Evening star., 1951-09-18
Mossadegh Reported
Shaking Up Cabinet
In Oil Controversy
BY the Assoeiatsd Press

4 TEHERAN, Iran, Sept. 49,
Prime Minister Mohammed Mos.
sadegh was reported today to bt
shaking up his cabinet to strength.
en- his nationalist government
against internal political opposi.
ton and economic pressure from
Britain.
Finance Minister Mohammet
Ali Varesti has submitted his res.
ignation, informed sources said
He has been reported increasingl,
critical of DR.. Mossadegh's f1nan
cial policies in the light of Iran'
loss of oil revenues.
Mr.. VareSti, who headed tn,
Iranian delegation in the unsuc.
ceSsful talks with Britain's repre-
sentative Richard Stokes, sup.
ported the naturalization by Iral
OF the Anglo-Iranian Oil Co. hold
ings, but opposed DR.. Mossadegh'
policy of getting tough with tn,
British regardless of the economic
consequences.
Deputy Prime Minister Hosseir
Fatemi said cabinet shifts are il
the wind, but that new minister.
would not be presented to the
Shah before Saturday.
Prepares for Showdown.
DR.. Mossadegh apparently is
readying for a showdown battle
with his Mails opposition. He
said Sunday in a radio speech he
had no intention of leaving office
until his oil program is carried
out.
The cabinet has been meeting
on how to deal with British eco
nomic pressure. The government
already is striking back by placing
severe restrictions on the British
Bank of Iran and the Middle East,
second largest British enterprise
in Iran after the now national
lied Anglo -Iranian Oil Co. The
British bank is banned from fur
ther dealings here in foreign ex-
change, and all government
owned enterprises, factories and
insurance companies will be in
Structed to withdraw their &C
counts from the bank.
Diplomatic sources said the
bank, a main credit source for
Iranian merchants for so years.
probably would have to cease op-
erations If these orders are car
ried out to the letter.
Qn London the bank issued a
statement saying that even If
the foreign exchange authorize
ton were withdrawn. this
would not prevent the bank
from carrying on other bank
ing business in Iran.~
Will Decide on Ultimatum.
Mr.. Fatemi said the cabinet
would decide by Saturday what
action it would take to carry out
its ultimatum to Britain to re-
open oil talks with Iran within
two weeks. w. Averell Hartman,
President Truman's special repre-
sentative to deal with the Iranian
oil problem, refused yesterday to
transmit the ultimatum, threaten
ing the expulsion of 300 British
technicans still at Abadan unless
the talks are resumed.
DR.. MoSsadegh has sent the ul-
timatum to Washington for de-
livery to Britain in hopes of get
ting the United States, trouble
shooter to enter the stalled nego-
tiations again.
Mr.. Fatemi also said Mr.. Har-
riman's letter asked DR.. Mossa-
degh to modify the terms of his
note and was not a complete re-
lection of the ultimatum idea. The
note was not made public.
Soviet Shipments Lag.
Mr.. Fatemi said Russia will in
crease sugar shipments II Iran
asks. But Western observes dis
count Mr.. Fatemi's talk Of buying
more from Russia because ship
ments have been tagging. The two
countries signed a trade agreement
last November calling for an esti-
mated $40 million exchange of
such goods as cotton, rice, hides
and other goods for Russian tex
tiles, cement, machinery and other
manufactured goods.
Iran Fails to Complete