Dr. Mossadeq’s downfall was an unpleasant shock for the Russians. They were beginning to get on unusually friendly terms with the Prime Minister and to hope, no doubt, that the oil concession which they have been seeking so long was just over the horizon. [fake news]

Now they are having to watch General Zahedi accept promptly an American loan of $45m. as a condition of his agreeing to start talks with the British Government for a resumption of diplomatic relations and a settlement of the oil dispute. [The new Premier, Fazlollah Zahedi]

Russia may regard this as being all very “sinister,” but it is welcome news elsewhere. Persia has paid a very heavy price for the luxury of expelling the British oil interests: She has found that Britain and the world generally have been able to get along quite well without Persian oil while her own Treasury has become as bare as Mother Hubbard’s cupboard.

Nevertheless, Britain is, of course, anxious to end the dispute. Her terms are believed to be very much the same as those which were suggested to Dr. Mossadeq 12 months ago.

General Zahedi is believed to be in broad agreement with the British proposals, and it is possible therefore to foresee an end being put to the dispute within the next few months. The most serious cause for doubt is whether he commands sufficient support to be able to quieten the uproar which will assuredly be forthcoming; from the Mossadeq forces and this Communists.