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No. Certain quotes in this film are verbatim to quotes in the 1968 film, but the screenplays are quite dissimilar. In this film, far more character development is made on behalf of Ulla and there are no real musical scores (save the Springtime for Hitler play) in the 1968 film. The basic plots and characters are the same, though (they are after all based on the same source material and share the same name), but this film is 35 minutes longer than the 1968 film.
One of the most notable changes between the two versions is the removal of this character. There are presumably three reasons why they removed his character:1. The LSD character is pretty dated to the 1960's, and portraying Hitler as a beatnik/hippie might not seem as funny to either modern or foreign audiences. On the other hand, the humor in portraying Hitler as flamboyantly gay is more accessible and universal to audiences (as well as ironic, given Hitler persecuted homosexuals).2. Furthermore, this version of The Producers is set in 1959 (never stated in the film, but indicated in the Broadway show's original playbill). So having a hippie character would be anachronistic.3. Finally, removing LSD allows both Franz and Roger to play larger roles in the story.
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