TEHRAN, June 29 — (INS) — The tense situation arising from nationalization of the Anglo-Iranian Oil Company appeared eased today when the U.S. envoy to Tehran persuaded the government to abandon an “anti-sabotage” law endangering the lives of 2,000 British employes.

U.S. Ambassador Henry F. Grady announced that Premier Mohammed Mossadegh agreed to drop the proposed legislation. The American envoy is interceding with the British government for the return to work of the 2,000 technicians who walked off their jobs yesterday.

The proposed law would have provided penalties up to death for any interference with nationalization. Mossadegh had placed in this category the refusal of AIOC employes and tanker captains to acknowledge oil receipts which identified petroleum as sole property of the nationalized Iranian Oil Company. [National Iranian Oil Company]

Meanwhile, twenty thousand Communists demonstrated in Tehran today against what they called American interference in Iranian affairs.

The demonstrators shouted “Down with Truman!” and “Down With Grady!”

British Defense Minister Emanuel Shinwell, on his arrival in Paris for a conference with Gen. Dwight D. Eisenhower, emphasized the firmness of Britain’s attitude in the dispute. “We have made our decision,” he said, “and we British don’t give up easily ... I believe that sanity will prevail.”

The general picture improved when aged and ailing Mossadegh saw Grady in a new personal meeting in which the envoy expressed the hope for some compromise solution that will permit continued AIOC operations for from 60 to 90 days more at least.

Summarized, the situation stands as follows:

1. The anti-sabotage law has been dropped for the present.

2. Great Britain will not close down the Abadan refineries as previously reported while there is any hope of a settlement.

3. Mossadegh stands on his contention that receipts must be acknowledged in the name of the nationalized oil company only.

4. President Truman is expected to send a message to Mossadegh in reply to the Iranian Premier’s letter asking for continued friendship of the U.S. in the disputes.

5. Mossadegh claims that the anti-sabotage law actually was directed against the Communists and has reiterated his desire to see a continued flow of oil to the west.

Following his latest meeting with Mossadegh, Grady said:

“The Premier took the position that the AIOC has been nationalized, and that all property of the oil company belongs to the Iranian government.”

“He maintains that no one is entitled to sell oil except the government company. I told him it was so important to keep the plant going, that I hoped he would authorize his people to work out something with the AIOC for at least 60 to 90 days.”

There was one slight outbreak of violence today at Shiraz south of Abadan when a crowd attacked a British bank and smashed windows. Local police dispersed the mob and promised they would not permit a recurrence of disorder.