PERSIAN OIL DISPUTE

Press, Volume LXXXIX, Issue 27212, 2 December 1953, Page 11

PERSIAN OIL DISPUTE

Chance Seen Of Settlement (Special Correspondent N.Z.P.A.) (Rec. 10 p.m.) LONDON, December 1. Latest developments suggest that the Persian oil question may soon be settled. Diplomatic relations will soon he resumed between Britain and Persia, and oil talks will begin directly between the two countries, say diplomatic correspondents. Persia’s economic position is not now as weak as has sometimes been suggested, it is claimed. With American aid she has begun to pay her way abroad to such an extent that her currency has become the hardest in the Middle East. By drastically cutting down her imports and improving the sales of other products to replace the lost oil income she has also begun to increase foreign currency reserves. Discussing Persia’s economy, the “Recorder” says that her position in the oil world is still deteriorating. “Not only will it take several months to achieve the oil flow of more than 30.000.000 tons which was reached annually before the seizure of the AngloIranian Company’s installations, but there have been signs that the world can manage without Persian oil indefinitely. Elsewhere in the Middle East production is reported to be making striking progress. “Russia Selling Oil” ‘‘Russia and her satellites have started to sell oil overseas, notably to the Argentine, and they have undercut some traditional suppliers. “In the United States oil production has' been cut back in some instances, but this is largely a local phenomenon. The world as a whole is still demanding more oil, although the rate of increase is slowing down temporarily. Persia wants to sell oil again since it is her largest national resource.”

The diplomatic correspondent of the “Daily Telegraph” says that the Foreign Secretary (Mr Eden) is trying to secure an exchange of ambassadors, so that direct negotiations can be carried out without a third party. The “Manchester Guardian” says that there is a fair chance of relations being resumed quite soon. “It may be doubtful how much the AngloIranian Oil Company will recover in any settlement that is made, but the resumption of oil exports on a large scale is bound to have important repercussion«? on the world oil market.

“One gathers from Washington that the State Department is most anxious to see the oil deadlock broken before the emergency aid of 45.000.000 dollars granted to Persia by Mr Eisenhower runs out, which presumably will be by March or April. “The point is that the United States Government would find it difficult to extend further aid, although it could easily advance substantial amounts secured on future oil exports if a settlement had been reached.”