British Diplomatic Oil Crisis: Contemporary Anglo-Saxon Geopolitical Rivalries in the Persian Gulf: Drawing a Lesson? Or Sir Anthony Eden‘s Delusion of Grandeur.

Government
to nominate its arbitrator. Dr. Musaddiq emphasised
Iran’s sovereign right to nationalise its oil, a right which cannot
be subjected to arbitration by an international organisation or
surrendered. He rejected the Anglo-Iranian Oil Company’s request.

On the 5th July, the
International Court made an order calling upon
the Persian Government and the AIOC to do nothing which would
aggravate the dispute, the AIOC in the meantime to be permitted to
carry on their industrial and commercial operations as they had been
doing prior to the 1st May under the supervision of an Anglo-Persian
Board with one neutral member. On the 7th July His Majesty’s
Government informed the Persian Government that they accepted the
Court’s Order in full. On the 9th July the Persian Government
informed the Secretary General of the United Nations that they
rejected the Court’s Order.11

Then,
during the course of his talks with Dr. Musaddiq in Teheran,
Harriman eventually, on 24th July, persuaded him to agree to open
negotiations with the British Government on the following basis:

In the case of the British
Government, on behalf of the former
Anglo-Iranian Oil Company, recognising the principle of the
nationalisation of the oil industry in Persia, the Persian
Government would be prepared to enter into negotiations with
representatives of the British Government on behalf of the former
Company. 12