The new government in Iran gives indications that it will apply reason in its foreign relations. At home it is keeping order, even giving a pledge to Mossadegh (who is as bald as a billiard ball) that not a hair of his head will he harmed.

It isn’t likely, of course, that Iran will escape overnight from the financial quagmire into which twenty-eight months of the irresponsible actions of former Premier Mossadegh have bogged it, for the new Premier Fozollah Zahedi [sic—Fazlollah Zahedi] has revealed that the nation is $210,000,000 in debt. For this reason we feel that no delay should he practiced in attempting to grant the economically stricken country the financial aid it asks.

It was Mossadegh’s ridiculous antics which, of course, are responsible for this state of affairs. For the country’s treasury has been deprived at the least of the $210,000,000 by the cutting off of the oil revenues. Iran needs immediate cash if it is to survive. The United States advanced Mossadegh many months ago $49,000,000. Despite this, however, the only immediate source of ready money is again the United States.

Talks are currently going on in Tehran with Loy Henderson, the American ambassador. Britain, however, objects to so swift a grant. This, they contend, will delay settlement of the oil issue. The Zahedi government is just as nationalistic as Mossadegh’s, the British maintain. Even so, it has manifested already that it is much more aware of the facts of international life.

Whether the United States, which has been acting more or less as a friendly middleman in the Anglo-Iranian dispute, will heed the objection remains to be seen. But neither London nor Washington should forget that financial stringency could yet drive Iran toward Russia. One of Russia’s diplomats in Tehran tried to commit suicide when the Mossadegh coup failed. [referring to a rumor about Soviet Ambassador Anatoly Lavrentiev]

A settlement of the oil argument is possible, however, even with Zahedi as premier. His anti-British feeling will not be allowed to interfere with the needs of the country. He has said that he harbors no resentment for his arrest and internment for three years by the British during the war because of his pro-Nazi sentiments. But even if Zahedi has buried these, he cannot immediately fly in the face of the potent anti-foreignism of the country.

The evidence of the case indicates that a compromise should be reached without delay.