OIL REFINERY IN ABADAN

Press, Volume LXXXVII, Issue 26510, 27 August 1951, Page 7

OIL REFINERY IN ABADAN

Persians Study Plan For Reopening (N.Z. Press Association—Copuright) (Rec. 9 p.m.) TEHERAN, August 25. The Persian Government is studying plans to reopen the oil refinery at Abadan, formerly operated by the British.

Dr. Hussein Fatemi, personal assistant to the Persian Prime Minister (Dr. Mussadiq), said this to-day. He continued: “We believe we can produce crude oil on our own, and perhaps refine a small quantity for local Persian needs.’’ Persia would sell oil to any buyers who provided their own transport and paid cash. Dr. Fatemi added: “I am sure the talks will be resumed because the last proposals were not rejected by the Lord Privy Seal (Mr Richard Stokes), but were taken to London to be studied.”

Mr Stokes said before he left Teheran that he did not consider the Persian counter-proposals, handed to him by Dr. Mussadiq last Wednesday, could be considered as a basis for new talks. Britain had decided to leave a skeleton staff of 350 at the Abadan refinery in the hope that the Persians would eventually agree to conditions under which the British staff could continue their work. In London to-day, a Foreign Office spokesman denied that Mr Stokes had brought, new Persian proposals for study. The spokesman pointed out that Mr Stokes himself said last Friday that the discussions had been completely suspended, and that he was waiting for a new move from the Persians. Letter to Mr Harriman

Dr. Fatemi released the text of a letter from Dr. Mussadiq to Mr Averell Harriman, President Truman’s special representative, who left Persia for Belgrade on Saturday. The letter said the Persian counter-proposals should become the basis of new negotiations. “It is the earnest desire of the Persian Government that the counterproposals submitted by Persia to the British delegation should receive careful consideration and the Government expects to hear the British views on the same,” the letter said.

“We do not claim for a moment that our proposals are adequate enough for the object in mind, but we desire that the proposals should become the basis for new negotiations. “The proposals submitted by the British delegation lacked due consideration of the economic and political independence of Persia. Furthermore, the normal commercial practices prevalent among nations were also disregarded. Hence the Persian Government decided not to accept the proposals.” All Britons will be out of the South Persian oilfields by to-morrow night, instead of by Monday, under the speeded-up evacuation schedule. Three of the smaller oilfields were completely evacuated to-day. The moderate newspaper , “Atesh,” which until recently supported Dr. Mussadiq’s oil policy, said to-day: “Persia is on the verge of ruin.” It criticised Dr. Mussadiq for lacking a vigorous policy. The newspaper said: “We ask Dr. Mussadiq to say clearly if he can run the oil industry, if he can refine and export oil. We want him to know that the people are tired of idle talk and official statements. They are weary of hearing from him the cleVer replies he gave the British, They want to know what he is going to do next, how and when he is going to do it.” An extreme nationalist newspaper, “Seday Vatan,” commenting on Mr Harriman’s stay in Persia, said: "Rapacious America will eventually turn Persia into a Korea.”