Another showdown with Communism is at hand, in Iran this time. It will take skillful maneuvering by Britain and the U.S. to win. And if they lose, another threat to world peace will have erupted.

As usual, Russia has more or less hidden its hand under the cloak of local interests, but its presence is fairly obvious.

Iran decided to nationalize its oil industry, which had been developed and was being operated by the Anglo-Iranian Oil company, controlled by the British government. Britain conceded this was within Iran’s rights as a sovereign power, but it didn’t want to lose its investment, its operating rights, and most importantly, its main source of petroleum.

If that were the only issue, it could have been solved readily by reasonable negotiation. Practically, it would seem to make little difference whether Britain produced the oil and paid Iran royalties, as it has been doing, or Iran produced it and sold it to Britain. But extreme Iranian nationalists wanted to expropriate the British oil holdings and kick out the foreigners entirely.

Here was a situation tailor-made to fit the Communist strategy of stimulating unrest to advance Red aims. The Russian-inspired Communist Tudeh party was the tool. It staged nationwide demonstrations against “British-American imperialism” while Russia could sit back in aloof innocence, hoping that at the least Britain might lose its vital oil supply or at the most that the Communists might finally win control of Iran and Russia could get its oil.

The U.S. state department may have averted an earlier explosion by urging caution when Britain showed signs of following its old imperialistic pattern of backing up its foreign industry with guns.

If Mr. Acheson can promote a peaceful settlement of this dispute and a stable non-Communist government in Iran, he will have performed a valuable service not only to Iran and England, but to this country as well. [Sec. of State Dean Acheson] For the U.S. has vital oil sources in the near east, too, and what happens in Iran might easily affect the whole western defense position in the Mediterranean area.

Containing Communism is getting to be a full time job for the U.S. Success is no less important on the diplomatic front than on the military.