When Premier Mossadegh of Iran nationalized the country’s oil industry the inevitable consequences of the act were pretty much obscured by national sentiment to “throw the British out.” As economic catastrophe threatens, some members of Parliament, who voted for “recapture” of the nation’s oil, have come to their senses.

In a formal statement, 16 members of Iran’s governing body have accused the premier of alienating Great Britain and the United States by his stubbornness in refusing to negotiate a settlement of the dispute. [false] More important from the standpoint of the elected members of the Majlis (parliament), nationalization failed to bring “riches” to the people of Iran as Mossadegh faithfully promised when he was pushing the law through the assembly.

Instead of a better life for the people, Iran now faces chaos and bankruptcy. Mossadegh was bluffing throughout the conferences with representatives of the British Government and the Anglo-Iranian Oil Company, a fact that was recognized from the outset. He had plenty of chances to save face when W. Averell Harriman, special envoy from President Truman, devised a solution which would give Iran 50% of oil profits but he rejected them all. [Not quite. As George McGhee later acknowledged, the real purpose of Harriman’s visit was to circumvent the nationalization law and restore AIOC’s position.] Many Iranian legislators saw the handwriting on the wall but were fearful of stating their objections publicly in the face of the overwhelming pressure to have done with British exploitation. Now the opposition has come into the open.

The British have made it clear they are fed up with the amateurish and hysterical attitude of Mossadegh. His ultimatum, which demands that they reopen negotiations on Iran’s terms within two weeks, is flatly turned down. They have tacitly let it be known that if settlement talks are to be revived, the Iranians must throw [about 7-8 illegible words] ... someone who can not only speak for Iran but be reasonable when doing so.

To emphasize their determination not to have further dealings with the psychopathic premier, the British have struck another body blow at Iran’s shaky economy. They have withdrawn financing and trading facilities including the right to convert pounds sterling into dollar exchange and the right to make payment in sterling for materials bought in the countries where it is an acceptable medium of exchange. In addition, Iran is prohibited from buying short supply items in the British market even if they manage to dig up the money to do so. The British action is an open application of economic sanctions against Iran—even though it is not so described in London. As Iran’s treasury nears depletion, the British are leading from strength.

Nobody denies that the British exploited Iran shamefully for half a century; that they gave the Iranian people a dirty deal in cutting them in for a miserly share of profits from the country’s prime natural resource. But that is in the past. The inescapable facts of the present—an empty treasury, a starving people and a chaotic government—demand new Iranian leadership and an oil deal with Britain that will restore economic and political health to the country.