It has long been the contention that Premier Mossadegh has conducted his defiance of the western powers over his country’s oil to such lengths that he has seriously impaired the economic stability of Iran. This has, in turn, created areas of dissatisfaction which have provided plenty of material for political agitators seeking to stir up trouble for the government and other elements.

Another fact which has been pointed out with predictions of disaster is the manner in which Mossadegh has temporized with the Tudeh, or Communist party, a procedure which has proved disasterous [sic] in every other country in which it has been attempted.

Catering to the discontent which is almost endemic in Iran, and to dissatisfaction with Mossadegh’s economic policies, the Tudeh has gained such political strength as to render the opposition nearly impotent.

Proof of the growing importance of the Communist element in Iranian politics may be found in the signs this week that the Soviet government is now openly taking a close interest in the affairs of Iran and has made its first move to participate in the oil dispute which has been in effect between Mossadegh's government and Great Britain for several years.

In the Moscow press appeared an announcement that a “joint commission will be created at Tehran to strengthen existing friendly relations between the U.S.S.R. and Iran,” and this commission will also open negotiations to “eliminate all differences as regards finances, frontier and other problems.” [They got this from an Aug. 10th United Press wire article. The quotation began at “strengthen”, not “joint”.]

The announcement, diplomatic circles point out, is important also because it indicates that since the commission is being formed “in Tehran” there has been an agreement already concluded between Moscow and Mossadegh and the possibility is there that somewhat more than a general accord may be in the files.

It is noted that this agreement may be paving the way for full scale economic negotiations between Russia and Iran, and these negotiations will necessarily involve the output of Iran’s fabulously rich oil fields and Abadan refinery, and this fact is of considerably more than academic interest to the western world.

Certain [sic] the influence of the Tudeh has been more than has been suspected in the past few weeks, and the results of the “joint commission,” operations will be watched with extreme interest.

It has not been many years since Iran and Russia were eyeing each other with war-like glances over the attempted Soviet annexation of a border province through infiltration and semi-military measures, together with political pressures.

Premier Mossadegh, with poverty staring his people in the face and a Communist party thrusting a knife in his ribs, may well retire to his boudoir to weep this one out, because his situation is more dangerous than any he has had to face before. It is unfortunately possible that his weeping will do him and his country no good this time. The Communists have laid their groundwork well, and are getting set for the next step.

In his speech last week, Prime Minister Malenkov made quite a point of mentioning Iran as one of Russia’s neighbors, and indicated that the Soviet government is desirous of maintaining good relations with Iran. [Georgy Malenkov]

A look at Russia’s neighbors and what has happened to them will indicate just what Malenkov means, and what is in store for Iran if the “good relations” policy continues.