Premier Mossadegh’s breaking off of diplomatic relations with Britain will make more difficult the settlement of the dispute arising over the nationalization of the Anglo-Iranian Oil Co., if not obviate settlement altogether.

THE IRANIAN PREMIER previously had accepted the Truman-Churchill proposal for submission of the dispute to the International Court of Justice. But he had made his acceptance conditional upon Britain’s surrender of legal rights and on advance payment of $137,200,000 in so-called reparations. At the same time there would be a free hand for himself in the matter of compensation for the expropriated oil properties.

Mossadegh uses the threat of suicide of his country as a form of blackmail to bring a settlement with the West at his terms. From the beginning of the long oil dispute the unknown factor in it has been the volatile personality of the frail and lachrymose Mossadegh. He made the dispute with Britain so much his private affair that despite illness in October, 1951, he flew to New York to tell the UN Security Council it had no jurisdiction in the British-Iranian question.

MOSSADEGH THEN WENT to Washington (staying at Walter Reed Hospital) to talk with President Truman and State Department officials. The conferences were of no avail. Washington turned down, and Mossadegh at last on March 27 dropped, a request for an “immediate” $120,000,000 loan to relieve the Iranian financial crisis. Meanwhile, on Jan. 5, Mossadegh and the U.S. ambassador had reached an agreement under which Iran was to receive $23,000,000 in Point 4 aid this year. U.S. military aid was held up because of Mossadegh’s refusal to commit Iran with the West in event of world war.

In times past there has been debate over whether Mossadegh is fanatic or strategist. His latest action suggests hysterical fanaticism. The present Truman-Churchill proposal at issue is a modification of one Mossadegh rejected out of hand last August.