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Potentially the strongest force for peace and order in Iran is the U.S. Lack of interest in Iran and the Middle East by the U.S. State Department has dissipated much of the good will that existed for the U.S.; more & more, Iranians have come to regard Americans simply as Britons without monocles. But there are signs that it is not too late for U.S. action.
After Mossadeq became Prime Minister, U.S. Ambassador Henry F. Grady shut himself up in the U.S. embassy for several days to show that he was not interfering in Iran's affairs; the Iranian press promptly attacked him for his noninterference (Iranians want the U.S. to put pressure on the British to meet Mossadeq's demands). The incident proved an important point: no matter how loudly Iranian politicos shout against foreign intervention, they would welcome U.S. intervention if they considered it in the country's favor.
Pressure from Washington. U.S. policy is to calm everyone down, "wait for the air to clear," and later get the British and Iranians together around a conference table. Washington and London still hope that the British can keep part control of Iranian oil by running the huge Abadan refinery as well as the distribution machinery, i.e., 1,718 miles of British-built pipeline and 147 British-owned tankers. The crucial issue: Mossadeq wants British technical assistance to run the fields, without strings attached; the British are willing to offer technical assistance, but only in exchange for certain concessions e.g. continued part ownership.
Last week, when Sir William Fraser, chairman of Anglo-Iranian, indicated that he was about to take a "tough" line with Mossadeq, Grady immediately cabled Washington, which put pressure on Fraser via London to be reasonable. At the same time, Grady informed the Iranians that 1) the U.S. recognized Iran's right to nationalize its resources, but 2) would not make available U.S. technicians to run the nationalized fields. Last week, limited U.S. pressure showed some limited results.
Coolness & Conciliation? London, meanwhile, had done a little more saber-rattling, announced that a crack British parachute brigade would be sent from England to Cyprus, 900 miles from Abadan. At the same time, London assured Washington—which believes that British military intervention in Iran would be a disastrous mistake—that troops would not be sent in unless it became necessary to protect British lives and property. The British also announced that they would refer the nationalization dispute to the World Court at The Hague.