Question: Basil asks the American male guest (Mr Hamilton) if they have palm trees in California. The American replies that, "They say Burt Lancaster has one, but I don't believe them." The DVD then appears to cut prematurely to the next scene. Is there a hidden or subliminal joke here that I'm missing?
Answer: A possible explanation can be found here: http://tviv.org/Fawlty_Towers/Waldorf_Salad Quote: "This is, of course, sarcasm, as southern California in general and Los Angeles in particular is famous for its palm trees".
Chosen answer: Mr Hamilton referred to the M5 as a "little backstreet". In response Basil sarcastically apologises for it being narrow, despite being a multi-lane motorway, and makes a comment about cars in the UK having steering wheels because American roads are often built straight.