Shah Mohammed Reza Pahlevi of Iran admits that his country is practically broke and is willing to accept aid from any source but, he makes it clear, Iran will not make concessions.

The “no concession” reference is taken to mean that Iran is going to hold on to its oil and will not make an agreement for financial aid that involves changing the nation’s present stand with regard to Great Britain and Iranian oil.

Gen. Eazollah Zahedi, [sic—Fazlollah Zahedi] Iran’s premier, says Iran is not a beggar but there are indications in the Shah’s and the premier’s statements that financial aid must be received if the new royalist regime is to withstand any attacks from the Communist-supported Tudeh party which favored the deposed Premier Mossadegh.

Iran’s stand on Great Britain and Iranian oil is likely to have considerable bearing on any aid coming from the bearing States. President Eisenhower has congratulated the Shah on his regaining control but did not say anything about U.S. financial support.

At the same time this country does not want Iran and Iranian oil to fall into the hands of the Communists. If the Tudeh party should gain control a contract might be made for Russia to get the oil.

The Shah does not want the Communists to get control and it is possible that he may be willing to reconsider some offer by which Iranian oil can support the government. Being poor while being proud could force reconsideration of Iran’s problems if Uncle Sam’s help is badly needed.