WASHINGTON, Aug. 19 (UP) — American officials hoped today the fall of Iranian Premier Mohammed Mossadegh would bring a stable government to that strategic country and perhaps lead to settlement of Iran’s oil dispute with Britain.

These officials awaited developments with restrained jubilance. Mossadegh has long been a thorn in the side of the Western powers who feared his government might go Communist.

Iranian Ambassador Allah-Yar Saleh [Allahyar Saleh] denounced the army forces which overthrew Mossadegh and asserted he “will not cooperate” with them.

“Any action against Mossadegh is against the people of Iran”, he said.

The State Department said it was not yet in position to reach conclusions on outcome of the coup launched by forces backing the youthful Shah Mohammed Reza Pahlevi. But it made public a report from U.S. Ambassador Loy W. Henderson at Tehran reporting a “holiday atmosphere” prevailed there.

President Eisenhower has been keeping a watchful eye on Iran. He said in a speech recently that Mossadegh was “supported by the Communist party” when he tried to oust the Iranian parliament.

Previously the President had denied Mossadegh more U.S. economic aid, warning the aged premier in effect to put his house in order if he wants further help.

The Seattle speech brought a blast from Saleh that Mr. Eisenhower had given out “inaccurate information” which he had received from “those who do not favor the continuation of good understanding between the governments of the United States and Iran.”