Tehran, May 28 (INS) — A powerful Nationalist leader warned Britain Monday his followers may put the torch to Iran’s rich southern oil fields in an “independence sacrifice” that may bring war, and Premier Mossadegh appealed to the United States to “save the situation.”

Dr. Muzzafar Baquai, “mastermind” of the National Front movement, threatened to destroy the oil fields unless Britain gives up its oil concession as these rapid-fire developments shortened the fuse on the Iranian powder keg:

1—The government ordered the application of customs duty to imports of the British-controlled Anglo-Iranian Oil Company, which Iran is intent on nationalizing.

2—Premier Mossadegh threatened further sanctions against the billion-dollar company unless it met Iran’s nationalization terms.

3—Iran informed the International Court at The Hague it does not consider it competent to arbitrate the nationalization dispute as Britain has requested.

4—Tehran newspapers predicted a wave of cabinet resignations will bring downfall of the Mossadegh regime.

5—Armored cars and tanks were alerted for possible trouble Tuesday when the Communist Tudeh Party is scheduled to stage mass anti-British demonstrations in various parts of the country. Army leaves in Tehran are being cancelled for the day, Iranian warships in the Persian Gulf were alerted for possible Communist disorders in the Abadan oil fields, and the Army garrison in Ahwaz, capital of Khouzistan, was also alerted. [Khuzestan]

The dramatic threat to destroy the southern oil fields—Iran’s chief source of revenue—was made by Doctor Baquai during an exclusive interview.

The soft-spoken Doctor Baquai is the man considered chiefly responsible for Iran’s firm stand against the British and is said to be capable of massing 100,000 fanatical Iranians in the streets of Teheran any time he gives the signal.

Dr. Baquai conceded the tension-laden fight over oil nationalization could transform strategic Iran into “another Korea” through Soviet military intervention.

In the course of a 2½ hour interview, he said:

“We are passionately determined to eradicate the evil British influence in our land. If the British refuse to get out we will destroy the oil fields.

If that brings British military intervention, I believe Russia will emulate American action in Korea and Soviet armies will enter Iran as the United Nations forces did in Korea to resist aggression.”

Doctor Baquai accused United States diplomacy of acting as a “tool of British imperialism” and said Iran will flatly reject the United States’ advice to negotiate with Britain—advice that was repeated by United States Ambassador Henry F. Grady to the Premier today.

“For fifty years British influence has corrupted our nation and condemned our people to poverty-stricken misery in order to keep them subdued and secure cheap labor. We are going to get rid of that influence and are prepared if necessary to sacrifice our lives and our oil fields to do so. We are fighting for independence.”

Grady, renewing his appeal for negotiations with the British in an interview with Premier Mossadegh, warned Iran’s present course of shunning arbitration “is moving in the direction of disaster.”

Grady, received by the Premier in his heavily-guarded “assassination proof” suite in the parliament building, warned any attempt to interfere with the operations of the Anglo-Iranian Oil Co. would lead to disintegration of Iran’s vital oil industry.

The Premier, appearing nervous and distraught, expressed his willingness to discuss the dispute with a British government official provided that official is a member of the company’s board of directors.

Grady later was understood to have urged the British Ambassador in Teheran [Francis Shepherd] to recommend that London dispatch a high official to the Iranian capital for possible talks with the Iranians.

Mossadegh told Grady:

“You will be the light of the world if you can save this situation.”