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BACKGROUND

  • Throughout the 19th century, Iran was caught between two advancing imperial powers, Russia and Britain.
  • In 1901, Mozzafar al-Din Shah Qajar granted a 60-year petroleum search concession to William Knox D'Arcy. 31 July 1907, D'Arcy withdrew from his private holdings in Persia, and transferred them to the British-owned Burmah Oil Company.
  • 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. The British angered the Persians by intervening in their domestic affairs, including in the Persian Constitutional Revolution

BACKGROUND

  • In the aftermath of World War I there was widespread political dissatisfaction with the royalty terms of the British petroleum concession, under the Anglo-Persian Oil Company (APOC), whereby Persia received 16% of "net profits".
  • In 1921, after years of severe mismanagement under the Qajar Dynasty, a coup d'état (allegedly backed by the British) brought a general, Reza Khan, into the government. By 1923, he had become prime minister, and gained a reputation as an effective politician with a lack of corruption.
  • By 1925 under his influence, Parliament voted to remove Ahmad Shah Qajar from the throne, and Reza Khan was crowned Reza Shah Pahlavi of the Pahlavi Dynasty.
  • Reza Shah began a rapid and successful modernization program in Persia, which up until that point had been considered to be among the most impoverished countries in the world.

 BACKGROUND

  • Nevertheless, Reza Shah was also a very harsh ruler who did not tolerate dissent. One such opponent was a politician named Mohammad Mosaddegh, who was jailed in 1940.
  • On 21 March 1935, Reza Shah changed the name of the country from Persia to Iran. The Anglo-Persian Oil Company was then renamed the Anglo-Iranian Oil Company (AIOC).
  • The British soldiers withdrew from Iran after the end of the war. However, under Stalin, the Soviet Union partly remained by sponsoring two "People's Democratic Republics" within Iran's borders.

OIL CRISIS

  • General Ali Razmara becomes prime minister of Iran in 1950 Support grows for the nationalization of Iran's oil industry.
  • Prime Minister Ali Razmara is assassinated. Nationalist Mohammed Mossadegh becomes prime minister in March 1951 and angers the British by wresting control of the oil industry.
  • In late 1951, Iran's Parliament in a near unanimous vote approved the oil nationalization agreement. The bill was widely popular among most Iranians, and generated a huge wave of nationalism, and immediately put Iran at loggerheads with Britain.

OIL CRISIS

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

 OPERATION AJAX

  • By 1953, economic tensions caused by the British embargo and political turmoil began to take a major toll on Mosaddegh's popularity and political power.
  • The people were increasingly blaming him for the economic and political crisis. Political violence was becoming widespread in the form of street clashes between rival political groups.
  • Mosaddegh was losing popularity and support among the working class which had been his strongest supporters. As he lost support, he became more autocratic.By mid-1953 a mass of resignations by Mosaddegh's parliamentary supporters reduced the National Front seats in Parliament.

OPERATION AJAX

  • The official pretext for the start of the coup was Mosaddegh's decree to dissolve Parliament, giving himself and his cabinet complete power to rule, while effectively stripping the Shah of his powers.
  • It resulted in him being accused of giving himself "total and dictatorial powers." The Shah, who had been resisting the CIA's demands for the coup, finally agreed to support it.
  • Having obtained the Shah's concurrence, the CIA executed the coup.

OPERATION AJAX

  • A C.I.A. study entitled "Factors Involved in the Overthrow of Mossadegh" is completed. The study concludes that a coup in Iran is possible. C.I.A. and British intelligence officers meet in Nicosia, Cyprus, to draft plans for the coup.
  • On June 10, 1953 C.I.A. officers meet in Beirut for a final review of the coup.Britain's prime minister gives final approval to the operational plan for the coup.President Eisenhower gives final approval to the operational plan for the coup.
  • The C.I.A. intensifies a propaganda effort, which included planting stories in major American newspapers, to weaken the Mossadegh government.

OPERATION AJAX

  • Aug. 15, 1953 The coup begins, but falters and then fails because Mossadegh received advanced warning of the plans. The shah flees to Baghdad.
  • Aug. 17, 1953.Gen. Zahedi announces that he is the prime minister. To support this claim, C.I.A. agents disseminate a large quantity of photographs of the royal decrees dismissing Mossadegh and appointing Zahedi.
  • Till 1954 With Zahedi acting as prime minister and the pro-Shah army units in control, hundreds of National Front leaders, communist Tudah Party officers and political activists are arrested.

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