This is an interesting insight into Dylan's curiosity and creativity. Here he teaches a writing technique called the "cut-up method" to a posse of journalists. The audio is a bit difficult to understand, so I've transcribed the conversation below as well as in the captions for this video (just click CC and the subtitles that I manually created will pop up).
This technique is something that I've heard Dylan use in some of his songs; he'll switch logically-ordered lines in order to make it sound more fun and whimsical. I can't trace an example as of writing this but will update it if one comes to me. Feel free to comment if you've seen this before in Dylan's work.
After this interview, there was a photo session. Dylan held a typewriter. Interestingly enough, I managed to find the exact photo that was taken here and edited it into the video.
DYLAN: It's very hard to explain, I wish I had...
INTERVIEWER 1: Have you read John Lennon's book?
DYLAN: Yeah.
INTERVIEWER 1: Is it anything like that?
DYLAN: Not really...
[tape is changed]
DYLAN: ...you cut it up.
INTERVIEWER 1: What do you mean you cut it up?
DYLAN: Uh... I wrote out the song, you know? And then I cut it up on the paper, like into four. I cut it up in the middle, then I cut it across. And then I rearranged the paper, so it comes out like this. Can I have a piece of that paper?
INTERVIEWER 1: Yeah, of course.
DYLAN: It's just a technique, which some people say some people invented and other people say other people invented. And some people say it's a very old technique. But it goes like that, and you write what you wanna write all through here.
INTERVIEWER 1: Yeah.
DYLAN: [Tearing the paper methodically] And then you cut that. See? And then here's the way it would go, right? This is the way it looks.
INTERVIEWER 2: That paper is now covered with ordinary writing?
Dylan: Yeah, this is ordinary writing. It's covered like that, right?
INTERVIEWER 2: Yeah.
DYLAN: Let me just take these two [pages] and put them here.
INTERVIEWER 2: Mr. Dylan, are you telling us the truth?
DYLAN: Yes.
INTERVIEWER 2: [Laughs]
INTERVIEWER 1: You play about like a...
DYLAN: Well it's called... [Inaudible]
INTERVIEWER 1: It's like a jigsaw puzzle.
DYLAN: Yeah.
INTERVIEWER 1: But you already did this once?
DYLAN: Yeah, just for one song. It didn't work out 'cause the rhyming scheme was kind of weird.
INTERVIEWER 2: Is this for your book, or is this a separate thing altogether?
DYLAN: This is separate... William Burroughs did it in, you know, Naked Lunch.
Peace & Love,
~SP