THE SOVIET UNION



would feel such reduction tended to prove contention of current flood
of articles in Soviet press featuring economic dislocation in USA and
prophesying decay of American capitalism. Present high quality
of America-slick paper, excellent color reproductions and generous
size--is to Soviet readers symbolic of success of American system.
Embassy believes that downward revision of any of these features
would represent to Soviet people an American retreat.
  Embassy's Soviet contacts unanimously agree that illustrations in
America carry more punch and are more convincing than any printed
matter. As one of them said, "One good picture tells more about USA
than thousands of words". For example, picture spread of an average
American school, a small town, or even an average American kitchen
dramatizes to Soviet readers fact that we have, contrary to everything
they are told by their propaganda, a superior standard of living and
culture. Pictures are more difficult to refute than text as "sheer Ameri-
can propaganda". And they have thus far not been subject to Soviet
censorship.
  America has not been arriving regularly on a monthly schedule.
Soviet authorities originally agreed in effect to monthly issue. We
should not continue to lose out on this score.
  Embassy realizes that America is expensive project. Intake from
10,000 sold copies, we realize, is insufficient to cover cost and deficit
must therefore be made up out of taxpayers' pocket. For reasons out-
lined at beginning of this telegram and for reasons which will be
covered in subsequent message, Embassy feels that Government is
justified in underwriting magazine's financial losses. Govt has in-
vested in project and has after much effort secured an entry to small
but influential public in USSR. We should not throw away this
initial investment by abandoning magazine, or reduce its effectiveness
by compromising on its quality. Embassy is again requesting Soviet
authorities to permit increase of circulation sufficient to make Amnerica
pay for itself.30 If we receive a negative answer, we shall continue
to press for increased circulation hoping that eventually America
can become independent of Government subsidy and possibly even
pay back into public treasury funds which have been advanced to
finance it.
                                                          KENNAN
 "O Mr. Kennan reported in telegram 304, January 31, from Moscow, that
he sent
 a letter to Assistant People's Commissar for Foreign Affairs Solomon Abramovich
 Lozovsky requesting a paid circulation of 50,000 copies for the magazine.
When
 no answer had been received, he renewed his request on February 23.
 (811.20200 (D) /1-3146, 2-2746)



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