Evening star., 1951-06-18
U. 5. Envoy 10 Confer
With Premier in Move
To Calm Iran Oil Talks
BY the Asseeiatsd Press

TEHERAN, Iran, June 18.--I
American Ambassador Henry F.
Grady planned to meet ailing
1ranian Premier Mohammed Mos
sadegh today in move aimed at
lowering the temperature of the
boiling Anglo-Iranian oil crisis.
DR.. Mossadegh has just received
a personal message from British
Foreign Secretary Morrison ex-
pressing the hope that British
Iranian negotiations on the fu-
ture of the billion-d Anglo
1ranian Oil Co.-whoSe holdings
Iran has acknowledgements be
conducted in a friendly atmos-
phere.
Mr.. Grady has been urging both
sides to keep cool. Through inter-
cession with the premier he al
ready has obtained an extension
until tomorrow for the British to
reply to an Iranian demand for
immediate payment of rs per cent
of the company's profits. Finance
Minister Mohammed Ali Varasteh
had threatened to break off nego-
tiations unless the funds were
handed over yesterday.
Immediate Payment Hit.
Iranian sources said British
negotiators, at an informal meet
ing at DR.. Mossadegh's country
residence yesterday, said it would
be technically impossible to do
this.
These informants said the
British, while baking at the i'm
mediate payment of profits, sug-
gested that "if Iran is hard pressed
for money, the AIOC probably
could make some advance cash
turnover pending continued dis
cusSions."
Until Iran nationalized her oil
in April, Anglo-Iranian had been
making advances to the govern
ment on royalties not due until
next year. These payments, which
made up the bulk of Trans rev.
enues, then ceased.
1t was unclear whether the re-
ported British offer referred to a
resumption Of these payments or
to an offer made by the Foreign
Office last Saturday to split oil
profits $3.50 with Iran.
Meanwhile, the tenSeness of the
situation was illustrated by re-
moval of British women and chill
dren from the refinery area of
Abadan. AIOC's resident man.
.ager, A. E. C. Drake, said all but
240 of more than 1000 who for
merly lived there with their hus-
bands and fathers have gone.
They were not ordered out. "
he said, ''but we provided facilities
for any who wished to CO."
Mr.. Drake told newsmen. how
ever, that he had not asked for
protection from any source other
than the Iranian police and mill
tary. Some British warshipS are
in the Persian Gulf and British
troops are on duty within striking
distance at Cyprus and the Suez
Canal Zone.
Refinery Production Up.
He said the presence of an
Iranian naturalization team at
Abadan-the worlds largest re-
finery-had not proved handi-
cap to normal operations and that
production was running a bit
ahead of last year.
K. B. Ross, manager of the re-
finery, told Associated Press Cor
respondent Fred j. zusy at Abadan
that, if the Iranians take over,
production would drop to nearly
zero in six months.
The West relies heavily on Aba
dan for oil for it's defense pro-
gram and civilian needs. The re-
finery now produces 20 million
gallons of gasoline a day includ-
ing 100000 gallons of aviation
fuel.
Mr.. Ross declared the Iranians
lack the technical and managerial
ability needed to run the plant.
He said British employees had made
it clear to the naturalization team
that they would not work for a
nationaliZed company.