The frantic nationalism in Iran that sweeps premiers in and out to the accompaniment of gunfire and rioting is not likely to be much affected by decisions of the World Court. But now that the court has declined even to take jurisdiction over the oil dispute between Iran and the Anglo-Iranian Oil Company any slight chance of its influencing events has passed. The hopes that were raised a few days earlier that the new Premier, Ahmed Qavam, might be able to open fresh negotiations with the British, have also passed. [Ahmad Ghavam] Mr. Qavam is out, swept from office by as vicious rioting as Iran has seen since the British were expelled.

The dilemma is acute. The extreme nationalists, led by Mullah Kashani, have made it clear that any leader who tries to reintroduce British influence, however watered down, will bring down upon the country mob violence euphemistically known in Iran as “the will of the people.” But experience without the British has made it just as clear that producing and selling oil are virtually impossible for the Iranians alone, at least under present conditions.

The finances of the country are in a chaotic state. The deficit was 4,000,000,000 rials for the last fiscal year or 40 per cent of the cash outlay and continues to grow at the rate of 250,000,000 to 300,000,000 rials monthly. (The rial is now quoted at 3⅛ cents.) Many devices used to keep that deficit low are unrepeatable. Dr. Mossadegh’s proposals for raising money by new taxation, increasing the note issue, and selling the crown jewels all have a quality of desperation.

Under the circumstances one new report comes as a menacing development. That is the report that the leader of the Nationalist forces has now decided to make open and common cause with the Communist front organizations that have fattened on the anti-Western sentiment. [Which report is this?] It is the development that was seen from the beginning as one of the most dangerous consequences of the Mossadegh course. And at the moment there seems nothing in view to stop it.