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...the giant octopus clearly hurls obscene epithets at Kong before fleeing. I had my wife listen in to make sure I was not imagining things, and she too clearly heard the octopus hiss "f**ker" twice at Kong before heading back to the ocean.
LOL...! This is a new one on me.

This is actually the most radically changed of all Godzilla films for US release. The original Japanese version is a light-hearted, almost-comedy, with satiric barbs aimed at rampant Japanese consumerism/capitalism. Even the battle of the titans is played for... well, maybe not laughs, but certainly with a twinkle in the eye. The dorky US version plays it completely straight and makes the Japanese portions look unintentionally funny, instead of intentionally.
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It wasn't merely that OBie suspected that this movie was lifted from his KING KONG VS. FRANKENSTEIN idea--it actually was lifted from his KING KONG VS. FRANKENSTEIN idea...
Wellllllll... it's of course true that Toho was able to secure the rights to the Kong character through John Beck, via him shopping the O'Brien script around. But I'm not sure the idea (and certainly the script wasn't) of pitting Kong against Godzilla was "lifted" from O'Brien's script. Monster battles (of course) didn't begin with O'Brien, and the idea of waging a battle between the world's two most famous giant monsters would seem to be a natural. I can very easily see this concept originating independently of O'Brien's script, though it does sound as if he was mistreated by John Beck.
"If I had a hidden microphone inside of my heart, I would turn the power on..."