My friend Chagalov (a research-genius) came up with very credible arguments that it’s the photo mentioned in the telegram.
Possible evidence: + Smith mentioned a "Little Girl" in the telegram + "…living without contamination of prettification for photographer." + the camera settings could fit (4EM, F2, NEXT SHUTTER SPEED OVER HUNDRED) + a situation in which the copy had to be given urgently (thus: newspaper, magazine) + the telegram says "Child of Song" -> the LIFE cover says: “Listening to Folk songs”
Please let me know if you have any other suggestions! Hint: The picture must have been taken between 1945 and 1948 (Western Union President: Joseph L. Egan).
THE QUESTION WAS: Does anybody know what photograph W. Eugene Smith is writing about in this telegram? (see Photo Quiz #2)