By Army Archerd, Daily Variety Senior Columnist

HOLLYWOOD (Variety) - Merry Christmas and Happy New Year. This will be my final column for 1996, resuming here Jan. 3.

Home in time for the holidays is Martin Scorsese, having wound the difficult shoot in Morocco of Disney's Kundun, the story of the Dalai Lama. He was appreciative of those in the creative community whose letter applauded Disney's decision to distrib the picture, despite pressure from the Chinese government. Scorsese declined signing the letter, believing it was improper for him, since it is his picture. He continues to complete post production in N.Y. and L.A. The film is scheduled for release in the Fall in the U.S.

Meanwhile, back from China is Donna Smith, president-CEO of Entertainment Coalition, who was invited there by Asian Film Entertainment, a private company seeking her advice on "challenges and opportunities" for the film biz in China. Smith's company is the insurance company for both Kundun and Seven Years in Tibet for Mandalay/TriStar starring Brad Pitt who is one of those on China's latest blacklist, which bans its roster from visiting Tibet.

After a three-week visit in China, Smith told 'em, "The whole country has to make an adjustment to global thinking." She met three members of the government censor board, which decides what can be shown there. They would only say they heard about the "opposition" to the making of Kundun by Beijing's Film Bureau of the Ministry of Radio, Film & TV. Smith said her hosts, Asian Film Entertainment, "wanted to show us they can do things (movies) privately." She also viewed their operation in Hong Kong, which will be under Chinese orders next year.

Coincidentally, I spoke with Stanley Tong, just back from receiving Taiwan's Golden Horse Award for First Strike, Golden Harvest's Jackie Chan starrer. (The pic is distributed here by New Line, bowing in the U.S. Jan. 10.) Tong also directed Chan's Rumble in the Bronx. He segues to Disney and Mr. Magoo starring Leslie Nielsen. Why does Tong believe he was chosen to direct Magoo? "They want the movie to be more international like 'First Strike,' with body language that can be understood in any part of the world. Leslie Nielsen is great for that." They met over the weekend to discuss the film.

Tong is talking another pic with Disney and is prepping Ruddy-Morgan's Wet Work about three "sexy" women with, no doubt, lots of "body language." Two femmes talked to are Mira Sorvino and Halle Berry. Tong's also talking with Jackie Chan to do a pic set in India.