OIL INDUSTRY OF PERSIA

Press, Volume LXXXIX, Issue 27206, 25 November 1953, Page 11

OIL INDUSTRY OF PERSIA

Britain To Accept Nationalisation

(N.Z. Press Association—Copyright) LONDON, November 23.

Britain is ready to accept Persia’s nationalisation- of the vast AngloIranian Oil Company’s industry there provided the company is compensated for its loss, says Reuter’s diplomatic correspondent.

The poverty of the Persian nation is understood in London and there is much sympathy for General Zahedi’s inheritance, but Britain is anxious not to set a precedent by waiving her claims to compensation. Other oilrich countries might follow Persia’s example in ending foreign concessions, it is felt.

The United States, which has played a leading role in trying to reconcile the British and Persian attitudes, supports Britain’s desire to resume diplomatic relations before tackling the oil problem, but in preparation for the time when London and Teheran start direct negotiations the United States Secretary of State (Mr John Foster Dulles) is working on a plan on which a settlement could be based. One of the main difficulties which will confront future negotiators bn the oil problem is that the loss of Persian supplies to world markets has been more than made up from other oil centres.

It is appreciated both in London and Washington, however, that room must be made for Persian oil if the country’s economic plight is not to deteriorate further and open the way to Communist influence in Teheran.