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Unsuccessful Attempts at solving the oil issue
On June 10^th 1951, when the provisional board was stationed in Khorramshahr, a mission headed by Basil Jackson (the deputy chairman of the Company) arrived in Iran, with proposals that were turned down because of contradictions with the oil nationalization law. The British government filed a complaint with the International Tribunal at The Hague. The Tribunal issued an interim ruling on the continuation of the operation of oil installations, calling on the Iranian government not to interfere in the Company’s affairs. Iran did not accept the ruling, because it did not recognize the court’s jurisdiction over the case.

Following the failure of the Jackson Mission, U.S. President Turman dispatched one of its senior advisors named “Harriman” to Tehran for mediation. Another mission headed by a British minister Stokes-arrived in Tehran at the same time. These talks also failed and Harriman left Tehran following Stokes. The British government, which had plans to use military force to occupy Khuzestan, dispatched its paratroopers to Cyprus and deployed several warships in Abadan waters. The U.S. opposed the move on fears of the Soviet intervention.

The Uprising of July 21st 1952
The widespread unrest forced Ghavam to stand down on July 21st 1952.This led Mosaddegh to become Prime Minister again. A month later, proposal of Churchill and Truman jointly raised a proposal to resolve the oil problem (August 27th 1952). The proposal was not accepted, because it was in violation of the principle of nationalization. Mosaddegh cut political ties with Britain to counter the British spies’ moves that had launched extensive operations under diplomatic cover.

The Coup of August 19^th 1953
   The United States’ ambassador left Tehran for Washington on May 30th 1953. In a meeting of CIA officials in Washington on June 25th 1953, the coup plan to overthrow Mosaddegh’s government was approved by the U.S. Secretary of State, Dulles. The U.S. President, Eisenhower, issued instructions for its implementation. Kermit Roosevelt, chief of CIA operations in Africa and the Middle East entered Iran through Iraq on July 19th with a counterfeit passport to implement the coup.

   Based on a decree issued by the Shah, General Fazlollah Zahedi was appointed as the Prime Minister. The organizers of the coup arrested several ministers at midnight and Brigadier Nassiri headed a convoy of military trucks and personnel carriers to inform Mosaddegh of his dismissal. Mossaddegh, who had earlier learned of coup plan, challenged their actions and brigadier Nassiri was arrested. On August 16th, the government announced that the coup has failed. Then, the Shah fled to Baghdad on a private plane. Opposition to monarchy, which was strengthened by the Tudeh party activities, spread to all parts of the country. Organizers of the coup d’ etat, however, tried again and on August 19th took the control of government offices, set party centers on fire, and occupied radio centers of the army.

The message of the new Prime Minister was broadcast from the radio, and agents of the coup raided the residence of Mossaddegh using machine guns and tanks, and set it on fire. Mossaddegh and several of his friends, who had fled to a neighbor’s house, surrendered themselves to the military commander. After a controversial trial, Mossaddegh was exiled to Ahmadabad, where he died.

The Consortium Agreement of 1954
   The coup government signed the Consortium Agreement in 1954. The Anglo-Iranian Oil Company (AIOC), which had then become British Petroleum, had 40 percent of the shares. Another 40% was owned by American oil companies. Of the remaining 20% of the shares, 14% went to ‘Royal Dutch-Shell’, and 6% to the French ‘CFP’. Financially, this agreement did not differ much from the other agreement signed in the Middle East, because Iran’s revenues would not exceed the 50% which was the basis in all of them. In addition to 10 million Pounds Sterling it received from Iran, as compensation for

Design And Programmed By: Adel Barazandeh Nia(info@irandesign.net)

History Page 6 of 9


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