Iran—or Persia, if one wants to keep the historic name—is in a delicate position and all decisions made regarding its relationship to other countries have to be equally delicate.

For the trouble in Iran dates back to oil. The British—to a lesser extent the American companies—found the Iranians simple-minded folks; and with the customary cleverness of colonial powers, made contracts regarding Iranian oil which were one-sided. [There were no U.S. oil companies in Iran] Eventually the Persian leaders awakened to the nature of the agreements. Spurred on, perhaps, by Communists who were eager to make trouble, they asked a much better contract or expropriation of the oil properties. Britain stood firm; and Mossadegh made capital of it.

But most of Persia’s income came from oil—even if it was getting only the dregs of a bad bargain. Now the country is broke and asks American aid. The United States wants to help but it doesn’t want to prevent Britain from working out a new contract on reasonable grounds for both parties. And pressure is necessary to get Iran going.

So the United States is in difficulties. To deny aid would be to turn the Shah toward Russia which is ready with everything it has. To give aid would be to postpone action on oil with Britain. And Iran is in a delicate position; for it must have money and doesn’t wish to knuckle down to the British, particularly because it realizes how the British cheated it in the first contract.

Here is where Eisenhower tact is needed. [President Dwight D. Eisenhower]