The Oil Nationalization Dispute and the Coup

Torbat, Akbar E.

doi:10.1007/978-3-030-33766-7_5

The Oil Nationalization Dispute and the Coup

Akbar E. Torbat²

Chapter
First Online: 20 February 2020

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Abstract

This chapter briefly explains what Britain did in order to maintain its oil monopoly in Iran, how the U.S. joined Britain to retain Iran under the West’s domination, how eventually that period ended with a military coup in 1953, and how the nationalization was reversed by the formation of an oil consortium under the control of the Western oil companies. Since there are some analogies between the oil dispute then and the nuclear program controversy now, a brief description of oil nationalization episode is provided in this chapter. In both disputes, the oil and the nuclear, Iran wanted to preserve its sovereign right to defend its national interests versus the great powers. On both occasions, Iran was placed under economic sanctions and received threats of military force from the West; at the same time, Iran’s case was scrutinized by international legal organizations. While the West finally accomplished its foreign policy objectives in both occasions, Iran suffered defeat.

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Notes

1.
For example see Iran: The New Imperialism in Action by Bahman Nirumand Monthly Review Press, 1969; Power and Principle: Iran’s Oil Nationalization and Its Aftermath by Mostafa Elm, Syracuse University Press, 1992; Iran’s Foreign Policy by Rouhollah Ramazani; The Coup: 1953, The CIA and the Roots of Modern U.S.-Iranian Relations by Ervand Abrahamian, 2013; and All the Shah’s Men: An American Coup and the Roots of Middle East Terror by Stephen Kinzer, John Wiley & Sons, 2003.
2.
Alireza Azghandi, Ravabet Khareji Iran (Foreign Relations of Iran), Ghoomes Publishing, Tehran, 1379. For example, from 817,198 tons of crude in 1933, production increased to 32,485,331 tons in 1950, which is about 38 times increase over 17 years, p. 213.
3.
Mohammad Mosaddegh, Khaterat va Taalomat (Memoirs and Sorrows), p. 243, see for other years in Nirumand, p. 45 and p. 102. Assuming the unaudited financial records were correct, Mosaddegh said.
4.
Mosaddegh, Memoirs, p. 235. Also see Nirumand, pp. 45–48.
5.
Mosaddegh, Memoirs, p. 243.
6.
Mosaddegh, Memoirs, p. 269.
7.
Dean Acheson, Present at the Creation: My Years in the State Department, 2nd ed., W.W. Norton, 1969, p. 503, also p. 502.
8.
Ramazani, Iran’s Foreign Policy, p. 186.
9.
John M. Blair, The Control of Oil, Pantheon Books, 1976, p. 78. Also, Acheson, p. 503.
10.
Ervand Abrahamian, Iran Between Two Revolutions, pp. 263–266. Also Dean Acheson, p. 503.
11.
http://partners.nytimes.com/library/world/mideast/042851iran-oil.html.
12.
Parsa Benab, Vol. 1, p. 243, also pp. 398–405.
13.
New York Times, Premier Quits as Iran Speeds Nationalization of Oil Fields, by Michael Clark http://partners.nytimes.com/library/world/mideast/042851iran-oil.html.
14.
Daniel Yergin, The Prize: The Epic Quest for Oil, Money and Power, 1991, p. 455.
15.
Abrahamian, The Coup, p. 112.
16.
Kinzer, p. 81.
17.
New York Times, World Eyes Iran on Oil Seizure Bid by J. H. Carmical, March 25, 1951. http://partners.nytimes.com/library/world/mideast/032551iran-oil-vote.html.
18.
Anthony Sampson, The Seven Sisters, p. 121.
19.
New York Times, British Warn Iran of Serious Result if She Seizes Oil, by Clifton Daniel, May 20, 1951, http://partners.nytimes.com/library/world/mideast/052051iran-britain.html.
20.
Iran’s Foreign Policy, p. 212.
21.
Abrahamian, The Coup, pp. 108–110.
22.
Abrahamian, The Coup, p. 111.
23.
Ivanov, The Modern History of Iran. Translated by Houshang Tizabi and Hassan Ghaem Panah from Russian into Farsi entitled Tarikhi Nuvin Iran, p. 161.
24.
Abrahamian, The Coup, p. 112.
25.
Acheson, p. 509. Also Ivanov, p. 161.
26.
Bahman Nirumand, pp. 50–51.
27.
Ramazani, Iran’s Foreign Policy, p. 242.
28.
Dean Acheson, p. 507.
29.
Daniel Yergin, The Prize: The Epic Quest for Oil, Money and Power, 1991, p. 459.
30.
Abrahamian, The Coup, p. 115.
31.
Kinzer, p. 108. Also Abrahamian, The Coup, p. 113.
32.
Abrahamian, The Coup, p. 118.
33.
Ivanov, p. 164.
34.
Acheson, p. 509.
35.
Mosaddegh, p. 241, Azghandi, p. 215.
36.
Ramazani, Iran’s Foreign Policy, p. 213.
37.
Kinzer, Stephan, pp. 120–22.
38.
New York Times, Britain-Iran Talk in U. N. Is Sought by A. M. Rosenthal, September 30, 1951, http://partners.nytimes.com/library/world/mideast/093051iran-un.html.
39.
See the text of Mosaddegh’s Speech in Kinzer, pp. 123–124.
40.
Abrahamian, The Coup, p. 124.
41.
Kinzer, p. 127.
42.
Azghandi, p. 215.
43.
Abrahamian, The Coup, pp. 123–25.
44.
Mosaddegh’s Memoirs, p. 242.
45.
Kinzer, p. 128.
46.
Acheson, p. 511.
47.
Abrahamian, The Coup, p. 127. Also Kinzer, p. 132.
48.
Mosaddegh’s Memoirs, pp. 242–243.
49.
Ramazani, pp. 220–221. Also Azghandi, pp. 204–205.
50.
Abrahamian, The Coup, pp. 161–170.
51.
Stephen Kinzer, p. 110.
52.
Abrahamian, The Coup, p. 111.
53.
Azghandi, p. 214.
54.
Nirumand, p. 69.
55.
Abrahamian, The Coup, pp. 163–164.
56.
Anthony Sampson, The Seven Sisters, p. 117.
57.
Abrahamian, The Coup, p. 127.
58.
Multinational Oil: A Study in International Dynamics by Neil H. Jacoby, pp. 97–98.
59.
John Blair, p. 79.
60.
Mosaddegh’s Memoirs, p. 183.
61.
Abrahamian, The Coup, p. 157, and pp. 161–162.
62.
Abrahamian, The Coup, p. 164.
63.
Abrahamian, The Coup, p. 144 and p. 165.
64.
Bahman Nirumand, pp. 109–110.
65.
Abrahamian, The Coup, p. 164.
66.
Bahman Nirumand, p. 72.
67.
Azghandi, pp. 219–220. Also Ivanov, p. 164.
68.
Azghandi, p. 217.
69.
Abrahamian, The Coup, p. 137.
70.
Fakhreddin Azim, Iran: The Crisis of Democracy, I.B. Tauris, 2009, pp. 287–288.
71.
Mosaddegh, p. 259. Also Answer to History by Mohammad Reza Shah Pahlavi, Stein & Day Pub, 1980, p. 86.
72.
Azimi, p. 290.
73.
New York Times, Hundreds Seized in Iranian Rioting Over Ghavam Rule by Albion Ross, July 21, 1952, http://partners.nytimes.com/library/world/mideast/072152iran-riots.html.
74.
Abrahamian, The Coup, pp. 141–142. Also Ivanov, p. 165.
75.
Abrahamian, The Coup, p. 155. Also Ivanov, p. 165.
76.
Ramazani, p. 224. Also Abrahamian, The Coup, pp. 110–111.
77.
Mosaddegh, Memoirs, p. 243.
78.
Pahlavi, p. 85.
79.
Azghandi, p. 199.
80.
Ramazani, p. 230. Also Nirumand, p. 73.
81.
Azghandi, p. 219.
82.
Abrahamian, The Coup, p. 152 and p. 161.
83.
Dean Acheson, p. 507.
84.
New documents released on June 15, 2017, showed Kashani was in close communication with Americans throughout run up to the coup and had sought financial assistance from the United States. See Foreign Relations of the United States, 1952–1954, Iran, 1951–1954, https://history.state.gov/historicaldocuments/frus1951-54Iran, Kashani also supported Zahedi, https://history.state.gov/historicaldocuments/frus1951-54Iran/d187, https://history.state.gov/historicaldocuments/frus1951-54Iran/pressrelease, and 64 Years Later, CIA Finally Releases Details of Iranian Coup, http://foreignpolicy.com/2017/06/20/64-years-later-cia-finally-releases-details-of-iranian-coup-iran-tehran-oil/.
85.
Abrahamian, The Coup, p. 161 and pp. 166–67, and Nirumand, pp. 79–80.
86.
The Seven Sisters by Anthony Sampson, p. 126.
87.
Abrahamian, The Coup, p. 152 and pp. 157–158.
88.
Abrahamian, The Coup, p. 173; http://www.nytimes.com/library/world/mideast/041600iran-cia-intro.html.
89.
Kermit Roosevelt, Countercoup: The Struggle for Control of Iran, McGraw Hill Book Company, New York, 1979, p. 139.
90.
Nirumand, p. 85.
91.
Abrahamian, The Coup, pp. 189–90.
92.
Nirumand, pp. 87–88.
93.
New York Times, http://partners.nytimes.com/library/world/mideast/041600cia-iran-demo-pix.1.html.
94.
See All the Shah’s Men: An American Coup and the Roots of Middle East Terror by Stephen Kinzer, John Wiley & Sons, 2003.
95.
After 60 years, CIA officially confirmed on August 19, 2013, that it has participated in the Coup. See the article: CIA Confirms Role in 1953 Iran Coup, http://nsarchive.gwu.edu/NSAEBB/NSAEBB435/.
96.
Bahman Nirumand, p. 87.
97.
Mosaddegh’s Memoirs, p. 171.
98.
Jalil Bozorgmehr, Mohammad Mosaddegh dar Mahkameh Nezami (Muhammad Mosaddegh in Military Court), published by Nehzat Moghavamat Melli Iran, 2 volumes, 1986, see Volume 2, pp. 788–800.
99.
Bahman Nirumand, Iran: The New Imperialism in Action, Monthly Review Press, New York, 1969, Chapter 4.
100.
See Iran and the United States: A Cold War Case Study by Richard W. Cottam, University of Pittsburgh Press, 1989, Chapter 3.
101.
Stephen Kinzer, p. 2.
102.
Ramazani, Iran’s Foreign Policy, p. 261.
103.
Ivanov, p. 180.
104.
Giving the Shah Everything He Wants, by Frances FitzGerald, Harpers, November 1974.
105.
The International Petroleum Cartel, the Iranian Consortium, and the U.S. National Security, Washington, U.S. Gov. Print. Off., 1974, P. VI. Also see Sampson, p. 126.
106.
John Blair, p. 73. Also International Petroleum Cartel, pp. VI–VII.
107.
Initially was 8% but the five majors gave up each 1% of their original share to the independents.
108.
Blair, pp. 46. 43–47. See also Harvey O’Conner, pp. 329–332 and Nirumand, p. 103.
109.
Nirumand, p. 101, common royalty 1/8 of value of oil produced.
110.
The Iranian Oil Grab, by Harvey O’Connor, American Socialist, April 1955; Blair, pp. 46–47.
http://www.marxists.org/history/etol/newspape/amersocialist/amersoc_5504-a.htm.
111.
It expanded the 1933 agreement to include eight islands in the Persian Gulf, including Gheshm, Khark, Hengam, and Hormoz, and 3 mile margin was given to Consortium, pp. 182–183.
112.
Multinational Oil: A Study in International Dynamics by Neil H. Jacoby, 1975, p. 97.
113.
The text of the Consortium agreement, http://upload.wikimedia.org/wikipedia/commons/0/03/Consortium.pdf.
114.
Statements on Iran Oil Accord, The Associated Press, August 6, 1954, http://partners.nytimes.com/library/world/mideast/080654iran-statements.html.
115.
Ivanov, p. 181.
116.
“Posted price” is the price that is devised for long-term oil transactions and contracts.
117.
John Blair, The Control of Oil, p. 50.
118.
Bahman Nirumand, pp. 107–109.
119.
Nirumand, pp. 137–149.
120.
Ibid., p. 141.
121.
Gasioroswski, p. 100.
122.
The Foreign Policy of Iran, pp. 277–278.
123.
Mark J. Gasiorowski and Nikki R. Keddie, Neither East nor West: Iran, the Soviet Union, and the United States, Yale University Press, 1990, pp. 258–259.
124.
Was there a Bomb on Mattei’s Aircraft?, by Donato Firrao, Graziano Ubertalli, D. Firrao, et al., Convegno Nazionale IGF XX, Torino, pp. 24–26, Giugno, 2009, pp. 18–30, http://www.gruppofrattura.it/ocs/index.php/cigf/igf20/paper/viewFile/781/698. Also Pahlavi, p. 97.
125.
Amuzegar, Iran an Economic Profile, Middle East Institute, Washington, 1977, pp. 53–55.

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Economics & Statistics, California State University Los Angeles, Los Angeles, CA, USA
Akbar E. Torbat

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Torbat, A.E. (2020). The Oil Nationalization Dispute and the Coup. In: Politics of Oil and Nuclear Technology in Iran. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-33766-7_5

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DOI: https://doi.org/10.1007/978-3-030-33766-7_5
Published: 20 February 2020
Publisher Name: Palgrave Macmillan, Cham
Print ISBN: 978-3-030-33765-0
Online ISBN: 978-3-030-33766-7
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