Evening star., 1952-09-26
Iran Might Go Red,
Mossadegh Warns in
Note>on Oil Dispute
By John M. Hiehtower
Assoeio,ed Pres. Sfoff Writer

United States officials saw some
hope today-but not very much
in Premier Mossadegh's latest pro-
posal for a settlement Of his coun-
try's oil dispute with Britain.
The Iranian Premier's tough
talking note-he appeared to i'm
ply his country might go Com
munist unless his demands were
met-was received here yester-
day, addressed to President Tru-
man. It was in the form of q
copy of a detailed set Of counter
proposals which he addressed in
italy to British Prime Minister
Churchill.
Tough in Three Respects.
/. Mr.. Mossadegh rejected as
''inequitable" a Joint settlement
plan which Mr.. Truman and Mr..
Churchill placed before him on Au-
gust 80:
2. He waved the apparent Com
munist threat.
3. He gave only 10 days from
today for an answer.
The implied threat to yield to
communism was seen in this para
graph:
In the present circumstances
the Iranian nation may follow one
of two roads: either it should en-
deavor to improve the social con-
ditionS and ameliorate the situa-
tion Of the deprived classes, some
thing that would be impossible
without the income from oil. or, if
this road should remain blocked, it
should surrender itself to probable
future events which would be to
the detriment Of world peace"
Quick Consultation Planned.
State Department officials said
there would be quick consultation
between British and American
leaders who have struggled with
the Iranian problem for months,
not so much because Of the oil
dispute itself as because Of the
strong belief here that unless the
dispute is settled the threat OF a
Communist takeover in Iran is.
indeed, serious.
The principal reason for hope
among American experts now is
that Premier Mossadegh has not
closed the door to a settlement.
One informant said "our policy
certainly is to keep the door open
and we will do all we can to that
end now that he has not closed II"
However, the odds against a set
tlement still appeared almost over
whelming. particularly because one
of Mr.. Mossadegh's powerful polit-
ical supporters has already at
tackled his proposals as too soft
and in effect threatened an over
throw of the government if they
are accepted.
Uncertainty Persists.
The Western powers thus found
themselves in a position of uncer-
tainty over what Iran eventually
would be prepared to accept in the
way of a deal. if anything. The
basis of the Premier's proposition
was that claims for compensation
by the Anglo -Iranian Oil Co. as a
result Of Iranial naturalization
of oil ID months ago could be de-
termined by the International
Court Of Justice at The Hague.
MI. Truman and Mr.. Churchill
had proposed this so there was no
dispute on that point.
Mr.. Mossadegh, however. laid
down a number of conditions
which would have to be agreed to
before the case went to the court.
One would limit the Anglo-Iranian
Oil Co. claims to compensation for
actual loss of physical property.
thereby eliminating any claim for
loss Of profits.
But what is regarded here as
the most difficult obstacle is a
demand that Britain pay to Iran
f49 million which the Anglo
Iranian Oil Co. had been accumu-
lating to pay increased royalties
to Iran under an agreement which
the Iranian Parliament never
ratified.
Mr.. Mossadegh has always con-
tended this money really belonged
to his country and now he has
insisted, as State Department Of
ficials read his note, that it should
be paid in pound sterling con-
vertible into dollars. That would
mean a maximum dollar demand
on Britain's slender dollar re-
SorvnC