Evening star. [volume] (Washington, D.C.) 1854-1972, 1951-11-20
Iran Seeks q Loan

The exact status of the request from Trans
Premier MOSsadegh for a loan of American
dollars has been obscured by an impressive
volume of official circumlocution. Mr.. Truman,
however is reported to have said that the request
will be given very careful consideration.
1t should be considered most carefully for
there are several factors which cast extreme
doubt on the wisdom of making such loan.
First, there is the question of Trans pro-
spective ability to repay loan. Mr.. Mossadegh
wants to borrow S120 million, TO be advanced
at the rate of $40 million month. BY our
standards that is not great deal of money. But
it is great deal more than Iran can possibly
repay unless and until some arrangement is
worked out for reviving the flow of her lost oil
revenues This, therefore, would seem to be an
essential condition of any loan-that satisfac-
tory procedure be set up for refining and selling
Iranian oil.
The second question has TO do with British
reaction to an Iranian loan. When everything
has been said in criticism of Britain's past
mistakes in dealing with Iran, the fact remains
that it was the 1ranian government which
unllaterallv Cancelled the contract with the
Anglo-Iranian Oil Company. that it was the
Iranan government which forced the British out
of Iran, and apparently, that it is the Iranian
government which continues to block Satisfac-
tory adjustment of those differences. At any
rate, the last British offer would have brought
Iran about 5000 million a year from her Oil
resources, and that is more than the total of
the requested loan Britain, of course, has not,
and should not have, veto power over this
countryS loan policies. But Britain has very
legitimate interest in Iran, and one would think
that this Government having in mind our future
relations with the British, would hesitate long
time before making loan which, in effect would
finance the Iranian government in its refusal to
come to some reasonable settlement with the
British.
Presumably the factor which looms largest
in our own Governments consideration of this
question is the imminent prospect of bankruptcy
in Iran. This is a most serious matter, for the
collapse OF the present regime might pave the
way for assumption OF authority by the pro-
Russian elements in Iran and the eventual
emergence of that country as another Soviet
satellite.
Certainly We cannot look with Indifference
on such prospect But neither can we afford to
yield to the pressure technique which takes the
line that If you don't bail us oHt We'll turn to
the Russians If that ever becomes accepted as
a basis for American loans, there is no telling
where it will lead us. At least, we would expose
ourselves to similar pressure from every country
whose strategic or geographical position is Sucn
that a similar threat can be invoked.
In the Iranian matter, 1t would seem wiser
to refrain from advancing brides disguised as
loans. If the Iranian government will do So it
can settle the oil controversy on a basis that
would safeguard Trans legitimate interests and
national aspirations and which would also make
possible loan as sound business venture If
it will not do this, even in the face of internal
disintegration, then it is very doubtful that any
real interest of ours can be protected by advances
Of money