Uncle Sam Gets Tough With Iranian Government
July 13, 1953 — United Press [UP]

The Mossadegh Project | September 13, 2020                              



Mossadegh On Tight Rope As Premier of Iran

By PHIL NEWSOM
United Press Foreign News Editor

Relatively unnoticed in recent hectic days has been the turn of United States relations with Iran.

Obviously tired of what it considered blackmail, the United States has informed Premier Mohammed Mossadegh that Iran can expect no further economic aid from the U.S. until it settles its oil dispute with Great Britain.

President Eisenhower, in announcing his decision to Mossadegh, was taking a calculated risk. [Pres. Dwight D. Eisenhower]

For it is not impossible that Iran could go Communist.

The Iranian oil pool is rated the largest in the world. It formerly was controlled by the Anglo-Iranian Oil Company, under lease from the Iranian government. Anglo-Iranian, a billion-dollar concern poured about $100,000,000 annually into the Iranian economy.

However, after a series of nationalist and Communist-led strikes early in 1951, the Iranian parliament voted to nationalize the oil fields. Since then the situation has gone from stalemate to stalemate and the Iranian economy practically to zero.

The United States has expended both vast patience and money in attempting to maintain Iran against the encroachments of Communism and to mediate the dispute between Iran and Britain.

Included in U.S. aid has been a $25,000,000 Export-Import Bank loan in 1950, $47,000,000 in Point Four aid for development of backward areas and an unspecified amount of military equipment.

Last May, Mossadegh demanded further assistance, with the threat that if it were not granted “serious international consequences” could result.

Now the United States has put him on the spot.

At home, Mossadegh is in a battle with the young shah, primarily as result of the latter’s program to give land to the peasants.

He also is in a battle with the Iranian Majlis (parliament) over his increasing demands for dictatorial powers, including control of the army.

Opposing him in parliament is his former close associate, Ayatollah Sayed Kashani, Iran’s most powerful Moslem leader, who in the past has not hesitated at assassination to gain his ends. [Ayatollah Seyed Abolghasem Kashani]

Thus Mossadegh walks a tight rope.

On the one hand is his burning hatred for Britain which prevents him from reaching a workable compromise in the oil dispute. On the other is Iran’s failing economy and the increasing strength of his enemies at home.

One guess now is that Mossadegh actually may try to make a deal with Russia.

Russia has been making conciliatory gestures lately, including indications that she might be willing to talk over border disputes, return gold blocked by the Soviet National Bank since World War II, and give up the 1921 treaty giving Russian troops the right to occupy Iran if Russia thought her security threatened.

Politically, any deal with Russia would be a tough one for Mossadegh to swallow. But he must get off his tight rope soon.


Alternate headlines:

IRAN GIVEN LAST WARNING
Mossy Still Walking Tightrope
Mossadegh On Tight Rope As Premier of Iran
Mossadegh on Spot as U.S. Demands End of Dispute
Eisenhower Quits Playing Santa To Iran; Requests Smack of Blackmail
U.S. Attitude Toward Iran Firm Despite Risk of Turn to Communism
Iran Must Settle Oil Dispute To Receive More U.S. Help
Calculated Risk Taken in Halting U.S. Aid to Iran — Mossadegh, Facing Increased Opposition, May Turn to Russia




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Related links:

Juggler On A Tight Rope | The Advertiser, August 25, 1952

United States Believes Iran Is Heading Toward Disaster | Phil Newsom (UP), Aug. 11, 195

Pres. Eisenhower’s Final Reply To Premier Mossadegh | June 29, 1953



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