In spurning the Truman-Churchill proposal for a settlement of the Iranian oil problem, Premier Mohammed Mossadegh has shown a consciousness of both strength and weakness: strength in his bargaining position vis-a-vis Britain and the United States; weakness in his need for the full support of Iran’s violent and fanatical nationalists, who want nothing less than whole hog. [The message from Winston Churchill and Harry Truman was dated Aug. 30th, Mossadegh responded Sept. 24th]

It would appear from the outside that the new joint proposal gave them almost whole hog, with a $10,000,000 present from this country thrown in as lagniappe. Mr. Truman and Mr. Churchill went far more than halfway in their effort to bolster Iran’s shaky finances, provide a basis for permanent settlement and allow Dr. Mossadegh to save his face.

For the British especially, the proposal represented an all but complete backing down from what heretofore has been their central argument that last year’s nationalization of the Iranian oil fields constituted a breach of contract. The British were willing to lose face themselves, severely, in the hope of bringing some order into a situation which becomes daily more dangerous. Their acceptance of the fact of nationalization should have been enough for reasonable discussion, at the least. Dr. Mossadegh has chosen not to be reasonable right now.

To give further weight to their offer, the President and the British Prime Minister made it a personal offer, directly to Dr. Mossadegh, but the latter, unimpressed, has summoned his Parliament for what is apparently to be a nonpersonal rejection. The next development in Iran is hard to predict. Dr. Mossadegh, for all his bargaining strength, is bargaining on the edge of a precipice. He cannot go on forever with a deficit running at the rate of $14,000,000 a month.

If he should fail to go on, the Communist Tudeh might seize power. Communist rule in Iran would hurt Britain and the United States. It would ruin Dr. Mossadegh.