Whose Ox Is Nationalized?

In Iran's Majlis (Parliament) last week, 106 deputies got to their feet and voted to nationalize Iran's oil; not a single deputy voted no. A spectator in the galleries screamed: "Eight grams of gunpowder did this!"

He meant that the Majlis was intimidated by the assassination of Premier AH Razmara, who had opposed nationalization of oil.* That was true, but it was only part of the story that had led up to one of the worst calamities to the anti-Communist world since the Red conquest of China.

Iran's oil (6% of the world's production and Western Europe's biggest oil source) was threatened because of 1) British business greed in past decades; 2 British Socialist advertising of the magic word "nationalization" 3) failure of the U.S. to develop an effective policy in Iran; 4) complete lack of U.S.-British cooperation (TIME, Jan. 8). As usual, the Russians stand to gain from the West's failure: their puppet Tudeh party, officially outlawed, is very active behind the scenes in the drive for nationalization of Iran's oil. Thousands of people ran through Teheran's streets, shouting: "Our oil is nationalized!"

A Loophole for Hope. The assassination of Razmara and fanatic threats of other killings would not have had so spectacular an effect on the Majlis if anti-British feeling had not been smoldering for years in Iran. It began to flare two years ago when Sir William Fraser, board chairman of the Anglo-Iranian Oil Co. (which has a concession for all oil production in southern Iran), offered to double the royalties paid to the Iranian government.

This apparently generous action convinced the Iranians that the British had been bilking them for years under the old rates. The Majlis refused to ratify the agreement with Anglo-Iranian, and payments to Iran, earmarked to finance a desperately needed development plan, were held up. Although the British government owns 52.55% of Anglo-Iranian voting stock, it let the deadlock between Fraser and the Iranian government continue, as if nothing more were involved than commercial haggling over price. Nor did the U.S. make any serious attempt to break the deadlock, even after the development plan, drawn up by top U.S. engineering companies, had to be abandoned because Iran's government was without funds.

In spite of the best efforts of Razmara and the Shah,* Iran's economy began sliding downhill. As unemployment grew, Iranians tended to blame the whole mud dle on British imperialism. Tudeh party leaders and Mohammedan fanatics of the National Front joined in spreading the be lief that nationalization of oil would end Iran's troubles.

In fact, Iran just does not have the know-how to operate Anglo-Iranian's holdings, which include the world's biggest refinery. Last week's Majlis resolution contained a clause inviting foreign experts to help in nationalization. The experts could scarcely be British or American. If Iran (improbably) turned to Russia for such aid, it would fall victim of a far harsher imperialism than the British ever imposed.

Last week's action by the Majlis left a small loophole which admitted some hope. Nationalization is not to take effect until after two months of study. The Shah and his new Premier, Hussein Ala, are both opposed to nationalization, and the period of study may give them a chance to cool off the anti-foreign pressure drive.

Contagious Fever. Britain last week sent a strong note protesting that nationalization of Anglo-Iranian was illegal, and offering to give Iran 50% of the company's profits. (This offer matched the terms given in January by the U.S.'s Aramco Oil Co. to Saudi Arabia.) Said London's Daily Mail: "If this business were not so serious, it would be very funny indeed. For the Socialists to lecture another government for wishing to nationalize a basic industry is a prize example of the Devil rebuking a sinner." The liberal News Chronicle found "an element of poetic justice" in the Laborites' dilemma.

Meanwhile, the nationalization fever spread. Some extremists in Teheran demanded the nationalization of American oil holdings on Bahrein Island in the Persian Gulf. Iran has not exercised effective sovereignty over Bahrein for a century and a half. Since 1880 the island has been a virtual British protectorate by treaty with the Sheik of Bahrein.

From Cairo came reports of a move in the Egyptian Parliament to nationalize the Suez Canal, dug by and operated by a French company in which the British government now owns about 44% of the stock.

On the London Stock Exchange Anglo-Iranian shares, which stood at 120 a few weeks ago, dropped last week to 100, a five-year low. Britain's Socialist leaders fretted and squirmed over the Iranian crisis and all the other ills that might follow in its train. Apparently, it made a lot of difference whose ox was nationalized.

* Dr. Abdul Hamid Zanganeh, president of Teheran University's law faculty, was shot and wounded this week by a Moslem divinity student. Conflicting reports said the attempted assassination was motivated by the fact that 1) Dr. Zanganeh had caught the student cheating in an examination; 2) Dr. Zanganeh, education minister in the late Premier Ali Razmara's cabinet, had opposed nationalization of oil. * Who last week ceremoniously began the distribution of his vast land holdings, on which 500,000 peasants live. The land is not a gift, but is being sold under easy installment terms. The proceeds will go to finance farmers' cooperatives.

This file is automatically generated by a robot program, so reader's discretion is required.