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

the flow
of oil from Iran to world markets’.53 If Iran agreed to the two conditions, firstly,
the British Government would make arrangements for the movement
of oil already stored in Iran, and appropriate payments would be
made. Finally, the United States would give a grant of
$10,000,000. Later, in September, the Iranian Prime Minister
sent his formal rejection of the Anglo-American proposal. In his
reply, Musaddiq offered a number of points.

1. that the Hague Court has clearly shown the dispute to be an
   internal matter. The appropriate forum therefore to discuss
   Persian compensation is the Persian courts. However, he is
   prepared to agree arbitration on compensation by the Hague
   Court as a concession, but only on certain conditions, viz.:

   1. that the
      arbitration is confined to compensation for
      loss of assets and of the oil in storage at the time
      of nationalisation:

   2. that there is
      prior agreement between the parties
      clearly defining and limiting the questions for
      arbitration, which must contain no reference to the
      1933 Concession or to the Company’s legal position
      prior to nationalisation, but which will include
      substantive and detailed Persian counter- claims:

2. an immediate demand
   for £50 million allegedly owed by the
   company, which he now wants in dollars from the A. I.O. C.,
   but would also accept as a grant, gift or