To: NOW who wrote (17823 ) 4/22/2003 9:21:14 PM From: Sully- Respond to of 89467 Mossadegh and oil nationalization From 1949 on, sentiment for nationalization of Iran's oil industry grew. Politically conscious Iranians were aware that the British government derived more revenue from taxing the concessionaire, the Anglo-Iranian Oil Company (AIOC - formerly the Anglo-Persian Oil Company), than the Iranian government derived from royalties. In November 1950, the Majles committee concerned with oil matters, headed by Dr. Mohammad Mossadegh, rejected a draft agreement in which the AIOC had offered the government slightly improved terms. These terms did not include the fifty-fifty profit-sharing provision that was part of other new Persian Gulf oil concessions. Subsequent negotiations with the AIOC were unsuccessful, partly because General Ali Razmara, who became prime minister in June 1950 , failed to persuade the oil company of the strength of nationalist feeling in the country and in the Majles. When the AIOC finally offered fifty-fifty profit-sharing in February 1951, sentiment for nationalization of the oil industry had become widespread. Razmara advised against nationalization on technical grounds and was assassinated in March 1951. On March 15, the Majlis voted to nationalize the oil industry. In April the Shah yielded to Majles pressure and demonstrations in the streets by naming Mossadeq prime minister. <NOT DEMOCRATICALLY ELECTED> Oil production came to a virtual standstill as British technicians left the country, and Britain imposed a worldwide embargo on the purchase of Iranian oil. In September 1951, Britain froze Iran's sterling assets and banned export of goods to Iran. It challenged the legality of the oil nationalization and took its case against Iran to the International Court of Justice at The Hague. The court found in Iran's favor, but the dispute between Iran and the AIOC remained unsettled. Mossadeq had come to office on the strength of support from the National Front and other parties in the Majles and as a result of his great popularity <NOT DEMOCRATICALLY ELECTED>. His popularity, growing power, and intransigence on the oil issue were creating friction between the prime minister and the Shah. In the summer of 1952, the Shah refused the prime minister's demand for the power to appoint the minister of war (and, by implication, to control the armed forces). Mossadegh resigned, three days of pro-Mossadegh rioting followed, and the Shah was forced to reappoint Mossadegh to head the government <NOT DEMOCRATICALLY ELECTED>. The administration of President Truman initially had been sympathetic to Iran's nationalist aspirations. Under the administration of President Eisenhower, however, the United States came to accept the view of the British government that no reasonable compromise with Mossadegh was possible and that, by working with the Tudeh Party, Mossadegh was making probable a communist-inspired takeover. Mossadegh's intransigence and inclination to accept Tudeh support, the Cold War atmosphere, and the fear of Soviet influence in Iran also shaped United States thinking. In June 1953, the Eisenhower administration approved a British proposal for a joint Anglo-American operation, code-named Operation Ajax, to overthrow Mossadeq. Kermit Roosevelt of the CIA traveled secretly to Iran to coordinate plans with the Shah and the Iranian military, which was led by General Fazlollah Zahedi. In accord with the plan, on August 13 the shah appointed Zahedi prime minister to replace Mossadegh. Mossadegh refused to step down and arrested the Shah's emissary. This triggered the second stage of Operation Ajax, which called for a military coup. The plan initially seemed to have failed, the Shah fled the country, and Zahedi went into hiding. After four days of rioting, however, the tide turned. On August 19, pro-shah army units and street crowds defeated Mossadegh's forces. The Shah returned to the country <AND RESUMED POWER AS LEADER OF IRAN AGAIN>. Mossadegh was sentenced to three years' imprisonment for trying to overthrow the monarchy, but he was subsequently allowed to remain under house arrest in his village outside Tehran until his death in 1967. His minister of foreign affairs, Hoseyn Fatemi, was sentenced to death and executed. Hundreds of National Front leaders, Tudeh Party officers, and political activists were arrested; several Tudeh army officers were also sentenced to death. persepolis.free.fr