Evening star., 1951-06-07
By The Associated Press

TEHERAN, Iran. June T.
American Ambassador Henry F..
Grady said today intelligence re-
ports indicated increased Soviet
military activity along Trans
northern frontier. But he added
he saw nothing particularly sig-
|niflcant" in the reports.
Authoritative government OFF,
cia1s confirmed published reports
that unusually large Russian mill
tary concentrations had been seen
on the northern frontier and that
Soviet battle exercises are con-
tinuing in that area.
The Soviet armies were de-
|scribed as engaging in "unprece-
|dented" military maneuvers on
both sides Of the Caspian sea.
Iran border police have heard the
sounds Of gunfire continuously for
three days,
Giant Field Gun Installed.
Mr.. Grady made his statement
lat a news conference when queried
about the reports. He said Amer
ican intelligence knows that there
has been some increase in Russian
defensive Notifications, but moth
ing further. Other sources said
the Soviets have installed a giant
field gun opposite an Iranian
guard post along the Azerbaijan
frontier.
Shah Mohammed Reza Pahlevi,
Prime Minister Mohammed Mos
sadegh and Trans Army chief of
staf1 have been informed of the
latest developments along the
frontier.
The border activity reports come
in the midst Of tension between
Britain and Iran over the nation
alization of the Anglo -Iranian
Oil Co.
A crowd of more than 1000
enthusiastic supporters of nation
alization Jammed the railroad sta
ton this morning as two of Trans
three temporary directors of the
country's oil industry left for
Southern Khuzistan Province
the oil field area.
The crowd cheered wildly as
Hussein Maxi. firebrand leader in
DR.. Mossadegh's government
shouted "this is a struggle for our
life. We must 60 ahead and never
retreat"
U. S. in Mediator Role.
The British are trying to get
the best deal they can out Of the
situation. The United States,
with Mr.. Grady on the scene, is
in the role Of mediator in a situa-
ton which has tremendous sig
|nif1cance for the West because of
the need to keep Trans oil avail
able for Britain and the Western
defense program.
Iranian intelligence sources con-
slider the Soviet activity along the
border as countermoves to British
naval movements In the Persian
Gulf and the dispatch Of Para
chute troops to Cyprus-wtthin
easy dropping distance Of the
southern OH fields.
These sources say IL is notable
that the Soviet activities began
about two months ago. at the time
of riots In Ahadan and the first
reports Of British warship move
ments.
Truckloads of Soviet soldiers are
driving along the Soviet side of
the border with loud speakers
blaring Russian songs and propa-
ganda, these informants said.
Yesterday an Iranian army
source said the border reports were
"au true"
Board to Go to Oil Field.
Meanwhile. the Iranian govern
ment announced it has placed a
$6 million fund at the disposal
Of it's three-man board of direc-
tors set up to operate the holdings
of the British controlled oil COM
pany. The board was slated to
leave today for Khuzistan, site of
the oil fields.
Another agency set up to imple-
ment the naturalization lava
three man subcommittee Of the IL
member parliamentary oil board
may leave for the Oh fields tomor-
row.