Spy Versus Spy

You'll no doubt recall the embassy bugging scandal (admittedly a few scandals back now), in which only a 99? Magic Slate preserved national security and the confidentiality of diplomatic debate inside our wired-like-a-hi-fi Moscow embassy. The press had a circus, leaving us with an indelible image of George P. Shultz, U.S. Secretary of State, silently communicating matters of geopolitical consequence on an erasable writing toy festooned with pictures of Winnie the Pooh.

Embarrassing? Maybe. But the question asked by a lot of enterprise-minded folks was: what are the people at Magic Slate doing with all this?

The answer is: not much. Sixty-four-year-old Magic Slate accounts for just 2% of the $300 million annual sales of its parent, Western Publishing Co. Though thwarting the KGB (and getting the kind of publicity that money can't buy while doing so) has tempted executives to reposition Magic Slate as the counterespionage instrument of choice, Western has decided against the move. To revamp production would take at least a month, William O. Nahikian, vice-president for consumer products, told the press, "and we'd have to turn the company upside down to do it." By the time Western could capitalize, he added, the whole fad might be nothing more than a question for Trivial Pursuit.

For the moment, however, the company is relishing the ride. Since hitting front pages across the country in April, Magic Slate has been retailing 53% faster than normal, and Western has enjoyed a correspondence with the White House. Fifty-two cases of the tablets were "rushed," gratis, to various government agencies. Later, a carefully packaged Magic Slate returned in the mail. Use of the device would "soon be SOP [standard operating procedure] for State, CIA, and NSC," a White House staffer had inscribed. "Please lift cover when you're done reading."

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