THE SHAH OF IRAN, Morammed Reza Pahlevi has said frankly that his country is in need of quick financial assistance. [sic — Mohammad Reza Pahlavi] This is not remarkable after more than two years in which oil revenues have been cut off by the obstinacy of ousted Premier Mohammed Mossadegh about expropriated British interests.

But neither the Shah nor his new Premier, Gen. Fozollah Zahedi, can undertake to come to a quick agreement on this issue. [sic — Fazlollah Zahedi] Part of their support in suppressing the Communist Tudeh Party consists of strong Islamic nationalist elements, and of course their own devotion is primarily to Iran. “We are not beggars,” said the Shah. “However, we must have help now if we are to save the country.”

His statement that, if necessary, aid would be accepted even from the Soviet Union recalls uncomfortably the Mossadegh line. [Except Mossadegh never said this] But there is a feeling among western nations that the Shah and General Zahedi are reasonable men and can in time work out a fair adjustment of the petroleum controversy.

This being the case, there will be a strong disposition in Washington to find ways of supplying funds to tide over the newly installed government until negotiations can be begun. This might be done through the current foreign aid program. But first there is the matter of reestablishing diplomatic contact between Iran and Britain.

The entire matter will need to be explored with caution and restraint rather than with hasty expectations. For while it is reasonable to wish the oil compensation issue referred to the World Court, General Zahedi must be sure that Iranians understand and support this move before his government can attempt it. Hence, while recent changes are ground for hope, there must still be patience. And there must in particular be a disposition to deal generously with Iran, not to take advantage of its plight.