511.6121/5–650: Telegram
The Acting Secretary of State to the Embassy in the Soviet Union
426. Emb shld proceed immediately announce price cut Amerika to Soyuzpechat along lines Deptel 345 Apr 21 with modifications as follows:
Reur 1309 May 6,1 after further reconsideration Dept prefers five ruble price. Drop from ten to three appears desperation move, leaves insufficient area for further drop in event smaller format introduced, and offers Soyuzpechat extra arguing point on basis it wld undercut excessively new Russian equivalent Soviet Union at six rubles. Moreover price of latter wld appear dispel any possible US or world reaction Amerika still too high at five rubles.
Also consider essential Emb flatly inform Soyuzpechat it can retain two and one half rubles of new five ruble retail price, rather than negotiate on percentages, since Soyuzpechat wld have some grounds for argument if it suffered loss income while still distributing same magazine.
Re overprinting and stamping: Emb shld not accept return copies of No. 39 or any earlier issues at present, even for purpose stamping, view possibility Soyuzpechat finding technical reasons for refusing reaccept them. Prefer propose Soyuzpechat handle overstamping these issues or make arrangement therefor and credit expense against Emb account. Dept airpouching dozen rubber stamps and suitable colors ink and pads for easiest restamping. Emb authorized make any feasible arrangement Helsinki for overprinting 40, 41 and 42 if considered necessary but use USIS staff as originally proposed appears faster well as cheaper. Dept will handle overstamping issues 43 and thereafter before shipment.
[Page 1197]View above, Emb shld proceed immediately with written submission to Soyuzpechat as outlined in six numbered paragraphs of Deptel 345, altering Point 3 to make retail price five rubles and Soyuzpechat retention two and one half rubles, Point 4 to cover issues 39 and earlier only, and Point 6 to cover 37 through 39 only.
Recommend Emb seek hold consequent negots to minimum and keep matter of routine sale No. 40 and future issues at new price separate from technicalities of stamping and new selling effort on issues 39 and earlier. While proposing latter to Soyuzpechat as outlined, and refusing accept return copies on Emb premises pending negot, Emb authorized per Deptel 424 May 1 to drop issue of reselling old issues if convinced it will result in Soyuzpechat refusal accept full fifty thousand of future issues.
Forwarding separately draft reply to Vishinsky note for delivery FonOff immediately fol Soyuzpechat submission.2 Purpose is to cap Vishinsky points with broad statement our position for the record, in event later publicization whole exchange. No publicization planned at moment, but official notes and background press release documenting Sov campaign to stifle magazine will be held for instant release in event Sov publicization of issue or overt action to bar Amerika.