From "Killing Hope" by William Blum:
Iran 1953EXCERPT...
As the prime minister had anticipated, the British did not take the nationalization gracefully, though it was supported unanimously by the Iranian parliament and by the overwhelming majority of the Iranian people for reasons of both economic justice and national pride. The Mossadegh government tried to do all the right things to placate the British: It offered to set aside 25 percent of the net profits of the oil operation as compensation; it guaranteed the safety and the jobs of the British employees; it was willing to sell its oil without disturbance to the tidy control system so dear to the hearts of the international oil giants. But the British would have none of it. What they wanted was their oil company back. And they wanted Mossadegh's head. A servant does not affront his lord with impunity.
A military show of force by the British navy was followed by a ruthless international economic blockade and boycott, and a freezing of Iranian assets which brought Iran's oil exports and foreign trade to a virtual standstill, plunged the already impoverished country into near destitution, and made payment of any compensation impossible. Nonetheless, and long after they had moved to oust Mossadegh, the British demanded compensation not only for the physical assets of the AIOC, but for the value of their enterprise in developing the oil fields; a request impossible to meet, and, in the eyes of Iranian nationalists, something which decades of huge British profits had paid for many times over.
The British attempt at economic strangulation of Iran could not have gotten off the ground without the active co-operation and support of the Truman and Eisenhower administrations and American oil companies. At the same time, the Truman administration argued with the British that Mossadegh's collapse could open the door to the proverbial communist takeover. When the British were later expelled from Iran, however, they had no alternative but to turn to the United States for assistance in toppling Mossadegh. In November 1952, the Churchill government approached Roosevelt, the de facto head of the CIA's Middle East division, who told the British that he felt that there was "no chance to win approval from the outgoing administration of Truman and Acheson.
The new Republicans, however, might be quite different."John Foster Dulles was certainly different. The apocalyptic anti-communist saw in Mossadegh the epitome of all that he detested in the Third World: unequivocal neutralism in the cold war, tolerance of Communists, and disrespect for free enterprise, as demonstrated by the oil nationalization. (Ironically, in recent years Great Britain had nationalized several of its own basic industries, and the government was the majority owner of the AIOC.) To the likes of John Foster Dulles, the eccentric Dr. Mohammed Mossadegh was indeed a madman. And when the Secretary of State considered further that Iran was a nation exceedingly rich in the liquid gold, and that it shared a border with the Soviet Union more than 1,000 miles long, he was not unduly plagued by indecision as to whether the Iranian prime minister should finally retire from public life.
CONTINUED...
http://www.thirdworldtraveler.com/Blum/Iran_KH.html Thank, amborin, for giving a damn!