Iran has come full circle from the demagoguery and fanatic nationalism of a few years ago and has benefited markedly.

When Mohammed Mossadegh was premier, Iran nationalized the Anglo-American Oil Company with disastrous results. [Anglo-Iranian Oil Company] Then, as a face-saving gesture, an international consortium of oil companies took over management of the nationalized oil company, and oil revenues have again been flowing into the national treasury.

Iran joined the Baghdad Pact and established friendly but independent relations with the West. The Iranian people have benefited. Extensive land reform has been undertaken. Public health has advanced. Endemic malaria, a debilitating scourge which saps the productive vitality of farmers and workers, has been practically eliminated. Vigorous attacks have been made on opium addiction and tuberculosis. A national civil service law is reported to have reduced corruption and patronage in politics.

An ambitious billion-dollar seven-year plan of development—plans for which were halted while Mossadegh proclaimed nationalization of foreign companies as the way to prosperity—is under way.

And now Iran has taken another significant step. She is inviting foreign capital, scared off by nationalization, to return and help develop the country. She offers safeguards against the sort of abrupt and reckless nationalization which is unfair to foreign capital, plus incentives for investors.

She wants help especially in developing her oil discovery program faster than is possible under doctrinaire nationalization, in order to gain revenue to push the seven-year plan and lift the condition of her people. Iran has learned that nationalization is no panacea and that foreign capital can be a benefactor instead of an exploiter.