The Persian talks have failed, Mr. Stokes has left Tehran, and the prospect of a settlement is as cheerless as ever. [Richard Stokes, British Lord Privy Seal in the Labor government]

The main hope was that Dr. Mossadeq might agree to set the Abadan refinery going again by falling in with Mr. Stokes’s proposal that the present British manager be given control for the time being. Dr. Mossadeq at first declared that he was not interested in any “temporary scheme”, what he wanted was a full settlement. Later he made a show of compromise to the extent of proposing a joint board of management made up or a British representative, a representative of the Persian Government, and an “international expert.”

This, however, was unacceptable to Mr. Stokes on the ground that the British staff were willing to work only under their own manager. The British employes have loyally obeyed instructions to “stick it out” in spite of the badgering and pinpricking to which they have been subjected by the Persian Oil Commission. To have rewarded their loyalty by handing them over to a joint board of management — which would simply have perpetuated their present condition — would have been unthinkable. In any case, the men would probably have left in a body rather than agree to Dr. Mossadeq’s proposition.

No one apparently has any further ideas for breaking the deadlock. The Persians are again telling each other that Britain is feeling the pinch more than they are and that in time she will come round and accept the inevitable. They have a truly remarkable capacity for deluding themselves. The British, for their part, appear to have been thrown back on their determination not to allow any harm to befall their employes in Abadan. There will undoubtedly be serious trouble if the Persians try to seize the refinery by force.