The importance of the recent British-Iran oil settlement dispute from the standpoint of world affairs should not be overlooked.

Iran almost fell into the hands of the Communists three years ago but now comes back to a position of honor and some strength in the free world. When the extreme nationalists of Iran revolted against British control of the oil fields, Britain moved up her warships and for a time considered protection of her contract rights by force. But Britain feared Russia might invoke an old treaty giving her the right to intervene against foreign forces in Iran.

The British got out. Then the Communists got busy and played an important role in the ability of former Premier Mossadegh, now in jail, to defy the British in the face of a crumbling economy. Russia was in a position to take over at almost any time. But the world grapevine told her she could not have the ancient state with its oil wealth without a fight.

Russia’s failure to move in on Iran at the time strongly indicated Moscow was not ready for war. The Iranian oil settlement reimburses Britain for its losses without putting that nation in the role of an exploiter.

The settlement is largely a victory for American maneuvering. Herbert Hoover Jr., representing the U.S. State Department, was a prime mover in bringing about an agreement. Thus Iran has been saved for the free world. Her rich oil will flow again. The chances for an eventual Middle East Defense arrangement are much improved.