3. Iranian Prime Minister desires to avoid Security Council consideration of oil dispute.

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Prime Minister Mossadeq prefers to settle the British-Iranian oil dispute by prior negotiations and to avoid Security Council action. Mossadeq expressed this sentiment in an interview with Assistant Secretary of State McGhee and US United Nations delegates, and added that the strong statement which he must make in the Security Council would preclude successful negotiations. [George McGhee] Therefore he suggested a delay during which an agreement could be sought.

Comment: There is no reason to assume that Mossadeq is willing to negotiate on terms more favorable to the British than those previously offered. Resumption of negotiations, however, might avoid the dilemma of an Iranian refusal to comply with a UN recommendation. The USSR would similarily [sic] not be given the opportunity of posing in the UN as the champion of Iran.