TEHERAN: Well-informed sources today [May 29] indicated that Iran and Britain were moving towards an amicable settlement of their oil dispute through the good offices of the US Ambassador to Iran, Dr Henry Grady. Prime Minister Mohammed Mossadeq last night received Dr Grady at the latter’s request at Parliament building, when, it is understood, the US Ambassador offered to act as mediator to settle the oil dispute by negotiation. This is the first hopeful report after weeks of suspense and uneasiness over Iran’s firm resolve to take over the AIOC [Anglo-Iranian Oil Company] and Britain’s outright opposition to nationalisation.

In spite of British Government and AIOC complaints to the International Court of Justice at The Hague to brand Iran a violator and to issue an injunction to stay execution of the oil nationalisation law, London reports, which said the British Government had recognised the principle of nationalisation, were received with some hope by Iranian circles here.

These reports were the first sign of a change in the British attitude to meet Iranian aspirations to nationalise the oil industry.

Published in Dawn, May 30th, 2026