October 1991: David Cronenberg is mixing his feature Naked Lunch. He is approached by record and film magnate David Geffen to direct M. Butterfly, an adaptation of the Tony Award-winning Broadway play written by David H. Hwang and produced for the stage by Geffen and Stuart Ostrow.

The play is based on the true story of Rene Gallimard, a French diplomat who falls passionately in love with Song Liling, a diva of the Peking Opera. Gallimard is later charged with passing documents to the Chinese government through Liling, is arrested, and discovers in court that his lover is a man.

Naked Lunch had been a long haul. Cronenberg, not wanting to wait the usual two years between writing and directing an original screenplay, is interested. Though a script exists, changes are required to adapt it to Cronenberg's distinct style and vision.

Hwang flies to Toronto from New York and spends a couple of weeks in discussion with Cronenberg. Their dialogue focuses less on the politics of the play and more on an intimate portrayal of the two lovers.

December 1991: Hwang completes a new draft of the screenplay. Cronenberg calls Geffen to say he is pleased with the script and ready to go. Gabriella Martinelli, who has worked with Cronenberg since Dead Ringers and co-produced Naked Lunch, is to produce the film.

Martinelli and production manager Marilyn Stonehouse prepare a budget of us$20 million, with primary locations in China, Paris and a Toronto studio. Geffen and the distributor, Warner Bros., feel the budget is too high for this type of film.

To cut costs, the main Paris locations are switched to Budapest, including the Paris Opera House, which is replaced with the comparable Budapest Opera House. Geffen and Warner Bros. accept a revised budget of us$18 million and preproduction begins.

Cronenberg and Martinelli form an independent Canadian production company, M. Butterfly Productions, through which the film will be produced. Unlike some studios which like to run interference, Geffen and Warner Bros. promise, and maintain, a hands-off approach.

From the onset of the project, Jeremy Irons (Dead Ringers, Reversal of Fortune) has been considered the perfect Gallimard. He accepts the role due to the challenge that it offers and for the opportunity of working again with Cronenberg.

February 1992: Casting agent Deirdre Bowen is sent on a scouting mission through the u.s., Hawaii, Europe and the Far East to find the perfect Song Liling. She spends almost four months searching exotic locales for a femininely beautiful "unknown" Asian actor. Although she finds many men who look more like women than men, there are none strong enough to handle the many subtleties in the film, especially in the last quarter where it is necessary to be extremely convincing as a man. It is clear the role is too demanding for a non-actor.

Martinelli, in discussion with Jeremy Thomas (producer: The Last Emperor, Naked Lunch), receives advice about shooting in Communist China. Because of the social and political content of the film, Martinelli is extremely cautious about approaching the Chinese government. Thomas offers help in introducing her to the appropriate Chinese authorities. He arranges to send his line producer on The Last Emperor, Mario Cotone, to meet her in Beijing, China.