They end up at the storage room door, and the principal gives Sasha a cryptic "Good luck" before leaving him down there all by himself.
Sasha enters the storage room, and it's filled with the broken statue of Stalin, photographs (with faces crossed off), and other assorted items.
The senior lieutenant of State Security greets Sasha. He tells him that this room is where things go to be forgotten, and then reads to Sasha the letter he wrote to Stalin the day before, affirming Sasha's loyalty to the Pioneers and Stalin.
The State Security dude tells Sasha that he won't have to renounce his own father if he'll agree to be a spy in the school. He wants Sasha to report suspicious behavior, a.k.a. fink on his friends.
At first, Sasha flat out refuses, saying that he doesn't want to be a snitch. But then he gets another hard lesson: his own dad was a big old snitch himself, the senior lieutenant points out. So much for Sasha's hero worship of his dad.
And the horrible revelations just won't quit coming: Sasha's dad apparently turned in his own wife for being an enemy of the state.
The lieutenant gives him one more opportunity to make the so-called right choice, and sweetens the deal by saying Sasha can carry the banner in the Pioneers rally later.
But then he pulls out the big old stick in his carrot-and-stick persuasion technique (of course there's always a stick in these types of situations, right?): if Sasha does not agree, he'll be taken immediately to prison.