One of the major reason why the United States cannot live unto itself is oil, an essential of both our expanding industrial and military strength. With its domestic sources of petroleum operating at capacity, this country is increasingly dependent on Middle Eastern and Venezuelan supplies.

The world of balance of economic and strategic power would be dangerously tipped should the nationalist extremism now rampant in Iran spread to neighboring Iraq and Saudi Arabia, where American oil companies have huge interests. This danger should direct further attention to the development of United States friendship and helpful relations with Latin American, [sic], especially toward Venezuela, which is-the largest exporting-oil country in the world. During 1950, three-fourths of Venezuelan oil went to supply import needs of the United States and other Western Hemisphere nations.

Dependent as it now is on this South American fuel supply, this country must contemplate the possibility that it will have to become enormously more so. The British in Iran are reaping an enmity for which neglect of native rights and a high-handed policy are responsible. The lesson for the United States, in its present and future relations with Latin-American peoples, is implicit.

In the 18 months since this dispute broke out, Iran has shown that it cannot handle its oil resources. The seized refinery at Abadan is as idle as an abandoned carriage factory. The Iranians have not been able to sell even the oil which was on hand when the British left. And without oil revenues the country is virtually bankrupt.