 The world's most honored watch is Laun Jean. Laun Jean watches have won 10 World's Fair Grand Prizes, 28 gold medals and more honors for accuracy than any other timepiece. Laun Jean, the world's most honored watch, is made and guaranteed by the Laun Jean Wittenall Watch Company. It's time for the Laun Jean Chronoscope, a television journal of the important issues of the hour. Brought to you every Monday, Wednesday and Friday. A presentation of the Laun Jean Wittenall Watch Company. Maker of Laun Jean, the world's most honored watch, and Wittenall, distinguished companion to the world-honored Laun Jean. Good evening. This is Frank Knight. May I introduce our co-editors for this edition of the Laun Jean Chronoscope? Mr. Frazier Hunt, famous American journalist, magazine writer and commentator, and Mr. William Bradford Huey, editor of the American Mercury. Our distinguished guest for this evening is Mr. Henry Grady, United States Ambassador recently returned from Iran. The opinions expressed are necessarily those of the speakers. Ambassador Grady, our Chronoscope audience has heard several oilmen in the last few weeks on the Iranian situation. Tonight, our audience, I'm sure, can get some real, inside, authoritative information from you, sir. Now, when did you go to Iran as our ambassador? In June 1950. And in June 1950, sir, did you, as our ambassador, or did our embassy there, understand what it would like to happen? Did you foresee the developments? We realized the great importance of a settlement on the oil questions. We felt that that was basic to any economic measures we might take to aid the country and stem the trend toward communism. And did you alert our State Department? And at that time, what was your analysis of the situation? Did you think that definite action should be taken by the British or by ourselves? The Iranian government had before it, before its parliament, a supplementary agreement to the agreement which they had signed in 1933 with the Iranian government, which provided for an increase in the royalties. That had been signed but not ratified. And to have the royalties become effective, it was necessary to have it ratified. So it was already over a year from the time of signing when we arrived. What was the percent that they had originally paid and were trying to get an agreement to pay at that time? About 13 to 15 percent. The original? The original. The supplemental agreement would have about doubled that to 25 to 30. What were we paying at that time? The American oil companies paying, for instance, to Saudi Arabia. Well, shortly after that time, we went on a 50-50 basis, which was an increase over what we had been paying. Not a large increase, but a substantial increase. A considerable increase, yes. So they were going to pay about a little over half what we agreed to pay. Correct. For our audience, sir, I'd like to review that. The British had been paying about 13 percent, and they were offering to pay it from 25 to 30 percent. Yes. And during that same period, the United States was paying a higher rate of royalty to the Middle Eastern countries. That's correct. And is it your opinion, sir, that the British were at fault in not meeting our terms in the Middle East? It wasn't so much a question of meeting the terms regarding royalties, but it was a matter of making a number of non-monetary concessions. Rasmorah came in as Prime Minister in June, short of a few days before I arrived, and he was very anxious to get this supplementary agreement ratified. And I believe that if the British company had been willing to grant him some non-monetary concessions, we could have gotten it ratified by the parliament, and the whole oil question, at least for the time being, would have been settled. I see. Now, in non-monetary, you mean questions of face and other concessions that would have helped him? I mean, for example, employing more Iranians in the plants, a matter of the prices charged for oil products within Iran. The amounts of the production of the company sold in Iran was only 5 percent, and we felt they could easily have given the same prices that they were giving elsewhere. By elsewhere, I mean to the British Navy and to the British Air Force. As an American ambassador, did you urge the British to make those concessions, sir? Yes, very strongly. And you feel that had those concessions been made that we might have avoided some of this crisis? Yes, there's no assurance, of course, but I think it would have made it possible to get the supplemental agreement ratified, and the whole atmosphere would have been cleared, and this nationalization movement would not have started. That only came along six months after Asmara was prime minister, in other words, in the fall of 1950 and winter of 1950. Well, the liberal labor government in London weren't very active in enforcing a new settlement that would have been considered fair by the Iranians, were they? They didn't seem to be very anxious with regard to the nationalization of the oil industry in Iran. They finally accepted nationalization, but for some time they were hesitant. Now, Mr. Ambassador, our audience has heard this term nationalization used over and over. Now, by nationalization, do you mean confiscation? Is that what it amounts to in the Middle East? It shouldn't mean that. Nationalization should carry with it the obligation for adequate compensation for the properties taken. Have the Iranians offered to pay the British for these properties? Yes, in the law, which is passed, there was provision for setting aside 25% of the proceeds from the oil operation for paying British claims. The British have been concerned that the company would not make profits under Iranian operation, and hence have had no assurance that they would get payment for their properties. Can you illustrate for us, sir, just how important this matter is to the American people? Now, what is the oil potential in the Middle East, for instance, or how can you illustrate the importance of this for Americans? Iran itself produces about 6% of the world production of oil products. It has reserves in terms of world reserves of about 17%. The rest of the area around the Persian Gulf has reserves of about 50% of the world's known reserves. In other words, almost half of the world's known reserves is in this area? Yes, and consequently, it's of vital importance for the future. In any terms, you may think of industrialization, warfare, whatever you may. But in the public mind, Ambassador Grady, it seems to me that the biggest fear that we have in this country is the intrusion of Russians in this picture. Now, how would Russia get this oil? I'll say that we went from one failure to another, and Russia, there was a coup d'etat, and the Russian group would get in control of the government. How could Russia really manage to get this oil out? It's a long ways to the Black Sea. If a government-friendly, the Russia came in as a result of a coup, an agreement could be made for the sale of the oil with the Russian government. The oil could be a considerable quantity, could be gotten out. There is a lot of oil stored in the tanks at the port of Khoramshar, and it could be moved by tankers and by overland, by trucks in containers. I don't think that you could move all the oil that was produced under normal conditions in Iran, I think a considerable amount, at least an amount that would be embarrassing to us. 6% of sale altogether, and Russia has about the same... About the same percentage, yes. But they couldn't hope to take out more than, say, 25%, couldn't they? Oh, no, they couldn't hope to take out, in the first place, unless there's a British company or some kind of a company goes in to operate and produce and sell to the market they've sold to in the past. I don't think that the Russians could get any of the oil. Mr. Ambassador, this interesting old gentleman, Mr. Mosedek, is now a visitor in the United States. Do you know him personally, sir? Yes, extremely well. Is he an able and responsible statesman? He's extremely able. He's a patriot. He's misguided in the way he's carrying out the nationalization program. I've told him that a number of times, and I've told him that as a friend of Iran, because I think a failure of this program of his may be very harmful to his country, and a failure to make some kind of an agreement with some responsible management company to operate, because I doubt that the Iranians themselves can operate this industry. He's honest. He's one of the aimless speakers in the country. Very attractive personality, good sense of humor. He's a Persian gentleman. Is he a prisoner of the nationalistic way there, or this revolt against the West? To a degree, that may be so. Not to a very great degree, because Mosedek is a man of great force himself, great willpower. He's not easily influenced by anybody. Is he a lone man here? Is he capable of making a settlement here in the United States? Well, he's taken such a strong position that it would be difficult for him to change his position. But that's because of his own, from his own angle. He's the man who makes the decisions. He's the man who's made them right along. And, sir, are you hopeful from all your knowledge, are you hopeful of his settlement there? There is a common interest, a mutual interest, on the part of both sides to get a settlement of this question. When you have a situation of that kind, there's always hope of his settlement. But I am not sandy, because the two sides are too far apart. I'm sorry, Mr. Hunt. I'm afraid that our time is up. Thank you so much, sir, for being with us. The editorial board for this edition of the Laun Jean Chronoscope was Mr. Frazier Hunt and Mr. William Bradford Huey. Our distinguished guest was Mr. Henry Grady, our recent ambassador to Iran. The worldwide prestige of Laun Jean watches is proof of their unsurpassed dependability and accuracy. These qualities are the result of the extraordinary excellence in design and manufacture of the Laun Jean watch movement. The beating heart of every Laun Jean watch. Here is the matured product of the skills and experience acquired through 85 years of watchmaking. The ultra-slow motion camera reveals a smooth, flawless mechanism of the Laun Jean balance assembly, the guardian of the accuracy of the watch. Through his magnifying glass, the skilled watchmaker sees in addition the precious hand-finishing of essential parts, which makes the Laun Jean watch so superior, so outstanding. Yes, there are tangible reasons why Laun Jean watches have won ten World's Fair Grand Prizes, 28 gold medals, and so many honors for accuracy in fields of precise timing. Now, when next you buy a watch for yourself or as a gift, remember, if you pay $71.50 or more for a watch, you're paying the price of a Laun Jean, and you should insist on getting a Laun Jean, the world's most honored watch, premier product of the Laun Jean Witten or Watch Company since 1866, maker of watches of the highest character. This is Frank Knight, again reminding you that the Laun Jean Chronoscope is brought to you three times weekly, every Monday, Wednesday and Friday. So won't you join us every Monday, Wednesday and Friday evening at this same time for the Laun Jean Chronoscope, a television journal of the important issues of the hour, broadcast on behalf of Laun Jean, the world's most honored watch, and Witten or a distinguished companion to the world-honored Laun Jean, sold and serviced from coast to coast by more than 4,000 leading jewelers who proudly display the emblem, Agency for Laun Jean Witten or Watchers. This is the CBS Television Network.