PERSIA AND BRITAIN

Press, Volume LXXXVIII, Issue 26857, 9 October 1952, Page 9

PERSIA AND BRITAIN

Changed Attitude Of Dr. Mussadiq (N.Z. Press Association—Copyright) LONDON, October 7. The Persian -Prime Minister (Dr. Mussadiq) today dropped his threat to sever diplomatic relations with Britain, and prepared an offer to resume negotiations with London for a settlement on the oil dispute, says a United Press report from Teheran. The correspondent quotes authorative sources as saying that Dr. Mussadiq was preparing Notes for delivery later this week to Britain and the United States expressing Persia’s appreciation of the goodwill shown him and declaring Persia's willingness to reopen the oil talks. Informants said that Dr. Mussadiq had decided to thank Britain and the United States for their recognition of Persia’s rights to nationalise her oil industry, to have independent management of the oil fields and installations and to sell products to any customer desired.

They said that the Persian replies also would declare Persia’s readiness to investigate the compensation claims of the Anglo-Iranian Oil Company for losses suffered in nationalisation, and requests a similar investigation of Persia's counter-claims. However, Persia would still want the company to pay £49.000.000 under the 1949 contract signed, but never ratified by Persia. The Persian reply to the British and American Notes urging Dr. Mussadiq to reconsider the Churchill-Truman proposals for a settlement of the oil dispute was handed to the British and American envoys in Teheran today. It is reported to be favourable. A Persian Government official said that Dr. Mussadiq would invite a British delegation to Teheran. He said that Dr. Mussadiq’s anti-British attitude has softened considerably in the last 24 hours. Dr. Mussadiq now believed that Persia had won the political war, and that it was now time to iron out economic questions. Before handing the reply to the British and American envoys. Dr. Mussadiq talked with the Shah for three hours. The Shah was later reported to be “very happy’’ at the change in Dr. Mussadiq’s views, and that instead of breaking with Britain he intended to start a new era of cooperation.