Monday, Sep. 08, 1947

Dangerous Road?

In Washington last week a slender, dark girl saw with her own eyes that Persia had powerful friends in the U.S. Several hundred people thronged the elegant, red brick Persian Embassy to shake hands with Her Imperial Highness Ashraf Pahlevi, twin sister of Persia's ruling Shah. President Truman received her in the White House, and Bess Truman was there too. This week the State Department scheduled a big, brilliant reception.

The princess and her sister Fatmeh were in the U.S. merely to study the Red Cross and other welfare bodies, but Washington had political motives for being nice. Soviet Russia, quiescent since last winter, was rumbling again on Persia's northern border. Persia might need help.

Oil. After the Teheran Government of wily, tough Premier Ahmad Gavam reoccupied the northern province of Azerbaijan without interference from Russia (TIME, Dec. 23), Gavam was able to smash the Azerbaijan "Democrats" (Red sympathizers) and also to reduce the Communist-tutored Tudeh party to insignificance. That left the Soviet-Persian oil agreement, signed in April 1946, which could not take effect until the Persian Majlis (parliament) ratified it.

The agreement provided for a joint stock company, to exist for 50 years, during the first half of which Russia would hold 51% of the stock, Persia 49% (thereafter 50-50). Russia would take oil from north Persia, pay all prospecting and installation costs. Persia would share in the profits, keep title to the land.

After a long-drawn-out election, the new Majlis began slowly to organize. Russia bided its time. Then, in June, two things happened. In an interview, wily Gavam said he thought the oil agreement had no chance of ratification unless it was modified. Next day the U.S. signed over to Persia a $25 million credit, most of it frankly intended for military equipment and supplies.

Force? Last week the new Majlis had been sitting since mid-July and there was still no action on oil. Moscow struck--verbally. Pravda screamed that Gavam was trying to sabotage the deal and warned him against following that "dangerous road." His attitude, Pravda averred, was "dictated by certain foreign circles." Soviet Ambassador Ivan Sadchikov pounded on Gavam's desk, demanded immediate action. Gavam answered smoothly that the matter would have to wait its turn on the parliamentary schedule.

Gavam's continued tenure of office had to be approved by the new Majlis, and he won, with 78 votes out of 116. But he did not at once accept, believing that an even stronger demonstration of confidence was necessary in this hour of crisis.

It seemed clear that if the oil deal were junked by parliamentary vote (as appeared very likely), Russia would have to back down or use force. Force was always a possibility. Red troops and their Kurdish adherents were reported massing across the border, and a U.S. observer said that north Persian cities were having "invasion jitters." Gavam did not seem unduly worried. He knew that he had friends, and that his friends expected him to stick to his guns.

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