BRITAIN’S restraint in the handling of the Persian disagreement may soon be paying dividends, not necessarily in oil revenue, but in the recreation of goodwill, a very essential ingredient in maintaining peace in the Middle East.

GENERAL ZAHEDI [Fazlollah Zahedi] in his broadcast to the people of Persia this week declared that ex-Premier Mossadeq’s ruinous national policy had brought misery to the country. His intransigeance [sic] had cost Persia £30 million a year, and despite his boasts he had been unable to sell oil to the outside world even when he cut the price by 50 per cent.

THE position today is that the big and costly Abadan refineries have been allowed to deteriorate to such an extent that even if an agreement between Britain and Persia were signed tomorrow it would take many months and many millions to restore them to a state of productivity.

PERSIA should now realise that the World can manage without her oil. Supplies from new sources, especially from North America and Canada and even the Soviet, are adequate to meet present demands. The row with Britain brought nothing but poverty and bloodshed to the country.

WITH characteristic patience Britain elected to avoid an open breach. It would be no exaggeration to say that but for skilful and tolerant diplomacy the Middle East would have been aflame 18 months ago.

MESSAGES exchanged between Britain and Persia during the past few days give hope that mediation may lead to a resumption of peaceful relationships.

THE Free World is not so much concerned with getting Persian oil on to the market, as it is with winning back goodwill. The happiness of the people is of far greater concern than the making of money.

IF the wrinkles can be removed from the Persian carpet the gains made by the Democracies in Europe and in Asia will be consolidated.