Oil Nationalization

Report Outline
Iran, Petroleum, and the Great Powers
Private Control of Foreign Oil Resources
Spread of Movement to Nationalize Oil
Special Focus

Iran, Petroleum, and the Great Powers

New Efforts to Achieve Settlement of Oil Dispute

Failure of the Security Council of the United Nations to take action in the controversy between Great Britain and Iran over nationalization of the Iranian oil industry appeared to leave that Middle Eastern conflict as far from settlement as ever. The Council simply postponed debate on the question, Oct. 19, until the International Court of Justice has ruled on its own competence to act in the case. But Iran's continuing refusal to concede that either the Court or the Council has jurisdiction interposes a block to solution through the international organs to which Britain appealed.

However, the United States, which made an attempt at mediation last summer, has not given up hope of bringing about resumption of direct negotiations between the parties to the dispute. When Premier Mossadegh came to Washington on Oct. 23, he participated in a long luncheon conference at Blair House with President Truman, Secretary of State Acheson, Secretary of Defense Lovett, and other American officials. A State Department spokesman said afterward: “We are trying to get negotiations resumed. We are exploring every avenue and leaving no stone unturned.”

At succeeding Washington conferences, United States and Iranian officials were believed to be examining the possibility of setting up a new international company operating under arrangements with the Iranian government, or an Iranian company under the chairmanship of a non-British foreign oil man, to take over production and refining in Iran. The plan would call also for creation of a new marketing organization to act abroad in behalf of the dispossessed Anglo-Iranian Oil Co., which might continue to operate its extensive transport and sales facilities for distribution of Iranian oil.