Threatening Letter

The great danger in U.S. foreign aid is that it may tempt the governments of some countries to pursue ruinous policies, and hand Uncle Sam the bill. The presentation could be accompanied by the threat of Communism and/or collapse if help is not forthcoming.

Iran's wily Premier Mohammed Mossadegh gave a glaring example of this technique. He boastfully accepted the prospect of national bankruptcy involved in his stubborn refusal to negotiate with the British on compensation for oil nationalization. But he expected the U.S. to bail him out when the going got tough. A month ago he wrote a threatening letter to President Eisenhower:

"The Iranian nation is now facing great economic and political difficulties. There can be serious consequences from an international viewpoint as well if this situation is permitted to continue. If prompt and effective aid is not given this country now, any steps that might be taken tomorrow to compensate for the negligence of today might well be too late . . ."

The President did not flinch. He answered in a blunt letter made public last week: "The failure of Iran and the United Kingdom to reach an agreement with regard to compensation has handicapped the Government of the United States in its efforts to help Iran ... I am not trying to advise the Iranian government on its best interests. I am merely trying to explain why, in the circumstances, the Government of the United States is not presently in a position to extend more aid to Iran or to purchase Iranian oil ... [I] hope that before it is too late the government of Iran will take such steps as are in its power to prevent a further deterioration of [its] situation."

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