Sixteen days in Iran have convinced Herbert Hoover Jr., State Department consultant, of the “sincere desire” of Government officials “to find a dignified and constructive approach to the problem of Iranian oil.” Inasmuch as Mr. Hoover now is scheduled to confer with British officials in an effort to promote settlement of the oil dispute, his Iranian impressions provide new hope for success.

“Sincere desire” to solve the oil problem is something new in Iran. It took a political upheaval to throw out stubborn old Premier Mohammed Mossadegh, author of the disastrous oil nationalization policy, and put in a Government capable of practical considerations.

Iran has been virtually bankrupt since Dr. Mossadegh forced the Anglo-Iranian Oil Co. [AIOC] out of business, a move resulting in the closing down of the world’s largest refinery at Abadan. Inasmuch as oil is Iran’s greatest natural resource and greatest source of income, the Mossadegh policy amounted to a form of national financial suicide.

Since the Government of Premier Fazollah Zahedi took over, the situation has improved somewhat. [sic—Fazlollah Zahedi] The United States authorized a grant of $45,000,000, which is expected to keep Iran going until spring.

The big idea, however, is to arrive at a compromise which will satisfy the claims of the Anglo-Iranian Oil Co. and put Iran back on her own financial feet as an oil producer. If Mr. Hoover is instrumental in engineering such a compromise, the result will be a three-way benefit—to Britain, to Iran and, last but important, the American taxpayer.