PREMIER MOSSEDEGH [sic] has once again gained shaky control over Iran’s parliament. The “old weeper,” who can and does often shed a shower of tears at the drop of a hat or a parliamentary crisis, has been suspected of turning on a crocodile flow whenever things go sour. Now he is on a spot where he may he forced to shed some real tears.

President Eisenhower has called his bluff. [Dwight D. Eisenhower] Mossadegh had timed an appeal for more U.S. funds with a conciliatory gesture toward Iran by Soviet Russia. [What was the gesture?] He thought the United States could be depended upon to meet the Soviet offer to adjust its World War II debts to Iran with an offer of more cash.

The President’s curt note that there would be no more funds available until Iran settles its oil dispute with the British sets the premier back on his heels. The President told Mossadegh that he regards the British position on the oil dispute the “reasonable” one. He suggested Iran make a move to settle the dispute.

Businessmen in Iran expect the snub to Mossadegh to be reflect in a further fall in the value of the Iranian currency. Already troubled by the debt of about $1,000,000 a month to oil workers idled by his stubborn refusal to come to terms with the British, Mossadegh will find his troubles mounting.

Any attempt to make a deal with the Russians would lead to the eventual downfall of Mossadegh’s regime. Neither the Tudeh (Communist) Party nor the Moslem leaders are in his corner. The former would welcome rapprochement with Russia, but only as a means of strengthening their own hand against the premier. The latter would welcome it as a means of unseating the man who has about exhausted his sport of making Britain the “whipping boy”.

Mossadegh’s best bet would be to come to terms with the British, get the idle Iranian oil to flowing to the markets now denied him and hope for U.S. help in the financial crisis he has evoked.

The bold position of President Eisenhower may accomplish what months of diplomacy and financial assistance have failed to do.