had been based on common trade practice which allows an exhibitor to complain if non theatrical 16mm showings compete with a 35mm theater.

The HLU, however, declared that the distributors action had undermined the "advantageous relationships" of RKO and UWF with HLU.

In line with its new policy RKO offered to rent a 16mm print of "Abe Lincoln la Illinois." Yesterday the HLU executive committee voted to apply for this film for April 19.