 Good evening. This is Frank Knight before introducing this evening's discussion Let's take a look at the night baseball game at New York Yankee Stadium Do you know that all umpires of the major baseball leagues the American and the national this year as for years past Use long gene watches exclusively for timing all games including the world series The fact is that long gene watches are official for timing championship sports in all fields throughout the world Long gene is the official watch for the United States Olympic Committee for the American automobile Association for the National Aeronautics Association the American Powerboat Association and many other national and international sports and contest groups Now why is this so? The answer is found in the greater accuracy which is inbuilt into every long gene watch Accuracy not as an empty claim, but as an established fact Proven year after year in the competitive accuracy trials at the great government observatories For excellence for elegance for greater accuracy and long life Throughout the world no other name on a watch means so much as long gene The world's most honored watch The long gene chronoscope each week looks for the truth in the vital issues of the hour and here to discuss these issues are our co-editors Mr. Henry Haslett a political economist of respected judgment and contributing editor of Newsweek magazine and Mr. William Bradford Huey editor of the American Mercury Our distinguished guest for this evening is mr. Max Thornberg wartime petroleum advisor to the Department of State and expert on Middle Eastern affairs In this spontaneous and unrehearsed discussion the opinions are necessarily those of the speakers Mr. Thornberg in addition to having been the advisor to the petroleum advisor to the state department What's been your experience in the oil industry? I spent something more than 25 years with a standard oil company of California As an engineer a refinery manager chief engineer of the company And vice president of the merger we formed with the texas company for eastern hemisphere developments What's been your experience in the middle east? I've spent the greater part of the past 16 years living and working in the middle east or in close connection with its problems Well, you were you were advisor on to the shaw The last five years I have been most of the time in Persia as advisor to the Persian government Mr. Thornberg, let's get to the bottom Of this nationalization crisis in Iran. What are the basic phasers underlying this crisis? Well, the oil nationalization itself Is not in my opinion The principal thing that is wrong in Persia. So to get to the basis of it. We have to go back of oil nationalization Oil nationalization itself is a very serious and important Thing that is wrong. Is it a british failure first of all? The british have in my opinion contributed to what has gone wrong in persia But a good many things went wrong before we were faced with oil nationalization The british have of course had interest in that part of the world for 150 years and They have exercised their influence in controlling the politics of persia for A great many years. Well now two weeks ago. We had Lord wilmott of the present british government on this particular program He told us that the iranians had Realized vast benefits from the anglo- iranian contract. I do. Do you agree with that view? I wouldn't say that there hadn't been Vast benefits realized But they've been realized by a very small part of the people of persia perhaps by one percent or something of that sort Well, how have the british failed specifically now? Well, the british have Unquestionably in my view interfered with the political life of the country in such a way that as To make it impossible for The shah to develop a really responsible government in his country one that would look after the welfare of the people That is one way in which the british have Brought about this crisis that faces us today. Well, mr. Thornburg now that we have this crisis And now that the iranian government has rejected out of hand the decision of the haig court or the international court of justice What is the next step that the brit that britain can take? What is the next step that the atlantic nations can take? I don't believe that any step that anyone takes aim directly at this oil nationalization itself Is going to cure the situation in persia What is wrong in persia is that there is no government over there that is responsible to deal with Now you ask what is likely to happen? Uh, there is virtually a state of anarchy today in persia and you cannot forecast what anarchy is going to do One of the things that might happen would be a general revolution of the people that might be uh Uh that they would kill a considerable number of the british operators that are in there. There might be a religious Uprising there might be a communist uprising anything of that sort could happen today when there's no strong government there to control Coming back to the causes of this unrest in this situation that you describe Uh, are the russians uh partially the cause of it? I wouldn't say that the russians are Uh, really the cause Uh Any important trouble in persia today they are going to be the only ones who benefit from what's going wrong over there That was something i was just going to ask isn't the immediate effect that the oil Has been an effect lost to the west for the time being and isn't it Quite probable or isn't the danger very great that it will fall into the hands of russia within a year or so unless uh A sound government is established in the country very soon In my opinion, we will lose persia to the communists. Then they'll get the oil along with the rest of it Well, you uh, have there been american failures here too. We've spoken of the british failures Have they also been american failures to our american contributions to this present state of anarchy? The uh american government has only very recently taken any interest in the middle east see since we had our own oil Developments over there in the last 10 or 15 years And we rarely have never developed a Policy toward the middle east or toward persia Now In the last two years, I would say that our failure our government's failure to recognize what is taking place in persia Which could have been seen so clearly and must have been seen by our embassies air Is to a considerable extent responsible for this crisis that has suddenly come onto us Well, let me ask you this sir Uh, we are are we more successful than the british in our operations in the middle east I mean our oil operations our oil operations Then how how is it that we are more successful? What have we done with our oil operations that the anglo-uranian has not done? Well, the uh The two principal american oil concessions in the middle east and Bahrain and uh, sardine arabia Uh, have had no trouble of any sort in the first place. They have been Ready to adjust their royally payments to the governments and have done it during this past year voluntarily Have increased them very substantially And the british have not done that the british have not done that they they have been negotiating for two years, but never Due to the company's own fault in my opinion Never came to an agreement. Are you speaking of british policy generally or simply of anglo-uranian? I'm glad you asked that because what i'm speaking of is anglo-uranian oil company policy not, uh british foreign policy generally But the british government owns the majority of the stock in anglo-uranian The british government owns 52 or 53 percent, but uh To the best of my knowledge the foreign office or the british government has left the management of the company in the hands of its commercial board of directors Well, mr. Thornberg doesn't this whole incident Uh throw rather a uh An ominous light on point four That is to say how can you have a system of loans to foreign governments of this sort when the property or whatever is there can be seized And nothing in particular can be done to rescue the property once it's taken over well that uh Does raise quite a question, but uh I think all the nations in the world recognize the sovereign right of any government to Nationalize private property in the public interest Provided it's compensated for to the former owners Well, shouldn't the compensation be such as not to scare away future investors After all isn't it in the interest of iran as of any backward nation to attract the maximum amount Of foreign private capital for development. Isn't that what it chiefly needs and doesn't have to reassure investors in order to get that Yes, of course from that point of view, it's unfortunate that this Tragically unnecessary accident of oil nationalization ever took place The the uh the prisons who have led the country into oil nationalization I am perfectly sure never had the slightest intention of nationalizing that oil industry That uh that as I say was an accident pushed on to them Through the uh the inept handling of the negotiations by the company Well, can muzzadak produce oil? Can he be make no, I don't believe that the prisons can uh operate any part of the oil industry Which means that unless some solution is found The oil industry will shut down. I think this point should be brought out And since you are something of an expert on these nationalization problems What do you find that's hopeful in the picture now and what is our solution? I don't see much that is hopeful in the oil picture itself The hope that I do see is almost entirely in this fact that fersha has in the in its ruler the shah A young man of admirable qualities who for several years has been trying to establish a decent government in his country You are an advisor to the shah, I believe that's right. And you are happy and I am not I see. Are you impressed with the sincerity in his ability? Very impressed. Yes, and you think he is the hopeful fact He certainly is now if uh the shah had the support of the british government And of our government. Well, I'm I'm sorry, mr. Thornburg, but I afraid our time is up. Thank you very much for being with us tonight The editorial board for this edition of the launch in chronoscope was mr. Henry Haslett and mr. William Bradford Huey Our guest was mr. Max Thornburg the noted authority on Middle Eastern affairs Throughout the world No other name on a watch means so much as long gene the world's most honored watch Honored for excellence and elegance by 10 world's fair grand prizes and 28 gold medal awards A record unmatched by any other watchmaker and winner of more honors for accuracy than any other time piece For any occasion the world's most honored gift is laun gene the world's most honored watch Laun gene the world's most honored watch Premier product of the laun gene with nor watch company since 1866 maker of watches of the highest character Next week at this same time over the cbs television network The laun gene with nor watch company will again present the laun gene chronoscope the television journal of the vital issues of the hour This is frank knight speaking for laun gene the world's most honored watch And with nor distinguished companion to the world honored laun gene both sold and service By more than 4 000 leading jewelers from coast to coast Who proudly display the emblem agency for laun gene with nor watch This is cbs the columbia broadcasting system