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With Jim Henson, Frank Oz directed The Dark Crystal (1982) , a delightful children's fantasy tale with Muppets. Henson also directed the George Lucas-produced Labyrinth (1986) starring teenaged babysitter Jennifer Connelly in an enchanted land inhabited by Henson's Muppets (as monsters), trying to solve a fantastic, challenging maze in order to rescue her baby brother from the evil Goblin King (David Bowie). The last film produced by Jim Henson was British director Nicolas Roeg's adventure-fantasy The Witches (1990) - adapted from Roald Dahl's novel of the same name, with trademark special effects through animatronics, and Anjelica Huston as a frightening Grand High Witch that threatens to turn two young boys into mice at a seaside hotel convention of witches.
Wallace became active in the Liberal Party and contested Blackpool in the 1931 general election as one of a handful of Independent Liberals , who rejected the National Government , and the official Liberal support for it, and strongly supported free trade .  He also bought the Sunday News , edited it for six months, and wrote a theatre column, before it closed.  In the event, he lost the election by over 33,000 votes. He went to America, burdened by debt, in November 1931. Around the same time, he wrote the screenplay for the first sound film adaptation of The Hound of the Baskervilles (1932), produced by Gainsborough Pictures .