PERSIAN OIL CRISIS

Press, Volume LXXXVII, Issue 26529, 18 September 1951, Page 7

PERSIAN OIL CRISIS

Firm Action By Mr Harriman

(N.Z. Press Association—Copyright)

(Rec. 10.30 p.m.) TEHERAN, September 17 Mr Averell Harriman, Mr Truman’s special envoy, is understood to have declined the request of the Persian Prime Minister (Dr. Mussadiq) to pass on the Persian ultimatum to the British Government.

Mr Harrimaii’s reached the American Embassy yesterday and will be officially communicated to Dr. Mussadia to-day. H

The correspondent of the “Daily Telegraph.” London, said that if news of Mr Harriman s rejection is officially confirmed it will have a most serious effect on the position of Dr Mussadiq s Government. '

“It is seen here as overshadowing even the fact that Opposition deputies have boycotted the Majlis f or the third time running.

The Abadan correspondent of the ‘‘Daily Telegraph” described the Anglo-Iranian .Oil Company's decision to stop paying 960 Persian employees as “an important new step in the rapidly developing trial of strength between Britain and Persia.” ~ Th f correspondent said that it was the first time in the oil dispute that the company had taken Persian re!L ner X» employees off the payroll and the effects were likely to make themselves increasingly felt in Abadan. ~ lf r!.!- P ersian threat to expel all tne British staff was carried out the P^- vn ? ent , the Persian staff by the Anglo-Iranian Oil Company would cease, he said.

It was earlier reported that the Persian Oil Board seized letters ready to be sent to 450 workers in Abadan informing them that they had been suspended by the Anglo-Iranian Company.

The letters of suspension told the workers: “We wish to emphasise that your employment is not terminated. During the suspension your wages will cease and you will be free to take employment elsewhere. Meanwhile, there will not be a final settlement in view of the fact that your services are suspended and not terminated.”

Simultaneously, the Anglo-Iranian Company stopped paying the 960 workers in the five refinery departments from which all the British staff has been withdrawn. A company official said: "Since the Persian Oil Board is now running these departments, the responsibility must be theirs.”

The monthly wage bill for the 960 men amounts to £60.000.