MOSSADEQ continues to show himself as a tough negotiator. In his reply to the proposals put forward on August 30 by Mr. Truman and Mr. Churchill for the settlement of the oil dispute, the Persian Prime Minister expresses willingness to submit the case to the judgment of the International Court at The Hague, provided that four conditions are agreed to in advance. The fourth of these conditions, calling for an immediate payment of £49,000,000 to Persia, is not, it may safely be assumed, the one that offers the greatest obstacle to an agreement, but rather those demands which, according to London, would rule out any claim by the Anglo-Iranian Oil Company for compensation for goodwill, and place what are regarded as new obligations on that concern.

The Prime Minister’s imposition of a ten-day limit for the consideration of his Note does not appear to have improved the prospects of its acceptance. Though little comment has so far come from the United States, and no information is yet available concerning the decision, if any, taken by the British Cabinet yesterday, enough has already been said to indicate a highly critical attitude in London. For instance , one commentator remarks that to agree with Dr. Mossadeq’s proposals as they stand would be to give away the last shreds of what has been the British case throughout.

Outright rejection of the terms is, however, unlikely. Much will depend upon how firmly America is prepared to stand on the joint communication of August 30. An attempt will probably be made to induce the Persian leader to come closer to the Truman-Churchill plan.