TUESDAY, JANUARY 13, 1953, THE MICHIGAN DAILY A BARREL OF OIL: The Iranian Crisis MATTER OF FACT By JOSEPH and STEWART ALSOP J eL1eri to tA &d'or (EDITOR'S NOTE: This is the last in a series of interpretive editorials dealing with the highly nationalistic Middle East.) RAN'S Premier Mohammed Mossadegh is presently sitting on a highly explosive barrel of oil, and a couple of attached fuses are burning rapidly. Ever since the summer of 1951 when Iran nationalized the world's largest oil refineries at Abadan, booting out the British technicians, not one drop of Iran- ian oil has reached world markets. The British, irate at the seizure without compensation of refineries representing thirty years work and hundreds of millions of dollars, slapped an immediate embargo on Iranian oil. Without British oil tankers and, the cooperation of what is practically a world oil monopoly, Iran has been un- able to sell any oil. As a result of the loss of her oil markets and a consequent loss of about $150 millions in royalties, Iran's economy is in a dan- gerously weak condition. Strikes and riots last summer indicated that Iran's already poor masses are now especially ripe for Communism. So far, the Communist Tudeh party has been waiting on the sidelines for the economy to collapse by itself. Just last week, Iran's fiery, and enig- matic top man Mossadegh was reported to have warned U. S. Ambassador Loy Henderson that the Communists might take over the nation unless ample Amer. ican aid was forthcoming immediately. State Department and British officials fear that if Iran goes Communist, Russia, bordering Iran on the North, will fall heir to not only the world's biggest oil re- fineries and large oil fields, but also her first warm water port on .the Persian Gulf. No solution to the British-Iranian oil dis- pute, however, is now in sight, in spite of much diplomatic haggling. On Augut 30 of last year, President Tru- mban and Pfime Minister Churchill sent a joint proposal to Iran. Their conditions: Iran must (1) submit the question of com- pensation for the Abadan refineries to the UN's International Court of Justice; and (2) appoint representatives to negotiate with the Anglo-Iranian Oil Company (for- mer owners of Abadan) to arrange export of some 20 million tons of British refined oil now stored in Iran as British property. If Iran agreed it was stipulated that (1) Anglo-Iranian would market the oil now stored in Iran, making suitable pay- ments to Iran; (2) England would relax restrictions on exports to Iran and on Iran's use of sterling; and (3) the U.S. would immediately grant $10 million to assist the Iranian government with its budgetary problems.' "Blackmail," countered Prime-Minister Mossadegh on Sept. 24. In an angry mes- sage, he said that England's export restric- tions and oil embargoes were illegal whether an agreement was reached or not. He also demanded payment of royalties on the oil already refined (a matter of some $137 mil- lion) before submission of the case to the world court. Mossadegh added that he'd claim vast damages in the court against Britain for bottling up Iran's legally na- tionalized oil production. Mossadegh also stressed the legality of the nationalization and justified it as elim- inating British interference in Iran's affairs and preventing economic exploitation by Britain. Following Mossadegh's statement, Iran broke off diplomatic relations with Lon- don. This is roughly the tangled state of affairs at present. A settlement of differences between Brit- am and Iran would strengthen Iran eco-. nomically and politically, restoring confi- dence in the government. But unless Iran gets a fair deal, a settlement might be the signal for cries of "sell-out" and a national- ist reyolt led by the Tudeh party. Meanwhile, the United States, deter- mined to keep Iran from falling into Soviet hands, has been exerting its in- fluence toward a settlement. In Iran, U.S. Ambassador Henderson and Mossa- degh are conferring on the problem. It is believed that the Iranian oil dispute is one of the main reasons why Prime Min- ister Churchill recently crossed the ocean to talk with President-elect Eisenhower. At this stage, what Russia would like most is a split between Britain and the United States on this issue. Immediate reconciliation of the problem will thus be necessary to preserve Anglo-American har- mony and to keep Russia out of strategic Iran. -Jon Sobeloff ON THE Washington M erry-GoRound with DREW PEARSON -- ------ - - - (EDITOR'S NOTE-This is the first of a series of Washington Merry-Go-Round columns in which Drew Pearson diagnoses the Eisenhower cabinet. Today's-brass ring goes to new Secretary of the Treasury George M. Humphrey.) WASHINGTON-The man who will col- ltyourtaxesithe Eisenhower Ad- Iinistration, who will partially determine how much those taxes are, and who will have a major voice in the question of infla- tion, deflation, loans to Europe and borrow- ings at home, is a modest, unpublicized busi- nessman from Cleveland, Ohio. George M. Humphrey, the new Secre- tary of the Treasury, is chairman of seven big corporations, president of three, and on the board of directors of 34. They total assets of $2,600,000,000-almost as much as the national budget prior to the Roosevelt Administration. Looking over Mr. Humphrey's record and his prospective colleagues in the cabinet, you come to this conclusion: Gen. Eisen- hower has picked a conservative business- man's cabinet, but he has picked the first team. The general calibre of his appointees is far ahead of other GOP administra- tions under Hoover, Coolidge, Harding. And if a conservative government does not survive in this country it will not be be- cause Eisenhower has picked second- raterss He is definitely going to bat with the first team. And the next four years under it will be among the 'most important in re- cent history. They will also be extremely important-and fascinating-to watch. BIG HOLDING COMPANY THE NEW Secretary of the Treasury typi- fies the first team. With almost no fan- fare, he has built up one of the bigger holding corporations of the nation. The M. A. Hanna Company, which he heads, controls the biggest coal company in the world, steamship companies, steel mills, rayon factories, vast ore deposits, a sugar company, and one of the biggest banks in Cleveland. This background has the advantage of bringing great ability to government, but It also puts a cabinet member under con- stant fire for possible favors to his own far-flung companies. In the past three weeks, for instance, two companies owned by the future Secretary of the Treasury received tax write-offs of more than $22,000,000. One tax write-off was on an iron ore project in Dickinson County, Michigan, on which the Hanna Coal and Ore Co. got. a 75 per cent tax amortization on a $11,345,000 investment. The other was a 70 per cent write-off on $22,000,000 to the Hanna Coal and Ore Co. in Douglas County, Ore., for ferro-nickel facilities. Fortunately for Mr. Humphrey, these tax concessions were granted by a Demo- becomes Secretary of the Treasury, and when his many companies and their sub- sidiaries come up for government benefits, as is inevitable, the situation may prove embarrassing. SECOND ANDY MELLON? NO ONE quite like Humphrey has sat in the cabinet since the days of Andrew W. Mellon. Born in Michigan 63 years ago, Humphrey began life as a small town Mich- igan lawyer, came to Cleveland where he joined the M. A. Hanna Company, founded by the famous-sometimes infamous-Ohio political boss who was the power behind President McKinley. At that time the Han- na company was primarily engaged in haul- ing ore down from the Mesabi range in Great Lakes ore boats and delivering it to the steel companies of Ohio and Pennsyl- vania. Humphrey, however, saw no reason why his company should not process the ore as well as deliver it; so, just before the depression, he put together the National Steel. Company. There couldn't have been a worse time to start a new steel com- pany. Nevertheless, National Steel not only weathered the storm better than any other steel company, but was generally admitted to have been ablest managed. About this time it became apparent that George Humphrey had an extraordinary gift of judgment. In fact, some of his com- petitors claimed it was a gift of prophecy. During the depression, for instance, the most profitable part of the average steel company was the tin-plate division. And National, Steel, of all the steel companies, had the greatest percentage of tin-plate capacity. Humphrey had built the com- pany with the tin-plate shortage in mind. The steel industry also woke up to find that their biggest customer was the Detroit automobile industry. But they also woke up to find that Humphrey was ahead of them. He had set up his Great Lakes Steel Cor- poration right in Detroit for that purpose. HELPED JOHN L. LEWIS ANOTHER example: at the height of the NRA period, the steel companies de- cided in their NRA code to limit the build- ing of open hearth furnaces to the number already started by each company. They didn't want more furnaces built. But after the code had been adopted, other steel com- panies discovered that Humphrey had pre- dicted this would happen and already had laid down eough new hearth capacity to last National Steel for the next decade. It was Humphrey who also had the vision to see, before anyone else, that our iron ore deposits were running low in Minnesota-Michigan. And, although he had no more facts at his disposal than the rest of the industry, he spent 'several mil- lion exploring iron ore of Labrador and then bought up that ore field whole hog. His Labradnr devlonnment cnmnanv he- WASHINGTON-President . Truman has now lifted a corner of the paper cur- tain of meaningless official secrecy, that presently conceals the strategic facts of life from the American people. Referring to the hydrogen bomb test at Eniwetok, he has at last warned us that "from now on, man moves into a new era of destructive power." We should all be grateful, no doubt, even for this vague and limited dis- closure, which incidentally rather dra- matically confirms previous reports in this space. But it is still worth consider- ing how the paper curtain has operated to exclude the people of this nation from decisions of the utmost national import, and to hide from them facts of the utmost national significance. The theory of the hydrogen bomb, it must be remembered, was fully published by the Austrian scientist, Hans Thierring shortly after the first atomic bomb was dropped on Hiroshima. Writing in Vienna, with no ac- cess to classified American information of any kind, Thierring told the whole basic story in 1945. At that time, of course, the theoretical .possibility of a hydrogen bomb was also known in this country. At the end of the war, the question arose whether to launch another great hydrogen bomb project, com- parable to the Manhattan District project which developed the Atomic bomb. Presi- dent Truman referred the question to a committee of distinguished scientists, head- ed by Dr. Vannevar Bush. .'The nature of the weapon inspired Bush and his colleagues with the deepest moral horror. They rightly considered that it would be wasteful to attempt such an ambitious new step in that primitive era of the atomic art. They also expected our monopoly of atomic weapons to en- dure for a long period; and so long as we enjoyed this atomic monopoly, a hy- drogen bomb seemed needless. Hence the committee of scientists, which was a secret body, recommended against the proposed hydrogen bomb project. President Truman accepted their recommendation. Fron 1945 until 1949, important research into hydrogen bomb problems was carried on. But from 1945 to 1949, it was the of- ficial but unannounced American policy not to attempt to build a hydrogen bomb. This phase ended with the explosion of the Soviet atomic bomb in September, 1949. By this time, the theory nakedly set forth by Thierring had been enormously supple- mented and buttressed. Some of those who knew that hydrogen bombs were already a practical possibility, now insisted that the American policy must be altered. They urged that an attempt must be made to build these bombs forthwith. Others still opposed such an attempt. The division was deep and the debate was sharp. The more influential scientists formed into warring camps. So did the Atomic Energy Commission itself, where Commissioners Gordon Dean and Lewis Strauss were the chief advocates of the hydrogen bomb project, while the then- chairman, David E. Lilienthal, led the oppostion to it. The service department leaders naturally supported Dean and Strauss, but the State Department adopt- ed what can best be described as a hand- wringing attitude. This debate, which was as usual carried on in whispers behind closed doors, might have dragged on almost indefinitely if these reporters had not brought this vital national issue into the open. President Truman then announced, some- what ambiguously, that he had ordered the Atomic Energy Commission to "continue" its work on the hydrogen bomb (which had until this time been confined to pure re- search). Shortly thereafter, Gordon Dean re- placed David Lilienthal at the head of the A.E.C.; Dean secured from Truman a "first priority" for the hydrogen bomb prospect. The needful appropriations were requested under the first shock of the Korean war. And the attempt to build a hydrogen bomb was at last started in earnest. When this attempt was about to cul- minate in the Eniwetok tests, another intra- governmental debate began behind the pa- per curtain. It was known, of course, that the Soviet intelligence, with all its formid- able detection apparatus, would learn the power and character of our new bomb shortly after its explosion. Air samples of the dust cloud, data from Geiger counters, seismographs and other sources, would be quite enough to tell the Kremlin's experts the salient facts, without the slightest as- sistance from classified sources. The ques- tion now was, whether to tell the American people and our allies the same facts the Soviets would soon know. The Atomic Energy Commission, which best understands the opportunities of the Soviet intelligence, favored the most lib- eral policy. Chairman Dean in fact urged that the State Department treat the Eni- wetok test as the epoch-making event that it was, using it, perhaps, as the spring- board for some new diplomatic initiative. But State was again indecisive, while the leaders of the Defense Department urged total concealment. In these circumstances, there probably would have been no disclosure of any sort CLC Statement .**, To the Editor: THE MENTION of the Civil Lib- erties Committee in Zander Hollander's series on Communist infiltration demands a more ac-' curate explanation of the activi- ties and makeup of C.L.C. since its inception one and a half years ago. We feel that such a description is fitting for three main reasons: 1) It will show the obvious inter- est LYL'ers exhibit in this tpye organization; 2) It will show how their influence can be easily checked: and 3) It will clarify some misconceptions' apparent in Hollander's article. In retrospect, the club seems to have been organized for two dif- ferent purposes by two different factions. One group was on hand to stir up mischi6f; the other group was motivated by American traditions to champion civil lib- erties which they felt were under attack. Thus the birth of the Civil Liberties Committee was seeming- ly precarious, bu even then the liberal element was quite obvious- ly more powerful then the leftist one. The LYL has engaged in, we fear, a very human failing; it has inflated its ego by even listing the CLC as its child. Although, the sincere civil libertarians were in the majority, the group made mis- takes. However, these mistakes were due more to an inexperiencedt and often uninformed member-t ship, then to Communist potency in the group. -As time progressed, it became< increasingly apparent that the goals of the CLC might be serious- ly compromised by the inclusion of totalitarians. Aware members of the organization studied meth- ods by which they could remedy the situation. Contrary to Hol- lander's implication, the initiative came from within the group. The1 amendment, which was passed, ex-J cluded totalitarians from the or-t ganization. - Always the liberal element suc- ceeded in imposing its will. From the very first, every executive board has contained an aware1 majority of this element. Specific issues such as the Student Con- ference on Peace, Equality, andt Academic Freedom, the Rosenbergt case, the McPhaul dinner, ther Meisner case, and Paul Robesonl affair were resolved in favor of the liberals. These cases involved either a flat denial of a motion ort its modification. Moreover, the group sponsored Patrick Murphy Malin, a firm civil libertarian, k hence a firm anti-Communist. Mr. Hollander must be criti-I cized for not making use of first hand information by. contacting those most directly concerned withp the organization. He apparentlyi preferred to garner his facts from secondary sources. These sources were frequently from the samet groups he denounces. This infor-a mation, such as the LYL report, was accepted too unquestioningly, assuming that its claims of infil- tration into student groups are accurate. It is quite likely that the 'oft-quoted LYL report over-1 estimates LYL importance. -Joe Savin, Chairman7 for the Executive Board of CLC *+Smw _ .= wfts4"6T- P.4r the S.P.A.'s policy of pursuing peaceful alternatives. We fell that in the best interests of the student body these articles should be discontinued. --Paul Dormont, Shelly Es- trin, Art Rose, Sid Weiner Executive Committee of the S.P.A. Red Series . . To the Editor: MR. HOLLANDER in one of his recent "expose" articles stated that I, Omar Kidwell, am deeply involved in some sort of "secret" campus organizational work. He alleges that 1) I am a Labor Youth League organizer. 2) That' I attempted to organize a League club at Jackson Junior College, but that this organizational at- tempt was thwarted by govern- ment agents. 3) That I was instru- mental in the organization of the Karl Marx club on the U. of M. campus. Mr. Hollander is either grossly misinformed or possesses a fantastic imagination. He is slightly off base in his accusations for 1) I am not a La- bor Youth League organizer. 2) I never attempted to organize a League club at Jackson Junior College. 3) I had nothing to do with the organization of the Karl Marx club on this campus. I am inclined to believe that the rest of Mr. Hollander's "expose" is just as fantastic and exaggerated as the part that pertains to my own activities. -Omar Kidwell (EDITOR'S NOTE: The Daily stands behind the information revealed in Mr. Hollander's article of January 10.) * * * sent in letters discussing various campus and national issues. 3-Just before vacation, Mr. Balza Baxter, Chairman of the Michigan Labor Youth League, made an appointment to speak with several of The Daily staff at dinner. As a matter of fact, in the en- terest of revealing "secret infor- mation to the public, we would be glad to oblige Mr. Hollander if he asked us to write an article in his series. This might save him many hours of tiring research and perhaps even mak efor somewhat greater accuracy,. . e.. --Ethel Schechtman L.Y.L. (EDITORS NOTE: The Daily wel- conmes Miss Schechtman to comp for- ward with any inaccuracies she wishes to cite. * * * * Red Series . . To the Editor:! "OUR OWN TIMES . . . are warped with tensions. Some of little courage or faith from time to time lose their vision, their perspective or their balance. It is the mark of a free and edu- cated man that he preserve his poise in the midst of confusion and his confidence in an era of cri- sis and doubt." The editors of The Daily may well dwell upon these words of President Hatcher. A little reflec- tion may help them see how they have lost "their vision, their per- spective" and "their balance." For what has The Daily done? It has not simply engaged in sheer sensationalism; it has not merely forgotten the basic concepts of good taste; it has, in addition, be- come an informer. It, a student newspaper, has pointed the finger at fellow students. It has, in reali- ty, said to the university authori- ties; to the government officials and to the investigating commit- tees, "We are pure. We are clean. But these people whom we name are the guilty ones. They are the ones who should be expelled, fined, fired and jailed." Yet, what are these students guilty of? They are merely ac- cused of holding and advocating certain ideas. Ideas not acceptable to the heresy hunters, to be sure, but; nevertheless, ideas which are widely held by millions throughout the world. Today people are being told that they must not express unorthodox thoughts. Where will this all end, where will the final line be drawn? A university by its very nature r. "Shall We Dance?" They supposedly came to pho- tograph a mimeograph machine which my roommate and I have in our' apartment. This I could not allow as I am not in sole charge of the machine. They commenced to question me as if I had commit- ted a crime by having the machine in my home. Is it a crime to have a mimeograph? They wanted to know the make, model and origi- nal price of the twenty-five year old machine. They also wanted a description of all literature run through the machine, persons who had used it and was I being paid to keep it? Finally they wanted to know of my personal life and per- sons I know. Is this the' way of a campus newspaper or is it the way of a "nosey, prejudiced, fear- ridden journalistic organization" that is carrying on a hysterical search for the man who wasn't there. In trying to keep the Michigan Daily a conscientious, objective newspaper maybe it is time for a change in The Daily staff! --Valentine Birds EDITOR'S NOTE: To put out a newspaper it is necessary to coifect information. This The Daily does, consistent with its understanding of the highest journalistic practice. As one of our "hosts" agreed afterward in a telephone conversation, The Daily's visit was in accordance with the standards of common courtesy.) 1' at . 1 y rE - f Qk " S { jI i E S t must be a market place of ideas. A university which allows a com- mittee or any other body to dic- tate to it what can be taught, who can teach or who can attend classes negates the very reason for its existence. A university, there- fore, instead of accepting compla- cently an investigation, should use every means at its disposal to pre- vent one from taking place. Like- wise a student newspaper, instead of zealously beating the investi- gators to the punch, should be prepared to defend the rights of students against all such attacks. In closing I wish to comment about some of the remarks (many of them inaccurate) made about me. Though I realize that it is fashionable' to repudiate one's past, I certainly do not intend to do so. I know that when these troubled times are over I will be able to look with pride upon my past I wonder if the editors of the Daily will be able to do likewise. -Ed Shaffer (EDITOR'S NOT: The Daily wel- comes Mr. Shaffer to come forward with the "inaccuracies" to which he refers.) * * * Red Series . . To the Editor: IT SEEMS THAT certain persons on The Daily staff are preparing for brilliant careers as journalists with the Hearst newspapers. They are Crawford Young, Sid Klaus and Zander Hollander who came calling Saturday - January 10 -- and brought a photographer as mascot. It seems they have set themselves up as a self-appointed campus investigating committee with the distinct purpose of dig- ging up local gossip and using this as "fact" in their "daring exposes." Is this their demonstration of their reverence and prostitution to the princes of hearsay, gossip and scandle: McCarthy, Velde and company? Quite probably they are proving their possibilities as "rea porters" of the type needed for the fine and truthful American Press. Little Lamb . . . To the Editor: CAN'T stand Bacon for break- fast every morning, so will you please tell the members of the Daily Editorial staff to take it easy. May I suggest a little Lamb for variety? -E. M. Zale (EDITOR'S NOTE: See bottom, column three) * * * SPA Statement . . To the Editor: IN YOUR RECENT series of ar- ticles on Communist activities on the campus and in Ann Arbor, the writer has resorted to the smear technique so prevalent throughout the country. Innuendo, association, and sensationalism have replaced objectivity and truth. The atmosphere created can only intensify the attacks on stu- dents' rights, rights toward which many student groups are now working. It has been implied that the So- ciety for Peaceful Alternatives is a tool of the LYL-to quote Janu- ary 10's article " . . . League 'cadres' and their supporters have formed a sizeable bloc within the Society, exerting a dominant in- fluence through. the regularity of their presence and the unity of their votes." We can only judge whether or not the implication is valid by examining the past activities of the S.P.A. The S.P.A. has brought to campus peace movies and speakers on panels representing various programs for peace as well as student forums on prob- lems pertaining to peace. All of I] , i 1 1 7 t i 1 i l i c 1 r 1 t 1 1 a i 1 i j 1 Red Series . . To the Editor: IN A RECENT telephone conver- sation with Zander Hollander I was asked rpany questions about a mimeograph machine which is located in my apartment. I refused to answer most of those which were asked partly because I did not know the answers and partly because they were inappropriate. He also requested to take a picture of said machine. I refused to say that I would allow such a picture to be taken as I did not want the inside of our home to be used as a part of a carnival. In the course of our conversa- tion I stated that if I did not al- low the picture to be taken my name would probably be smeared. He then intimated that I was right in my presumption, but that, if I gave information whjin T don't have and told him earlier that I did not have unless I used my imagination, I would not have to worry. In other words, if I did as the Greenglasses did in naming the Rosenbergs, I would not have to worry, but would escape with a relatively light "sentence." It is very interesting that Hol- lander made the deal to keep my name clear only after he was sure that my roommate had left the room and that I was alone. -Donald E. Van Dyke (EDITOR'S NOTE: The Daily re- grets Mr. van Dyke's misunderstand- ing. The Daily does not operate on the basis of "deals.") * * * Red Series . . To the Editor: MR ZANDER HOLLANDER, aft- er months of painstaking sleuthing has finally brought us the scoop of the year. Disregard- ing all dangers, he has staunchly marched forth collecting tidbits from the various "inside" mys- terious sources! I- ? 1 DAILY OFFICIAL BULLETIN (Continued from Page 2) through Fri. at 10:30, 12:30, 3 and 4 o'clock, 4th floor, University Museums Building. Christian Science Oroganization. Tes- timonial meeting, 7:30. Upper Room. Ballet Club. Meeting tonight in Bar- bour Gym Dance Studio. Intermediates: 7:15-8:15; Beginners: 8:15-9:15. There will be an important business meeting between classes. Coming Events Political Science Round Table meet- ing Thurs., Jan. 15 in the Rackham As- semnbly Hall at 7:45 p.m. Professors Kal- tenbach and Peek will serve as joint chairmen of a student panel whose sub- ectof discussion will be "The 1952 Election." Social hour will follow the Sixty-Third Year Edited and managed by students of the University of Michigan under the authority oftihe Board in Control of Student Publications. Editorial Staff Crawford Young....Managing Editor Barnes Connable ........... City Editor Cal Samra .. .. ditorial Director Zander Hollander.... Feature Editor Sid Klaus........ Associate City Editor Harland Britz... .....Associate Editor Donna Hendleman ....Associate Editor Ed Whipple........ ......Sports Editor John Jenks......Associate Sports Editor Dick Sewel... Associate Sports Editor Lorraine Butler .......Wowen's Editor Mary Jane Mills, ASaoc. Women's Editor Business Staff Al Green.............Business Manager Milt Goets.........Advertising Manager Diane Johnston.. ..Assoc. Business Mgr. Judy Loehnberg....Finance Manager Tom Treeger.......Circulation Manager Telephone 23-24-1