There are two reasons why Britain and America are so eagerly trying to regain access to Iranian oil. The first is because it is necessary to keep this oil from the Russians if possible. The second reason, which is more important and less dog-in-the-manger than the first, is the fact that the two English-speaking nations need the oil themselves. The fact that the British have been deprived of their holdings makes it necessary for this country to help to meet the British need. This constitutes a heavy drain on our own petroleum reserves.

The latest proposal made to Mossadegh includes American aid in the form of dollar grants and credits, and a chance for Iran to convert her frozen sterling balance in London into dollars. The chances that Mossadegh will accept the proposal are better than they have been at any time since the start of the dispute, for the wily old premier is having trouble in his own country. A great deal of Iran’s income was dependent upon oil, and the production and sale of oil has all but halted. The Iranian people know that their plight is due to Mossadegh’s stubbornness. [Oh?]

If Mossadegh can get a favorable agreement with England and the United States, he may be able to start the flow of oil royalty payments again and thus consolidate his position. Perhaps the time has come to press even harder for an agreement with Iran on the matter. Iranian nationalism has kept the Russians out and complicated our own negotiations. But we enjoy one advantage over the Russians and it is a highly important one. We have the money Mossadegh needs and money talks. When he has drawn the last possible concession from us, he may be ready to talk business.