Undercurrent of Distrust of West, Russia, Israel, Marks Arab Policy

Below the stormy surface of Middle Eastern unrest are Arab fears of Western exploitation, Russian aggression, and Israeli expansion, according to Sir Reader W. Bullard, former British Ambassador to Iran.

He feels, however, that these fears have been generally overstressed by hyper-nationalists, religious fanatics, and Communist agitators.

Despite rampant rumors of a Communist revolution in Iran, "Mossadegh doesn't really think it's as near as he pretends."

What he is actually aiming at is independence and "neutrality." Bullard explained that the Russians for years have been trying to get oil rights in Iran. The Iranians have consistently refused, while uneasily granting those rights to the British. Nationalization and neutrality are considered the answer to this dilemma.

"Mossadegh counts on Western aid if he should be attacked by Russia," Bullard declared.

Once the Iranians agree to submit the question of Anglo-Iranian Co. compensation to arbitration under the International Court, the British will favor purchase of Persion oil by any interested firms. In fact, Anglo-Iranian is prepared to go ahead and buy ten million tons a year, itself.

Bullard, whose 40 years in the diplomatic service includes work in Russia, Iran, Turkey, Ethiopia, and Saudi Arabia, is currently director of Middle Eastern studies at Oxford University.