Premier Mossadegh’s request for a long-time American loan to bolster Iran’s tottering financial structure places this country in a delicate—and embarrassing—position. If the loan is, denied, as it is likely to be, since it would call for the advance of about $150 million during the coming year, we might well be blamed for the collapse of the Iranian Government. If it is allowed and the Mossadegh faction continues in control, the chance of settlement of the British oil dispute would appear even more remote than it is at the present.

There is no particular danger in Mossadegh’s overthrow, per se. But the possibility that additional internal discord and chaos in Iran might react to the advantage of the Kremlin is distressing. The pressures from the northern border of the backward little country are tremendous. Reds, on the ground, are prepared to take full advantage of every opportunity. They need Iran — and particularly her oil resources — on their side of the Iron Curtain.

If the loan which the Premier is requesting would promise a permanent solution of the country’s problems there might be some sense in granting it. But that promise is questionable — to say the best. The difficulties lie far deeper. There is an inherent lack of technical skill and ability of governmental know-how. These cannot be built in a year — or in a decade. It would seem that other ways must be found for solving Iran’s pressing problems, and for keeping her within the orbit of the West.

The difficulties involve all the free world. But they involve Britain and the United States primarily. At the moment there seems to be no clear understanding between these two great powers — no definition of policy on which both agree. Until this is forthcoming, it would seem impossible to arrive at any real settlement — or even to answer intelligently Mossadegh’s request.