Tehran (INS) — Iran held its army and navy forces in readiness today to quell any communist disorders during scheduled mass demonstrations over the Anglo-Iranian oil dispute.

Armored cars were placed in strategic positions throughout the city of Tehran and all army leaves of forces stationed in the capital were cancelled.

The army garrison at Ahwaz, capital of Khouzistan Province, reportedly was alerted. [Khuzestan]

Iranian warships in the Persian Gulf were said to have been ordered to stand by off the oil rich southern Abadan region following reports that communists planned to stir up trouble there.

The demonstrations inspired by the illegal communist Tudeh party are being staged on the 18th anniversary of the agreement between Iran and the British-controlled Anglo-Iranian Oil Co. to operate the Abadan fields until 1993. [1933 Agreement under Reza Shah]

They are taking place at a moment when Iranian officials appear inclined to relax their original stiffness in regard to British demands for negotiation of the dispute.

The Iran government already has appointed a six-man committee to study the British complaint to the International Court at the Hague requesting arbitration. Iran had declared originally that it did not consider the International Court competent to arbitrate the dispute.

Now there is talk that Iran may go far as to lodge a counter petition at the Hague.

(While the British continued to press for negotiations, Foreign Secretary Herbert Morrison was scheduled to go before the House of Commons later in the day to receive an interim report on the entire situation).

Another sign of possible Iranian willingness to negotiate terms came with a call by Premier Mohammed Mossadegh to U.S. Ambassador Henry F. Grady to attempt to “save this situation.”

When Grady visited the premier Monday, Mossadegh voiced a willingness to talk over the dispute with a British government official if that official is a member of the oil company’s board of directors. [AIOC]