Nationalization of Iran’s oil industry, which has become operative under an Imperial decree by Shah Mohammed Riza Pahlevi, is an event to inspire deep apprehension among leaders of the Western powers. [Mohammad Reza Pahlavi] It can be regarded only as an adverse development, one which, in spite of reassurances from Teheran, invests the future of Europe with deeper uncertainty.

The nationalization of Iran’s fabulously rich oil industry, which is basic to the nation’s economy, is a reflection on British diplomacy, also upon the consistency of the Labor Government’s policies. Iran is in a position to view Britain’s reaction of resentment with ironic amusement. Is not the nationalization of industry a settled British policy? And if it is good for the economy of Britain why should it not be desirable for Iran?

Regardless of the justification for the decision, however, government operation of oil production in Iran impairs the interests of Britain and also of the United States. And there is no certainty that it will be proved through experience to be in the best interests of Iranian economy. It must be considered as unfortunate, especially in view of the fact that it might have been averted.

British interests have enjoyed a rich harvest in Iran. They have operated on the most favorable economic terms. Sentiment for nationalization might have been restrained and the movement controlled if there had been a great readiness to sacrifice peak profits in an effort to cultivate a more friendly public feeling.

The advantages to be gained were worth great concessions, not only by Britain but also by the United States, whose program of military and economic aid to Iran has been slow in assuming practical form. Primarily, however, the passing of Iran’s oll resources to government control is due to what Conservatives in Parliament have denounced an “the weak and vacillating policy” of the Labor Government.

An official Iranian statement is designed to dispel fears of the West that the change involves insecurity and danger. The Iranian government, it is maintained, has at its disposal the technical means of providing an uninterrupted and a maximum production of oll. Furthermore, the present purchasers oil will continue to be supplied abundantly.

But the fact remains that control of oll resources which might mean the difference between defeat and victory in war has passed. This change alone represents a gain for Russia, which looks to the Near East for what it needs most to wage war effectively and which it now lacks. Iranian oil is a rich prize which may be the incentive to the next Soviet aggression.