APPARENTLY, the Persians still believe in the Magic Carpet of nursery-time fame. Or, do they?

The query is postulated because the skein of diplomatic negotiation between Premier Mossadeq and British representatives is so tangled with local intrigue that it is difficult to determine where the ends lie.

PERSIA’S rejection of all Britain’s efforts to find a solution is inconsistent with what the Shah’s spokesmen would have us believe would be the position arising from breakdown of negotiations.

THE oil lands of Iran are owned by groups which would stand to lose everything by the intrusion of Communism. Yet, the threat is constantly held out that unless Britain capitulates to Persia’s impossible demands there will be no oil for the Commonwealth.

PREMIER Mossadeq has claimed the right of his country to nationalise its oil industry. Britain has conceded that right, and all she asks is that adequate condensation be paid for the £500 million invested in the industry and that vital supplies for the Commonwealth be assured by the appointment of a British manager. Too much is at stake to permit of this vast undertaking being placed at the mercy of inexperienced nationals.

PERSIA could not work the oilfields and distribute the product without the advice and assistance of outsiders. It is natural that Britain should be apprehensive regarding the possible source of outside assistance. The Americans are tied up in Iraq, which means that only the Soviet is left as a possible supply source for technicians and scientists.

WE can feel no security in such a possibility. The Russians have oil, and their interest in Persia can only be to seal up supplies urgently needed by the Democracies.

BRITAIN faces the alternatives of getting out of Persia or defending her interests by armed force. The arrival of three more warships in the troubled area indicates that she has made her decision, and will abide by the consequences.