The confidence of Premier Mohammed Mossadegh of Iran in his ability to sell oil has been shaken and pause has been given to those American petroleum interests which hoped to market the product confiscated from the Anglo-Iranian Oil Co., by the ruling of the Aden Supreme Court on the cargo of the impounded Italian tanker, Rose Mary.

Nine hundred tons of oil were in the hold of the Italian vessel under Honduras registry which endeavored last June to run the first shipment from Abadan to Italy for processing by a Swiss company. The ship put in at Aden and was immediately impounded.

The cargo, the court held, remains the property of the Anglo-Iranian company until adequate compensation is paid by the Iranian government for the shipment and stores taken over by the decree of nationalization.

This ruling should, as a matter of fact, expedite a settlement between Iran and Britain. But so irrational have been the moves of Iran’s dictatorial premier that an early adjustment should not be counted on.

Mossadegh is hard pressed for finances. He commands about enough funds to keep the state running for another year. These were to be supplemented by sale of the oil stores piled up in the tanks at Abadan when the British were ejected and by what small quantities the Iranians could refine themselves.

Mossadegh has so far rejected all attempts at settlement either directly with the British through the World Court or by American mediation. Instead he has tightened his hold on the country and made himself dictator for six months. Even his own supporters including Deputy Premier Hussein Makki have balked at Mossadegh’s request that his authority be extended. [Hossein Makki]

The Aden ruling does not in any way reflect on right to nationalize its oil resources. That has long since been recognized by all the parties concerned. It does however rule against the sale of property that has not been paid for while the title remains with the original owner.

If Mossadegh can muster enough common sense he will see the sensible course to be a settlement on the property issue at once. This ruling may do more than American intervention which has been a bit too frenzied in fear of Russian intervention to bring an end to the dispute.