Tiny Tiger

In his youth a wild-riding cavalryman, Persia's self-made "King of Kings," Reza Shah Pahlevi, who seized the Throne in 1925, is now the horsiest of ruling monarchs. Last week he left a crisis to attend a horse race. While frightened Persian ministers wrung their hands in Teheran, the Shah rode out of his capital and over the Elburz Mountains to see a show he never misses, the annual contest of swift, sleek Turkoman steeds in his native province, Mazanderan. Despising effete blue ribbons, scorning silver loving cups, the "King of Kings" rewarded winning riders with handfuls of big, soft gold pieces stamped with his hard, sharp profile.

Meanwhile in London the British Government, majority stockholder of Anglo-Persian Oil Co. Ltd., whose concession the Shah has canceled (TiME, Dec. 12), declared last week that Persia's note on this subject was "so offensive'' that it could not be published. The note charged, according to Persians in the know, that for more than 30 years Britons have exploited Persian Oil lands "in a manner grossly unfair to Persia." Though the original D'Arcy concession (now Anglo-Persian's) was signed in 1901, no oil royalties were paid to Persia until 1914 when only $45,000 was paid, according to the Persian note, and during the War payments were again suspended, being resumed only after the Armistice. Challenging Anglo-Persian's bookkeeping methods, the Persian note alleged that on the agreed royalty basis of 16% the Persian Government should have received a total payment three times greater than it has received.

In the House of Commons crusty Tories raised a cheer when Under Secretary for Foreign Affairs Captain Anthony Eden boomed that "His Majesty's Government would not hesitate, in case of necessity, to take all legitimate measures to protect its vital interests." In Teheran the arrival of Britain's words--via British Wireless News Agency--caused such official consternation that Persian newspapers were forbidden to print them and special couriers were rushed off to Reza Shah Pahlevi who was still in Mazanderan applauding superb Turkoman horseflesh and horsemanship.

Riding back next day over the Elburz Mountains, the "King of Kings" forged ahead of his suite, who found a snowstorm in Firuzkuh Pass too much for them. Pushing on to Teheran with a small picked escort Reza Shah Pahlevi stamped into his Palace, ordered every Persian newspaper to print what had been suppressed. To Britons it seemed impossible that the horsy Persian would act thus unless he had potent backing. Whose? The London Press bristled with rumors that representatives of J. P. Morgan & Co., General Motors, Goodyear and Firestone were in Teheran dickering to form a $2,000,000 "Persian-American Corp." Britons heard that this "American consortium" would "buy Persian products for American consumption" and "undertake a general program of industrialization for Persia." In Manhattan a Morgan partner flatly said that he "knew of no basis" for such reports, but by that time the House of Commons was seething over a so-called British ultimatum to Persia.

Amid Tory cries of "Hear! Hear!" Captain Anthony Eden rose again to say that if Persia did not reinstate Anglo-Persian's concession by Dec. 15, then, "We will have no alternative but to refer this dispute to the Permanent Court of International Justice at The Hague as a matter of urgency."

"The British Government," continued Captain Eden amid fresh cheers, "will hold the Persian Government directly responsible for any damage or interference with the Anglo-Persian] company's business or any failure to afford the Company adequate protection."

"Does this mean," shouted white-haired Leader George Lansbury of the British Labor Party, popping up from his seat. "that if certain contingencies arise the British Government proposes to take armed measures?"

"I decline to answer on the ground that the question is hypothetical," snapped Captain Eden. "I think that the position is quite clear."

The naval position was, according to the British Admiralty, that H. M. S. Enterprise, flagship of the East Indies squadron, was steaming up the Persian Gulf, accompanied by H. M. S. Emerald and the 10,000-ton cruiser H. M. S. Hawkins in command of Rear Admiral Dunbar-Nasmith, V. C. This movement the Admiralty said was part of "regular maneuvers" but had involved changes in the sailing orders of the three ships "such changes being not unusual."

Also in the Persian Gulf was Persia's brand new navy of six small Italian-built gunboats, the largest being the Palang (Panther) and Babr (Tiger), each of 650 tons. Powerless to cope with British war boats 15 times their size, the Persian ships were nevertheless potent because they were still manned by Italian crews. If shrewd Reza Shah Pahlevi had guessed right, the British mammoths would not fire on his tiny Tiger and Panther for fear of provoking Signor Benito Mussolini.

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