Evening star., 1952-03-23
Iran Oil Crisis
World Bank Missions Apparent Failure Aids
And Comforts No One Except the Russians
By John c. Henry

Suspension last week Of negotia-
tions between the Iranian government
and a special mission from the World
Bank on the problem of restoring the
Iranian oil industry to operation
leaves almost all interested parties
still losers. The exception is Soviet
Russia, undoubtedly delighted that
the deadlock continues and satisfied
Temporarily at least-that oil is
being denied to the West and that
important revenue is being denied to
the Iranian economy.
Despite a joint statement that
there had been some points of agree
ment reached and that the bank mis-
sion is prepared to return when and
if it appears further progress can be
made, the truth Is that little was
accomplished. From this distance the
fault does not seem to lie with the
banks negotiators.
There is no longer any issue about
the principle of naturalization Of
Iranian oil. Britain, the other party
to the dispute through its ownership
of the Anglo-Iranian Oil Co., has
acknowledged the principle. The
issues today are how to restore the
fields and the Abadan refinery to
production and what prices are to be
charged for the products. The most
recent negotiations foundered on the
production question.
Irnn Lacks ToIent
Iran does not have the qualified
personnel, either on the managerial
side or the technical side. to operate
its valuable property. Foreign per-
sonnel could be recruited to fulfill
this function without infringing on
Iranian rights or sovereignty. The
bank was willing to assume the re-
sponsibility of recruiting this person.
mel If it could reach agreement with
the Iranian government on having q
free hand to pick qualified men. In
the opinion of experts in the petro-
leum industry, such qualified force
would necessarily include some Of the
Britishers who are most familiar with
the Iranian facilities and the work.
ing conditions encountered there.
Premier Mossadegh, not keen
about foreigners in general is par
ticularly allergic to BritonS-at least
in the Iranian oil industry. His rea-
soning may be understandable, but
at this point it has produced neither
oil nor revenue.
Iran Is now enjoying q New Years
holiday period. When it ends. new
Parliament viii come into Legislative
session. Its complexion, in the first
instance anyway, Is perhaps more
pro- -Mossadegh than the outgoing
Parliament. Even so. there are re-
ports of an increasing amount Of
criticism Of policies which have shut
down the country's greatest industry
and deprived the government Of its
greatest single source Of revenue.
Impoct Not So Severe
AS it happens. the economic Inn
pact on Iran has not yet been so
+. severe as expected. The Iranian
economy Is on low level at best and
government services are neither as
extensive nor as costly as those Of
more prosperous and advanced coun-
tries. Seemingly, their impairment
or complete absence today are being
ignored or unrealized.
Still, Trans request for q $120
million dollar loan from the United
States reflects the Iranian awareness
Of their economic plight. America,
Of course rejected the request. and
this may prod the Teheran govern
ment into a more realistic attitude.
There is little or no oil production
in Iran today. Petroleum engineers
estimate that it would take from Six
months to year to bring the Abadan
4 -