Evening star. [volume] (Washington, D.C.) 1854-1972, 1951-07-24
Negotiations 10 End
Iranian Oil Dispute
Snagged
20 Hurrimun Offers Plan
For Operating Company
Controlled by Customers
BY the Associated Press

TEHERAN, Iran, July 24.-Ne-
gotiations between President Tru-
mans special envoy. w. Averell
Hartman, and Iranian officials
were reported to have hit a snag
today over details for ending the
bitter British-Iranian feud over
naturalization of oil.
The snag was not described as a
deadlock. Both Mr.. Hartman
and members of the Iranian gov
ernment's Oil Naturalization
Board still expressed "satisfac-
ton" with progress made in the
talks SO far.
But after 10 hours of discussion
yesterday in the bedroom of ailing
Premier Mohammed Mossadegh.
the Iranian cabinet still had not
reached agreement on a basis for
resuming formal negotiations with
Britain.
Both Mr.. Hartman and the
Iranians were understood to have
submitted proposals "along the
same general lines" according to
a source close to the negotiations.
New Company Proposed.
These would call for British &C
ceptance of Iranian government
ownership of the countiA's rich
oil resources, including the install
lations of the British-owned
Anglo-1ranian Oil Co. which ex-
lploits most of Trans oil. But an
operating company controlled by
the customers who buy Iranian oil
would be set up.
According to the source, Mr..
Hartman proposed that this OPP
Grating company would distribute
and market the oil, and manage
the wells and the refinery at
Abadan-the worlds largest.
The Iranians, however, were re-
ported to have proposed that the
operating company buy Iranian
oil at the Persian Gulf jetties,
distribute and sell it, but that the
nationalized Iranian com pany
would manage and direct the
actual production.
Both sides were trying today to
find a compromise.
GA foreign Office spokesman
in London said Britain had re-
ceived new proposals for break
ing the deadlock - proposals
arising out of the Hartman
talks-and that they were mot
wholly diScouraging.")
Can't Accept Iran Plan.
Mr.. Hartman apparently felt
unable last night to accept the
Iranian proposal. He has been in
close contact with British Ambas-
sador Sir Francis Shepherd and is
well informed on how far Britain
| is willing to go toward a compro-
mise.
The British have said fatty they
cannot participate in operations
unless Iran agrees not to interfere
in the actual management. Brit
ain has expressed willingness.
however, to compromise on the
basis of oil naturalization so long
as her technicians and experts are
given a free hand in running the
business.
The negotiations came to a tenn
lporary halt while Iran waited for
lBritain's reply to these latest pro-
posalS.
Police Scatter Crowd.
Meanwhile, the Iranian Army
paraded through the streets of
the capital with 20 Sherman tanks
and infantrymen with fixed bay
onets in a show of strength
against new threats of Com
munist demonstrations.
| A crowd of several hundred per-
sons. mostly women, massed in
the square outside Parliament
this morning as the Malls Clover
housed met. Police scattered the
crowd without violence; but dep
utieS in Parliament warned that
riots may break out again over
the Seething oil issue.
i The women carried placards
demanding the release of their
relatives, who were jailed when
Communists and nationalist
lrioted on the day Mr.. Hartman
arrived over q week ago.