A 'great venture': overthrowing the government of Iran
by Mark Curtis
This is a slightly abridged version of part of chapter four of Mark Curtis's book The Ambiguities of Power: British Foreign Policy since 1945 (Zed Press, 1995).
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In August 1953 a coup overthrew Iran's nationalist government of Mohammed Musaddiq and installed the Shah in power. The Shah subsequently used widespread repression and torture in a dictatorship that lasted until the 1979 Islamic revolution. The 1953 coup is conventionally regarded primarily as a CIA operation, yet the planning record reveals not only that Britain was the prime mover in the initial project to overthrow the government but also that British resources contributed significantly to the eventual success of the operation. Two first-hand accounts of the Anglo-American sponsorship of the coup - by the MI6 and CIA officers primarily responsible for it - are useful in reconstructing events. (1) Many of the secret planning documents that reveal the British role have been removed from public access and some of them remain closed until the next century - for reasons of 'national security'. Nevertheless, a fairly clear picture still emerges. Churchill later told the CIA officer responsible for the operation that he 'would have loved nothing better than to have served under your command in this great venture'. (2)
In the 1950s the Anglo Iranian Oil Company (AIOC) - later renamed British Petroleum - which was managed from London and owned by the British government and British private citizens, controlled Iran's main source of income: oil. According to one British official, the AIOC 'has become in effect an imperium in imperio in Persia'. Iranian nationalists objected to the fact that the AIOC not only made revenues from Iranian oil 'greatly in excess of the revenues of the Persian government but [it] dominates the whole economic life of Persia, and therefore impairs her independence'. (3) The AIOC was recognised as 'a great foreign organisation controlling Persia's economic life and destiny'. The British oil business fared well from this state of affairs; the AIOC made £170 million in profits in 1950 alone. (4)
Iranians could also point to AIOC's effectively autonomous rule in the parts of the country where the oilfields lay, its low wage rates and the fact that the Iranian government was being paid royalties of 10% or 12% of the company's net proceeds, whilst the British government received as much as 30% of these in taxes alone. (5) Shown the overcrowded housing afforded to some of the AIOC workers, a British official commented: 'Well, this is just the way all Iranians live'. (6)
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