After two years as a Washington Post correspondent in Moscow, Anatole Shub has written this short book to rail against the ""Orwellian nightmare state"" created by Khrushchev's successors in their ""grim attempt to turn the clock back."" The only struggle going on in inner circles, asserts Shub, is between the conservatives and the reactionaries, and all suffer from a self-inflicted blindness to real conditions in the outside world. Foreign residents are isolated in compounds, surrounded by local ""helpers,"" and reported on by a ""fink network"" of pseudo-intellectuals, artists, and members of the foreign Community Who aid the KGB in return for special privileges. Wife Joyce got into hot water by befriending a dissident couple and walking in during a KBG search of their apartment. She resisted subsequent lures from two artist ""finks"" to ""come over and view their paintings,"" and two days later Mr. Shub was kicked out of the country to the accompaniment of an Izvestia article attacking his ""antigovernment agitation"" and his ""emigre rabble"" father. Though praising the new martyrs of dissent and the flow of underground samizdat (self-published pieces), Shub pounds home the overwhelming bleakness of the current Soviet situation -- political, diplomatic, economic, and cultural. Though he expects a shakeup soon, he's gloomy over the longer-range perspective.