COLD WAR

World War II: The End of Reza Shah’s Reign The end of Reza Shah’s rule came during World War II. Because his tilt toward the Nazis threatened Allied supply lines to Russia. The British and Russian invaded Iran in August 1941 and forced Reza Shah to abdicate in September 1941. They then engineered his replacement by his Swiss-educated son, Mohammed Reza. To prevent the new shah from following his father’s independent course, the Allies made sure to limit his power.

Socioeconomic Problems Wartime period saw a growth of economic problems, such as inflation and famine. Gap between the poor masses and privileged few widened in the war years. Such problems continued in the second half of the 1940s. Wheat growers, for instance, were hurt by a decline in prices and heavy tax burdens. Many peasant families lost their lands to money lenders and big landowners.

Mohammed Mossadegh

The National Front and Oil Question Elections to a new majlis in 1950, centered around oil. The National Front, a coalition of nationalist groups and parties, secured major gains. In 1951, the Majlis attempted to extract a better profit sharing deal from the British and the British rejected the offer. In response, in May 1951, the parliament voted to nationalize Iran’s oil resources. As a matter of fact Mossadegh took Reza Shah’s program of industrialization to its extreme, advocating the establishment of an “oilless” economy. He attempted to finance an industrialization program by seizing control of foreign assets in his country and using revenues from those assets to foster development.

Reactions to Nationalization The British began a concerted campaign to undo Iran’s action. This campaign involved persuading world oil companies not to buy nationalized Iranian oil. After some failed attempts at mediation, the US was increasingly hostile to nationalization. The US administration was convinced that Iran was falling into communist hands. As an outcome, the United States began to play an active role in the attempts to undermine the existing government in Iran. Great Britain and the US used their considerable influence inside Iran, built up over many decades of cultivating clients, supporters, and agents to covertly undermine Mossadegh’s government.

Popular Support for Mossadegh Despite the coalition of some Iranian and international political actors, Mossadegh and his policies enjoyed popular support in the country. In July 1952, after a conflict between the shah and prime minister, huge demonstrations in support of the prime minister were organized. Among the demonstrators were artisans, merchants, religious scholars, university students, industrial workers, and white-collar professionals. These demonstrations frightened the shah and he ultimately fled to Rome.

Military Coup in 1953 In July 1952, the prime minister took some steps that actually bypassed the parliament. He asked and obtained from the parliament some delegated powers to enact a number of bills. In July 1953, suspecting that Britain and America were at work among the Majlis deputies to create a majority againts him, the prime minister decided to dissolve the Majlis by a referendum and hold fresh elections. These actions fragmented the coalition that had supported him. With the help of British and the US intelligence anti-Mossadegh fervor grew. Finally, in August 1953, the army seized the control and restored shah