The dilemma in which the United States and Britain find themselves with respect to Iran and Premier Mossadegh is sharpening, and there may not be too much time in which to resolve it.

Whether Britain, because of its direct interest, and the United States because of its indirect but almost equally potent interest, are to be forced to come to the financial aid of Dr. Mossadegh’s government in order to prevent a Communist coup which would extend Soviet power to the Persian Gulf is a question to which ready answers still are lacking.

The chain of events which brought the situation about stems from the difficulties between the Mossadegh nationalists and the Anglo-Iranian Oil Company, the principal interest in which is owned by the British government. Dissatisfied with its royalties from the rich Iranian oil operation, the Iranian government nationalized the industry and kicked the British out of the country. Without access to petroleum technicians, tanker fleets and world markets, and with royalty payments cut off, Iran has veered toward national bankruptcy. Efforts to negotiate the controversy have got nowhere and Dr. Mossadegh, who resigned, has been returned to power seemingly as strong as ever and as stubborn.

If Britain and the Anglo-Iranian company knuckle under and meet Dr. Mossadegh’s terms, the foreign investments of the entire international oil business will be in jeopardy. But if the Mossadegh government does not receive financial assistance from some source and some adjustment of the oil controversy national bankruptcy will be inevitable and in the following political turmoil a seizure of power by the Communist Tudeh Party would be likely. That would, in effect, present Iran to the Russians with its oil resources, its outlet to warm water and its commanding strategic position in the Middle East. Military intervention in Iran to prevent such a circumstance would be an enormous risk by reason of the 1921 Iranian-Russian treaty allowing the Soviet Union the right of interference in event of a foreign threat to Iran, and could touch off world war.

Dr. Mossadegh, therefore, it must be admitted, seems to have the West over an oil barrel. He has gambled almost irresponsibly with the safety of his country and what he now is attempting is little short of blackmail. But it may have to be paid, at least in part. Dr. Mossadegh holds a bomb, and seems to be capable of blowing everybody up unless he is relieved of it gently.