Evening star., 1951-05-24
Hiqh Fever in Iran

Fanatical nationalists, religious zealots and
the outlawed Communist Tudeh Party have sue
ceeded-through a combination of incendiary
talk and outright terrorism-n inf1aming Trans
temper to point where something like miracle
may be needed to prevent an explosion over the
issue of Matchmaking and expropriating the
British-owned Anglo-Iranian Oil Company.
The situation is SO supercharged with
emotions that common sense seems to have been
driven into full retreat. Londons reasonable
request for high-level negotiations with the
Teheran government has been fatty rejected, and
the United States because it has supported that
request in friendly spirit, has been accused by
Premier Mohammed Mossadegh of interfering
in the country's internal affairs Meanwhile, in
the streets of the capital huge rallies have been
held to give vent not only to violent harangues
against the British but to bitter anti-American
propaganda as well.
In such an atmosphere, especially because
Premier Mossadegh and his chief aides have con-
sciously aggravated it instead of trying to calm
it down. anything can happen, including even
violence of sort that could conceivably force
Britain to take military action to protect British
lives and property-a development that could
lead in turn to Russian intervention in the north,
a Communist coup d'etat, and the possible out
break of great war Yet, despite the explosive
is so much at stake for the Iranians themselves
as we'll as for the free world at large-that it is
hard to believe that they will not take sober
second thought and join with all other parties
concerned in working out some kind of cooling
off period in which logic, reason and the due
processes of international law will be employed
to bring about satisfactory settlement
Iran, after all, needs such settlement just
as much as Britain does. About 10000 of its
citizens are employed by the Anglo-Iranian Com
pany which is by far the biggest industry in the
country. Further, the Teheran govern n1e'+ de-
rves almost half of its total national revenue
from the royalties and concession fees paid by
the company. Accordingly, If the naturalization
project is carried out too hastily or without
careful provisions insuring things like the main
tenance of skilled management for efficient pro-
duction and the continued availability of British
shipping facilities for undiminished marketing
to present customers, Trans economy can be
thrown into terrible tailspin. Quite obviously,
Premier Mossadegh cannot afford to deal emo
tionally with this extremely difficult and complex
problem Since the oil involved can be sold
nowhere else in the foreseeable future Ito pipeline
it to Russia would be extremely diff1cult), the
vital interests of all Iranians demand realistic
agreement under which their great petroleum
treasure will continue to be exploited in sound
manner ana kept moving, WITHOUT serious letup,
to the countries now buying it.
Of course, as Secretary Acheson has observed,
Iran, as sovereign nation, has right to ma
tionalize it's petroleum. But from the stand
point of international law in view of the bilat-
eral contract that is supposed to govern the oper
atons of the British company until the year 1898,
1t is on untenable ground in refusing to negotiate
and insisting on unilateral action to do away
with the concession. In this connection, in
Justification of its position, the Teheran govern
ment has referred to Mexico's 1888 appropriation
of foreign oil properties, most of them American.
What it seems to have ignored, however, is that
that action was followed by protracted negotia-
tions until settlement was finally agreed upon
In 1943.
AS matter of fact, although the two situa-
tions are by no means identical, the parties to
the Anglo-Iranian dispute could do worse than
look closely at the history of the Mexican ex-
preparation If they do then both Teheran and
London may find some irspiration for an elev-
enth-hour move to establish cooling-of period.
Certainly the greatest measure of restraint and
craftsmanship is urgently needed. The oil at
issue is of vast Importance to Iran Britain,
Western Europe and the entire world Failure
to arrive at sound and friendly agreement
could have the gravest consequences not only
in terms of economics but in terms of the
balance between war and peace.