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dated October 5, 1951: Wisdom needed over Persian oil dispute

With Dr. Mossadeq's Iran digging in her heels, Britain possibly drew closer to war in the bid to retain her right to exploit Persia's oil reserves through the Anglo-Iranian Oil Co. For the moment a mollifying step had been taken, but the situation was yet growing alarming. Editorial comments: ``British oil technicians in Abadan have been withdrawn, though Premier Attlee had assured earlier that no such complete withdrawal was contemplated. Tory and Labour have so far been together in tackling the Persian problem. But Winston Churchill's latest electioneering speeches indicate that the Conservatives have decided to make an issue of it. The Labour Government is blamed for ``inadvertence, incompetence, indecision, and final collapse.'' It is difficult to see what else the Government could have done. The U.S. is clearly unwilling to underwrite military intervention in Iran. In Korea, there were American troops in strength available near the troubled area and, from the moment of intervention, Americans have borne the brunt of the war. Though some of her forces have been concentrated in the waters adjoining Persia, Britain is in condition to fight a similar war by herself. There is also the possibility of Russia intervening in Iran. With no end in sight for the fighting in Korea, America is obviously reluctant to engage in another war, especially in an area where Russians can concentrate their forces more quickly. The U.S. is also anxious to assume moral leadership in non-Iron Curtain countries, and intervening militarily in Iran now would rouse the Arab world... Despite Mr. Harriman's refusal to transmit a Persian note asking for Britain to resume negotiatory talks, the U.S. apparently still feels that Britain should have agreed to do so, as there seems to be hope for a solution to be found by letting Persia be in complete charge of the oil wells, and Britain having full control over oil distribution. When Dr. Mossadeq comes to present Persia's case before the Security Council, the U.S. State Department might press him to try for an amicable settlement. The Security Council is obviously in favour of quick, behind-the-scenes settlement. But Russia's veto may yet prevent it from considering the issue, as both Soviet and Yugoslav spokesmen have held that the Council cannot discuss what is essentially a domestic problem of Iran... What is now needed is moving to achieve a peaceful solution. It would be wise for both the parties to accept friendly mediation and arrive at it. The danger of Persian oil falling into unfriendly hands should be warning enough to tone down extreme demands.''

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