its all about oil !! Don'T let them make you think different !!

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its all about oil !! Don'T let them make you think different !!
by iraniantube
28-Oct-2010
 

The 1953 Iranian coup d'état, on August 19, 1953 (and called the 28 Mordad coup d'état in Iran),
was the overthrow of the democratically elected government of Iranian Prime Minister Mohammad
Mosaddegh by the intelligence agencies of the United Kingdom and the United States.The crushing
of Iran's first democracy launched 25 years of dictatorship under Mohammad-Rezā Shāh Pahlavi, who
relied heavily on U.S. weapons to hold on to power until he was overthrown in February 1979.
For many Iranians, the coup demonstrated duplicity by the United States, which presented itself
as a defender of freedom but did not hesitate to
use underhanded methods to overthrow a democratically elected government to suit its own economic
and strategic interests", the Agence France-Presse reported.
In 1951 with near unanimous support of Iran's parliament, Mosaddegh nationalized the British-owned
Anglo-Iranian Oil Company (AIOC)."The 1933 agreement under which it was operating was widely regarded
as exploitative and an infringement on Iran's sovereignty.Iran's oil was the British government's
single largest overseas investment. Moreover, the AIOC had consistently violated the terms of the 1933
agreement and was reluctant to renegotiate, even as Iran's movement for nationalization grew in the late
1940s. Even though AIOC was "highly profitable," historian Mark Gasiorowski wrote that "its Iranian
workers were poorly paid and lived in squalid conditions." Meanwhile, Gasiorowski said, the AIOC, which
was 51 percent owned by the British government, bankrolled disruptive tribal elements in Iran and some
politicians with the purpose of causing intrigue. Iranians blamed Britain for most of its problems and
public support for nationalization was very strong. Despite Mosaddegh's popular support, Britain was
unwilling to negotiate its single most valuable foreign asset, and instigated a worldwide boycott of Iranian
oil to pressure Iran economically.Initially, Britain mobilized its military to seize control of the Abadan
oil refinery, the world's largest, but Prime Minister Attlee opted instead to tighten the economic boycott.
With a change to more conservative governments in both Britain and the
United States, Churchill and the U.S. administration of Dwight D. Eisenhower decided to overthrow Iran's
government though the predecessor U.S. Truman administration had opposed a coup.
The U.S. spy agency tried to persuade Shah Mohammad Reza Pahlavi to dismiss Mosaddegh, and at first he
refused. The Central Intelligence Agency pressured the weak monarch while bribing street thugs, clergy,
politicians and Iranian army officers to take part in a propaganda campaign against Mosaddegh and his
government. At first, the coup appeared to be a failure when on the night of August 15–16, Imperial
Guard Colonel Nematollah Nassiri was arrested while attempting to arrest Mosaddegh. The Shah fled the
country the next day. On August 19, a pro-Shah mob, paid by the CIA, marched on Mosaddegh's residence.
Mosaddegh was arrested, tried and convicted of treason by the Shah's military court. On December
21, 1953, he was sentenced to solitary confinement in a jail cell in Central Teheran for three years,
then placed under house arrest for the remainder of his life. Mosaddegh's supporters were
rounded up, imprisoned, tortured or executed. The minister of Foreign Affairs and the closest associate
of Mosaddegh, Hossein Fatemi, was executed by order of the Shah's military court. The order was carried
out by firing squad on October 29, 1953. "The triumphant Shah (Pahlavi) ordered the execution of several
dozen military officers and student leaders who had been closely associated with Mohammad Mossadegh... Soon
afterward and with help from the CIA and the Israeli intelligence agency, Mossad, the shah created a secret
police force called Savak, which became infamous for its brutality."
In the wake of the coup, Britain and the U.S. selected Fazlollah Zahedi to be the next prime minister of a
military government, and Shah Pahlevi made the appointment but dismissed him two years later. Pahlevi
ruled as an authoritarian monarch for the next 26 years, until he was overthrown in a popular revolt in
1979. The tangible benefits the United States reaped from overthrowing Iran's elected government was
a share of Iran's oil wealth as well as resolute prevention of the slim possibility that the Iranian
government might align itself with the Soviet Union, although the latter motivation produces controversy
among historians as to the seriousness of the threat. Washington continually supplied arms to the
unpopular ruler, Pahlavi, and the CIA trained SAVAK, his repressive police. In Foreign Policy magazine,
former CIA agent Richard Cottam wrote that "The shah's defense program, his industrial and economic
transactions, and his oil policy were all considered by most Iranians to be faithful executions of
American instructions." The coup is widely believed to have significantly contributed to the 1979
Iranian Revolution, which deposed the Shah and replaced the pro-Western royal dictatorship with the
anti-Western Islamic Republic of Iran.

Background

Nineteenth century

Throughout the nineteenth century, Iran was caught between two advancing imperial powers, Russia, which was expanding southward into the Caucasus and central Asia, and Britain, which sought to dominate the Persian Gulf, the Red Sea, and India. Between 1801 and 1814 Iran signed treaties with Britain and France with an eye toward blocking Russian expansion. After two wars with czarist Russia, from 1804–13 and 1826–28, Iran ceded large tracts of territory to Russia, establishing the modern boundaries between those countries. Britain fought a war with Iran over Afghanistan in 1856–57 after which Afghanistan became independent. In 1892, the British diplomat George Curzon described Iran as "pieces on a chessboard upon which is being played out a game for the dominion of the world.[

In 1872, a representative of Baron Paul Reuter, founder of the news agency, met with Naser al-Din Shah Qajar and agreed to fund the Persian monarch's upcoming lavish visit to Europe in return for broadly worded concessions in Persia,[23] which was the country name through the centuries until 1935 when Reza Shah renamed it Iran. The concession the Shah had given to Reuter was never put into effect thanks to violent opposition from the Persian people and from Russia.

Early petroleum development


In 1901, Mozzafar al-Din Shah Qajar, the Shah of Persia, granted a 60-year petroleum search concession to William Knox D'Arcy. D'Arcy paid £20,000, according to journalist turned historian Stephen Kinzer, and promised equal ownership shares, with 16% of any future profit. However, the historian L.P. Elwell-Sutton wrote, in 1955, that "Persia's share was "hardly spectacular" and no money changed hands.

The (Persian) government was promised 20,000 British pounds in cash and 20,000 in shares in the first company to be formed by the concessionaire. In addition it was to receive 16 per cent of the profits made by this or any other company concerned in the concession. As it turned out D'Arcy did not even have to put his hand in his pocket. The First Exploitation Company was duly formed on May 21, 1903, with an issued capital of 500,000 British pounds in 1 pound shares, 30,000 of which were presented to the Shah and 20,000 to other "leading personalities". The additional 30,000 in shares was felt to be adequate to take the place of the promised 20,000 pounds in cash, and so no cash payment was ever made. The remainder of the shares were issued in London.

On July 31, 1907, D'Arcy withdrew from his private holdings in Persia. "A new agreement was signed under which he transferred to the Burmah Oil Company all his shares in the First Exploitation Company, and with them his last direct interest in the exploitation of oil in Persia." D'Arcy received 203,067 British pounds in cash (more than ten times what the Persian monarch was supposed to have received in cash for the concession) and D'Arcy received 900,000 shares in the Burmah Oil Company, which the historian Elwell-Sutton declared was "a large sum."

In early 1908, the British-owned Burmah Oil Company decided to end its exploration for oil in Persia but on May 26, oil came in at a depth of 1,180 feet, "a gusher that shot fifty feet or more above the top of the rig," Elwell-Sutton wrote. "So began the industry that was to see the Royal Navy through two world wars, and to cause Persia more trouble than all the political manoeuvrings of the great powers put together."

The company grew slowly until World War I, when Persia's strategic importance led the British government to buy a controlling share in the company, essentially nationalizing British oil production in Iran. It became the Royal Navy's chief fuel source during the war.

The British angered Iranians by intervening in Iranian domestic affairs including in the Persian Constitutional Revolution (the transition from dynastic to parliamentary government).

Post-World War I

The Persians were dissatisfied with the royalty terms of the British petroleum concession, the Anglo-Persian Oil Company (APOC), whereby Persia received 16 per cent of net profits.

In 1921, a military coup d'état—"widely believed to be a British attempt to enforce, at least, the spirit of the Anglo-Persian agreement" effected with the "financial and logistical support of British military personnel"—permitted the political emergence of Reza Pahlavi, whom they enthroned as the "Shah of Iran" in 1925. The Shah modernized Persia to the advantage of the British; one result was the Persian Corridor railroad for British military and civil transport during World War II.

In the 1930s, the Shah tried to terminate the APOC concession, but Britain would not allow it. The concession was renegotiated on terms again favorable to the British. On 21 March 1935, Pahlavi changed the name of the country from Persia to Iran. The Anglo-Persian Oil Company was then re-named the Anglo-Iranian Oil Company (AIOC).

World War II

In 1941, after the Nazi invasion of the USSR, the British and Commonwealth of Nations forces and the Red Army invaded Iran, to secure petroleum (cf. Persian Corridor) for the Soviet Union's effort against the Nazis on the Eastern Front and for the British elsewhere. Britain and the USSR deposed and exiled the pro-Nazi Shah Reza, and enthroned his 22-year-old son, Mohammad Reza Pahlavi, as the Shah of Iran.

The British secured the oilfields and the seaports.

Post-World War II

After the war, nationalist leaders in Iran became influential by seeking a reduction in long-term foreign interventions in their country—especially the oil concession which was very profitable for Britain and not very profitable to Iran. The British-controlled AIOC refused to allow its books to be audited to determine whether the Iranian government was being paid what had been promised. British intransigence irked the Iranian population.

U.S. objectives in the Middle East remained the same between 1947 and 1952 but its strategy changed. Washington remained "publicly in solidarity and privately at odds" with Britain, its WWII ally. Britain's empire was steadily weakening, and with an eye on international crises, the U.S. re-appraised its interests and the risks of being identified with British colonial interests. "In Saudi Arabia, to Britain's extreme disapproval, Washington endorsed the arrangement between ARAMCO and Saudi Arabia in the 50/50 accord that had reverberations throughout the region."

Britain faced the newly elected nationalist government in Iran where Mossadegh, with strong backing of the Iranian parliament, demanded more favorable concessionary arrangements, which Britain vigorously opposed.

The U.S. State Department not only rejected Britain's demand that it continue to be the primary beneficiary of Iranian oil reserves but "U.S. international oil interests were among the beneficiaries of the concessionary arrangements that followed nationalization."

U.S. reluctance to overthrow Prime Minister Mossadegh in 1951, when he was elected, faded 28 months later when Dwight D. Eisenhower was in the White House and John Foster Dulles took the helm at the State Department. "Anglo-American cooperation on that occasion brought down the Iranian prime minister and reinstated a U.S.-backed shah."

1950s

Prime minister Mohammad Mosaddegh shaking hands with Mohammad-Rezā Shāh Pahlavi

In 1951, the AIOC's resistance to re-negotiating their petroleum concession—and increasing the royalty paid to Iran—created popular support for nationalizing the company. In March, the pro-Western PM Ali Razmara was assassinated; the next month, the parliament legislated the petroleum industry's nationalization, by creating the National Iranian Oil Company (NIOC). This legislation was guided by the Western-educated Dr. Mohammad Mosaddegh, then a member of the Iranian parliament and leader of the nationalization movement; by May, the Shah had appointed Mosaddegh Prime Minister.

Mohammad Mosaddegh attempted to negotiate with the AIOC, but the company rejected his proposed compromise. Mosaddegh's plan, based on the 1948 compromise between the Venezuelan Government of Romulo Gallegos and Creole Petroleum, would divide the profits from oil 50/50 between Iran and Britain. Against the recommendation of the United States, Britain refused this proposal and began planning to undermine and overthrow the Iranian government..

That summer, American diplomat Averell Harriman went to Iran to negotiate an Anglo-Iranian compromise, asking the Shah's help; his reply was that "in the face of public opinion, there was no way he could say a word against nationalization".Harriman held a press conference in Tehran, calling for reason and enthusiasm in confronting the "nationalization crisis". As soon as he spoke, a journalist rose and shouted: "We and the Iranian people all support Premier Mosaddegh and oil nationalization!" Everyone present began cheering and then marched out of the room; the abandoned Harriman shook his head in dismay.

The National Iranian Oil Company suffered decreased production, because of Iranian inexperience and the AIOC's orders that British technicians not work with them, thus provoking the Abadan Crisis that was aggravated by the Royal Navy's blockading its export markets to pressure Iran to not nationalize its petroleum. The Iranian revenues were greater, because the profits went to Iran's national treasury rather than to private, foreign oil companies. By September 1951, the British had virtually ceased Abadan oil field production, forbidden British export to Iran of key British commodities (including sugar and steel), and had frozen Iran's hard currency accounts in British banks.

The United Kingdom took its anti-nationalization case against Iran to the International Court of Justice at The Hague; PM Mosaddegh said the world would learn of a "cruel and imperialistic country" stealing from a "needy and naked people". Representing the AIOC, the UK lost its case. In August 1952, Iranian Prime Minister Mosaddegh invited an American oil executive to visit Iran and the Truman administration welcomed the invitation. However, the suggestion upset British Prime Minister Winston Churchill who insisted that the U.S. not undermine his campaign to isolate Mosaddegh: "Britain was supporting the Americans in Korea, he reminded Truman, and had a right to expect Anglo-American unity on Iran."

In mid-1952, Britain's boycott of Iranian oil was devastatingly effective. British agents in Tehran "worked to subvert" the government of Mosaddegh, who sought help from President Truman and then the World Bank but to no avail. "Iranians were becoming poorer and unhappier by the day" and Mosaddegh's political coalition was fraying.

In the Majlis election in the spring of 1952, Mosaddegh "had little to fear from a free vote, since despite the country's problems, he was widely admired as a hero. A free vote, however, was not what others were planning. British agents had fanned out across the country, bribing candidates, and the regional bosses who controlled them. They hoped to fill the Majlis with deputies who would vote to depose Mosaddegh. It would be a coup carried out by seemingly legal means."

While the National Front, which often supported Mosaddegh won handily in the big cities, there was no one to monitor voting in the rural areas. Violence broke out in Abadan and other parts of the country where elections were hotly contested. Faced with having to leave Iran for The Hague where Britain was suing for control of Iranian oil, Mossadegh's cabinet voted to postpone the remainder of the election until after the return of the Iranian delegation from The Hague.

By mid-1953 a mass of resignations by Mossadegh's parliamentary supporters reduced parliament below its quorum. A referendum to dissolve parliament and give the prime minister power to make law was submitted to voters, and it passed with 99 percent approval, 2,043,300 votes to 1300 votes against.

While Mosaddegh dealt with political challenge, he faced another that most Iranians considered far more urgent. The British blockade of Iranian seaports meant that Iran was left without access to markets where it could sell its oil. The embargo had the effect of causing Iran to spiral into bankruptcy. Tens of thousands had lost their jobs at the Abadan refinery, and although most understood and passionately supported the idea of nationalization, they naturally hoped that Mosaddegh would find a way to put them back to work. The only way he could do that was to sell oil."

Worried about the Britain's other interests in Iran, and believing that Iran's nationalism was Soviet-backed, Britain persuaded Secretary of State John Foster Dulles that Iran was falling to the Soviets—effectively exploiting the American Cold War mindset. While President Harry S. Truman was busy fighting a war with in Korea, he did not agree to overthrow the government of Prime Minister Mohammad Mosaddegh. However, in 1953, when Dwight D. Eisenhower became president, the UK convinced him to a joint coup d'état.[33]

U.S. role

Execution of Operation Ajax

Having obtained the Shah's concurrence, the CIA team headed by Roosevelt executed the coup. Firmans (royal decrees) dismissing Mosaddegh and appointing Zahedi were drawn up by the coup plotters and signed by the Shah. On Saturday August 15, Colonel Nematollah Nassiri, the commander of the Imperial Guard, delivered to Mosaddegh a firman from the shah dismissing him. Mosaddegh, who had been warned of the plot (probably by the Tudeh party) rejected the firman as a forgery and had Nassiri arrested. In the Iranian constitutional monarchy, the Shah had no constitutional right to issue an order for the elected Prime Minster's dismissal without Parliament's consent. The action was publicized and the Shah, fearing a popular backlash, fled to Rome, Italy. After a short exile in Italy, the CIA completed the coup against Mossadegh, and returned the Shah to Iran. Alan Dulles, the director of the CIA, flew back with the Shah from Rome to Teheran. Gen. Zahedi replaced the deposed Prime Minister Mosaddegh, who was arrested, tried, and originally sentenced to death. Mosaddegh's sentence was commuted to three years' solitary confinement in a military prison, followed by house arrest until his death.

As a condition for restoring the Anglo-Iranian Oil Company, the U.S. required removal of the AIOC's monopoly; five American petroleum companies, Royal Dutch Shell, and the Compagnie Française des Pétroles, were to draw Iran's petroleum after the successful coup d'état—Operation Ajax.

As part of that, the CIA organized anti-Communist guerrillas to fight the Tudeh Party if they seized power in the chaos of Operation Ajax. Per released National Security Archive documents, Undersecretary of State Walter Bedell Smith reported that the CIA had agreed with Qashqai tribal leaders, in south Iran, to establish a clandestine safe haven from which U.S.-funded guerrillas and spies could operate.

Operation Ajax's formal leader was senior CIA officer Kermit Roosevelt, Jr., while career agent Donald Wilber was the operational leader, planner, and executor of the deposition of PM Mosaddegh. The coup d'état depended on the impotent Shah's dismissing the popular and powerful Prime Minister and replacing him with Gen. Fazlollah Zahedi, with help from Col. Abbas Farzanegan—a man agreed by the British and Americans after determining his anti-Soviet politics.

The CIA sent Major general Norman Schwarzkopf, Sr. to persuade the exiled Shah to return to rule Iran. Schwarzkopf trained the security forces that would become known as SAVAK to secure the shah's hold on power.

The coup and CIA records

The coup was carried out by the U.S. administration of Dwight D. Eisenhower in a covert action advocated by Secretary of State John Foster Dulles, and implemented under the supervision of his brother Allen Dulles, the Director of Central Intelligence. The coup was organized by the United States' CIA and the United Kingdom's MI6, two spy agencies that aided royalists and royalist elements of the Iranian army.

According to a heavily redacted CIA document released to the National Security Archive in response to a Freedom of Information request, "Available documents do not indicate who authorized CIA to begin planning the operation, but it almost certainly was President Eisenhower himself. Eisenhower biographer Stephen Ambrose has written that the absence of documentation reflected the President's style."

The CIA document then quotes from the Ambrose biography of Eisenhower:

Before going into the operation, Ajax had to have the approval of the President. Eisenhower participated in none of the meetings that set up Ajax; he received only oral reports on the plan; and he did not discuss it with his Cabinet or the NSC. Establishing a pattern he would hold to throughout his Presidency, he kept his distance and left no documents behind that could implicate the President in any projected coup. But in the privacy of the Oval Office, over cocktails, he was kept informed by Foster Dulles, and he maintained a tight control over the activities of the CIA.

CIA officer Kermit Roosevelt, Jr., the grandson of former President Theodore Roosevelt, carried out the operation planned by CIA agent Donald Wilber. One version of the CIA history, written by Wilber, referred to the operation as TPAJAX.

During the coup, Roosevelt and Wilber, representatives of the Eisenhower administration, bribed Iranian government officials, reporters, and businessmen. They also bribed street thugs to support the Shah and oppose Mosaddegh. The deposed Iranian leader, Mosaddegh, was taken to jail and Iranian General Fazlollah Zahedi named himself prime minister in the new, pro-western government.

Iranian fascists and Nazis played prominent roles in the coup regime. Gen. Fazlollah Zahedi, who had been arrested and imprisoned by the British during World War II for his attempt to establish a pro-Nazi government, was made Prime Minister on August 19, 1953. The CIA gave Zahedi about $100,000 before the coup and an additional $5 million the day after the coup to help consolidate support for the coup. Bahram Shahrokh, a trainee of Joseph Goebbels and Berlin Radio's Persian-language program announcer during the Nazi rule, became director of propaganda. Mr. Sharif-Emami, who also had spent some time in jail for his pro-Nazi activities in the 1940s, assumed several positions after 1953 coup, including Secretary General of the Oil Industry, President of the Senate, and Prime Minister (twice).

The British and American spy agencies returned the monarchy to Iran by installing the pro-western Mohammad Reza Pahlavi on the throne where his rule lasted 26 years. Pahlavi was overthrown in 1979. Masoud Kazemzadeh, associate professor of political science at the Sam Houston State University, wrote that Pahlavi was directed by the CIA and MI6, and assisted by high-ranking Shia clerics. He wrote that the coup employed mercenaries including "prostitutes and thugs" from Tehran's red light district.

The overthrow of Iran's elected government in 1953 ensured Western control of Iran's petroleum resources and prevented the Soviet Union from competing for Iranian oil. Some Iranian clerics cooperated with the western spy agencies because they were dissatisfied with Mosaddegh's secular government.

While the broad outlines of the Iran operation are known: the agency led a coup in 1953 that re-installed the pro-American Shah Mohammad Reza Pahlavi to the throne, where he remained until overthrown in 1979. "But the C.I.A.'s records were widely thought by historians to have the potential to add depth and clarity to a famous but little-documented intelligence operation," reporter Tim Weiner wrote in The New York Times May 29, 1997

"The Central Intelligence Agency, which has repeatedly pledged for more than five years to make public the files from its secret mission to overthrow the government of Iran in 1953, said today that it had destroyed or lost almost all the documents decades ago."

"A historian who was a member of the C.I.A. staff in 1992 and 1993 said in an interview today that the records were obliterated by 'a culture of destruction' at the agency. The historian, Nick Cullather, said he believed that records on other major cold war covert operations had been burned, including those on secret missions in Indonesia in the 1950s and a successful C.I.A.-sponsored coup in Guyana in the early 1960s. 'Iran—there's nothing', Mr. Cullather said. 'Indonesia—very little. Guyana—that was burned.'"

According to Donald Wilber one of the CIA officers who planned the 1953 coup in Iran wrote an account titled, Clandestine Service History Overthrow Of Premier Mossadeq of Iran: November 1952 – August 1953. Wilber said one goal of the coup was to strengthen the Shah.

In 2000, James Risen at The New York Times obtained the previously secret CIA version of the coup written by Wilber and summarized its contents, which includes the following.

In early August, the C.I.A. stepped up the pressure. Iranian operatives pretending to be Communists threatened Muslim leaders with savage punishment if they opposed Mossadegh, seeking to stir anti-Communist sentiment in the religious community. In addition, the secret history says, the house of at least one prominent Muslim was bombed by C.I.A. agents posing as Communists. It does not say whether anyone was hurt in this attack. The agency was also intensifying its propaganda campaign. A leading newspaper owner was granted a personal loan of about $45,000, in the belief that this would make his organ amenable to our purposes. But the shah remained intransigent. In an Aug. 1 meeting with General Norman Schwarzkopf, he refused to sign the C.I.A.-written decrees firing Mr. Mossadegh and appointing General Zahedi. He said he doubted that the army would support him in a showdown.

The National Security Archive at George Washington University contains the full account by Wilber along with many other coup-related documents and analysis.

U.S. motives

Historians disagree on what motivated the United States to change its policy towards Iran and stage the coup. Middle East historian Ervand Abrahamian identified the coup d'état as "a classic case of nationalism clashing with imperialism in the Third World". He states that Secretary of State Dean Acheson admitted the "'Communist threat' was a smokescreen" in responding to President Eisenhower's claim that the Tudeh party was about to assume power.

Throughout the crisis, the "communist danger" was more of a rhetorical device than a real issue—i.e. it was part of the cold-war discourse ...The Tudeh was no match for the armed tribes and the 129,000-man military. What is more, the British and Americans had enough inside information to be confident that the party had no plans to initiate armed insurrection. At the beginning of the crisis, when the Truman administration was under the impression a compromise was possible, Acheson had stressed the communist danger, and warned if Mosaddegh was not helped, the Tudeh would take over. The (British) Foreign Office had retorted that the Tudeh was no real threat. But, in August 1953, when the Foreign Office echoed the Eisenhower administration's claim that the Tudeh was about to take over, Acheson now retorted that there was no such communist danger. Acheson was honest enough to admit that the issue of the Tudeh was a smokescreen.

Abrahamian states that Iran's oil was the central focus of the coup, for both the British and the Americans, though "much of the discourse at the time linked it to the Cold War".Abrahamian wrote, "If Mosaddegh had succeeded in nationalizing the British oil industry in Iran, that would have set an example and was seen at that time by the Americans as a threat to U.S. oil interests throughout the world, because other countries would do the same." Mosaddegh did not want any compromise solution that allowed a degree of foreign control. Abrahamian said that Mosaddegh "wanted real nationalization, both in theory and practice".

Tirman points out that agricultural land owners were politically dominant in Iran, well into the 1960s and the monarch, Reza Pahlevi's aggressive land expropriation policies—to the benefit of himself and his supporters—resulted in the Iranian government being Iran's largest land owner. "The landlords and oil producers had new backing, moreover, as American interests were for the first time exerted in Iran. The Cold War was starting, and Soviet challenges were seen in every leftist movement. But the reformers were at root nationalists, not communists, and the issue that galvanized them above all others was the control of oil." The belief that oil was the central motivator behind the coup has been echoed in the popular media by authors such as Robert Byrd, Alan Greenspan, and Ted Koppel.

However, Middle East political scientist Mark Gasiorowski states that while, on the face of it, there is considerable merit to the argument that U.S. policymakers helped U.S. oil companies gain a share in Iranian oil production after the coup, "it seems more plausible to argue that U.S. policymakers were motivated mainly by fears of a communist takeover in Iran, and that the involvement of U.S. companies was sought mainly to prevent this from occurring. The Cold War was at its height in the early 1950s, and the Soviet Union was viewed as an expansionist power seeking world domination. Eisenhower had made the Soviet threat a key issue in the 1952 elections, accusing the Democrats of being soft on communism and of having "lost China." Once in power, the new administration quickly sought to put its views into practice."

Gasiorowski further states "the major U.S. oil companies were not interested in Iran at this time. A glut existed in the world oil market. The U.S. majors had increased their production in Saudi Arabia and Kuwait in 1951 in order to make up for the loss of Iranian production; operating in Iran would force them to cut back production in these countries which would create tensions with Saudi and Kuwaiti leaders. Furthermore, if nationalist sentiments remained high in Iran, production there would be risky. U.S. oil companies had shown no interest in Iran in 1951 and 1952. By late 1952, the Truman administration had come to believe that participation by U.S. companies in the production of Iranian oil was essential to maintain stability in Iran and keep Iran out of Soviet hands. In order to gain the participation of the major U.S. oil companies, Truman offered to scale back a large anti-trust case then being brought against them. The Eisenhower administration shared Truman's views on the participation of U.S. companies in Iran and also agreed to scale back the anti-trust case. Thus, not only did U.S. majors not want to participate in Iran at this time, it took a major effort by U.S. policymakers to persuade them to become involved."

In 2004, Gasiorowski edited a book on the coup arguing that "the climate of intense cold war rivalry between the superpowers, together with Iran's strategic vital location between the Soviet Union and the Persian Gulf oil fields, led U.S. officials to believe that they had to take whatever steps were necessary to prevent Iran from falling into Soviet hands." While "these concerns seem vastly overblown today" the pattern of "the 1945–46 Azerbaijan crisis, the consolidation of Soviet control in Eastern Europe, the communist triumph in China, and the Korean War—and with the Red Scare at its height in the United States"would not allow U.S. officials to risk allowing the Tudeh Party to gain power in Iran. Furthermore, "U.S. officials believed that resolving the oil dispute was essential for restoring stability in Iran, and after March 1953 it appeared that the dispute could be resolved only at the expense either of Britain or of Mosaddeq." He concludes "it was geostrategic considerations, rather than a desire to destroy Mosaddeq's movement, to establish a dictatorship in Iran or to gain control over Iran's oil, that persuaded U.S. officials to undertake the coup."

Faced with choosing between British interests and Iran, the U.S. chose Britain, Gasiorowski said. "Britain was the closest ally of the United States, and the two countries were working as partners on a wide range of vitally important matters throughout the world at this time. Preserving this close relationship was more important to U.S. officials than saving Mosaddeq's tottering regime." A year earilier, British Prime Minister Winston Churchill used Britain's support for the U.S. in the Cold War to insist the United States not undermine his campaign to isolate Mosaddegh. "Britain was supporting the Americans in Korea, he reminded Truman, and had a right to expect `Anglo-American unity` on Iran."

The two main winners of World War II who had been Allies during the war became superpowers and competitors as soon as the war ended, each with their own spheres of influence and client states. After the 1953 coup, Iran became one of the client states of the United States. In his earlier book, U.S. Foreign Policy and the Shah: Building a Client State in Iran Gasiorowski identifies the client states of the United States and of the Soviet Union between 1954–1977. Gasiorowski identified Guatemala, Nicaragua, Panama, Cambodia, Iran, Indonesia, Laos, Philippines, South Korea, South Vietnam, Taiwan as strong client states of the United States and identified those that were moderately important to the U.S. as Greece, Turkey, Bolivia, Brazil, Colombia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Haiti, Honduras, Paraguay, Liberia, Zaire, Israel, Jordan, Tunisia, Pakistan and Thailand. He identified Argentina, Chile, Peru, Ethiopia and Japan as "weak" client states of the United States.

Gasiorowski identified Bulgaria, Czechoslovakia, East Germany, Hungary, Poland, Rumania, Cuba, Mongolia and North Vietnam as "strong client states" of the Soviet Union, and he identified Guinea, Somalia, Egypt, Syria, Afghanistan and North Korea as moderately important client states. Mali and South Yemen were classified as weak client states of the Soviet Union.

According to journalist and author Steven Kinzer, for most Americans, the crisis in Iran became just part of the conflict between Communism and "the Free world." "A great sense of fear, particularly the fear of encirclement, shaped American consciousness during this period. ... Soviet power had already subdued Latvia, Lithuania, Estonia. Communist governments were imposed on Bulgaria and Romania in 1946, Hungary and Poland in 1947, and Czechoslovakia in 1948. Albania and Yugoslavia also turned to communism. Greek communists made a violent bid for power. Soviet soldiers blocked land routes to Berlin for sixteen months. In 1949 the Soviet Union successfully tested a nuclear weapon. That same year, pro-Western forces in China lost their civil war to communists led by Mao Zedong. From Washington, it seemed that enemies were on the march everywhere." Consequently, "the United States, challenged by what most Americans saw as a relentless communist advance, slowly ceased to view Iran as a country with a unique history that faced a unique political challenge." [ Some historians including Douglas Little, Abbas Milani and George Lenczowski have echoed the view that fears of a communist takeover or Soviet influence motivated the U.S. to intervene.

Blowback

According to the history based on documents released to the National Security Archive and reflected in the book Mohammad Mosaddeq and the 1953 Coup in Iran, edited by Mark J. Gasiorowski and Malcolm Byrne, the coup caused long-lasting damage to the U.S. reputation.

"The '28 Mordad' coup, as it is known by its Persian date, was a watershed for Iran, for the Middle East and for the standing of the United States in the region. The joint U.S.-British operation ended Iran's drive to assert sovereign control over its own resources and helped put an end to a vibrant chapter in the history of the country's nationalist and democratic movements. These consequences resonated with dramatic effect in later years. When the Shah finally fell in 1979, memories of the U.S. intervention in 1953, which made possible the monarch's subsequent, and increasingly unpopular, 25-year reign intensified the anti-American character of the revolution in the minds of many Iranians."

The authoritarian monarch installed in the coup appreciated the coup, Kermit Roosevelt wrote in his account of the affair. "'I owe my throne to God, my people, my army and to you!' By 'you' he [the shah] meant me and the two countries—Great Britain and the United States—I was representing. We were all heroes."

On June 16, 2000, The New York Times published the secret CIA report, "Clandestine Service History, Overthrow Of Premier Mossadeq Of Iran, November 1952 – August 1953," partly explaining the coup from CIA agent Wilber's perspective. In a related story, The New York Times reporter James Risen penned a story revealing that Wilber's report, hidden for nearly five decades, had recently come to light.

 

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