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William Jordan
A focus of US Relations with Iran under the Shah
Throughout the chronicles of US relations with the Third World, Iran has always been an
exceptional example. After World War Two its hard kept role as a Middle Eastern ally to the West was
particularlyinstrumental for the US during the Cold War. Irans natural resources: namely oil served as
the mainfunction forUS-Iranianrelations.Through the complicity of the Shah of Iran, Mohammed Reza
Pahlavi, the US furthered its ties to Irans oil industry while campaigning against communism in the
Middle east. Asa resultof formerPrime MinisterMohammedMossadeq expulsion and the subsequent
pro-US government,Iran became astrategiclocationforthe US to thwart the spreadof communismand
to expand diplomatic relations in the Middle East. Above all, oil was the main cog to Americas
involvementinIran;an exchange existedbetweenthe twocountrieswhere the UStradedmilitarygoods
and intelligence for oil. Although the US was capable of building up its influence in Iran through the
Shahs administration, it faced on overwhelming challenge with the rise of Islamic nationalism. The
eventsof the Iranian revolution and the hostage crisis gave witness to the rise of Islamic resistance to
the West.
In order to establish commercial relations with the Iranian government, the United States
funded and allegedly orchestrated the overthrow of Prime Minister Mohammad Mossadeq in 1953.
DuringMossadeqstenure Iranwas in the midst of nationalizing its oil industry. The US, along with the
Britishgovernmentacted tointervene inIransoil industry.The Britishwantedtoreestablishthe flow of
revenue they once maintained through the Anglo Iranian oil company. Under a covert US supervision,
the CIA and MI6 helped shape a coup which led to the expulsion of Mossadeq through what US
intelligence called Operation Ajax. Western oil interests and a fear of communist support from the
Tudehparty (the Iranianleftwingparty) compelled the USto stepup its relationswith Iran. Mossadeqs
successor was CIA-preferred Falollah Zahedi; as prime minister he and the Shah of Iran acted in strict
accordance to US oil interests,beginningan exploitative trade of arms and intelligence for oil with the
US lasting until the 1979 revolution.
Because of the Shah the US maintainedaproductive relationship with the Iranian government.
By the 1950s and 1960s US-Iranian relations were primarily based on trade. Anti communism also
playedanimportantrole as the US and NATOadoptedthe policyof containment. The loss of Iran to the
communist camp would have been a great defeat for the US if only communism appealed to the
Mullahs. As Muslims most Iranians-save the Tudeh Party and its supporterswere appalled by the
valuesof communism.The anti-communist sentiment of most Iranians and the Shad aligned well with
the US position to stop the spread of communism in the Middle East. The US found itself an ally in the
Shah;in returnfor issolidaritythe US alsogave militaryfundingforthe Shahsarmyand his secret police
SAVAK. WithUSsupport,the Iraniangovernment became amilitaryauthorityinthe Middle Eastasthe
US sustained open access to Irans oil markets through the Arab peninsula.
Under the tenure of the Shah Iran experienced the introduction of western ideals. US leaders
contendedthat the key to advancing Irans economy was modernization. Upon executing his White
Revolution the Shah had introduced a land reform; which was an effort to purchase most of the land
from the ruling class and then sell it at 30% less to the peasantry. The lower class was enchanted by
the Shahs desire to build up agriculture. He also brought forth new reforms in profit sharing and the
privatization of governmententerprises;whichledtoagrowingclassof factoryowners and industrialist
who gave their employees part ownership (roughly 20%) of their profit and special consideration for
increased productivity. Other factors throughout the White Revolution aimed towards social reforms
such as extending the right for women to vote, which was strongly opposed by the clergy of the Shia
sect.Despite the growinganimosityof the conservative elites,withthe USsupporting the Shah Iran was
becoming part of the modernized world.
Such AmericanleadersasPresidentJohnf. Kennedy encouraged the Shah to continue his style
of leadership despite social discontent. Even if there was a growing opposition to the Shahs motives,
Americanleaderssawthemasmarginal.The positive effectsof asoundeconomywould serve as a basis
for other advances throughout the country. Kennedy urged the Iranian leader that a vigorous and
expanding economy would provide the best backstop for the basic reform programs which the Shah
had envisioned. US leaders believed that economic development would eventually lead the Shah to
triumph over the political dissent within his country. Yet contrary to the recommendations of such
leaders as JFK, many contemporary American politicians began to view the Shahs position as shaky.
Increasedresentmentfromthe clergy, the Leftandbiglandownerscontinuedasthe Shahkeptclose ties
withthe US. The peoplesperceptionof the Shah was quickly changing by 1963; the tenets of his White
Revolution hadprovedtroublingformanyIranians;particularlythose whofelt thatofficial policy should
be framedby the ayatollahs.USleadersestimatedthatanincrease economicdevelopmentwouldusher
insocial justice andequal opportunityyetthe majorityof Iranians were opposedtothe Shahsproposals;
many of them perceived his aims as a challenge to not only the power of the clergy but also the
principlesof Islam. Conflictbegantostir,mostnotably, whenthe ayatollahKhomeni lambastedthe Shah
ina lettersaying,the Americansare dishonorable;beingfriendsof the dollarandhavingnoreligion or
loyalty. (3) In his criticism of the Shahs policies, the ayatollah Khomeni crystallized a negative
perception of the US, which the majority of Iranians would later come to embrace throughout the
1970s.
In spite of muchvirulentcriticismfromthe clergy,the Shahandthe US struggledto a diplomatic
relationship. Amongstthe dissenterswerethose whoallegedthat Iran was becoming anti Arab, when a
US-Israel-Iranian alliance began to work against the Bath regime in Iraq. Many Middle Easterners
perceivedthisas anti Arabsentimentalthoughthe real motive was not anti-Arab since the alliance was
usedto crush leftistgovernment, which had aligned Iraq with the Soviet Union. At this moment it was
clearthe US beganto use itsrelationwithIranto fightagainstcommunism.Tocombatagainsta growing
increase of Arab radicalism and soviet adherence, the US and Iran supported counteractive regimes in
Northern Iraq. The Kurdistan Democratic Party was sponsored by Iran, the US and Israel to destabilize
the leftist political government in Iraq. However, in 1974 a Soviet led support of Iraq during a
counteroffensive proved too overwhelming for the Kurds. As an upshot of the Kurds defeat the Shah
made an agreement with the Bathist regime in that he would abandon the KDP in exchange for
concessions in Iraq and a curb of accepting Iranian exiles.
In light of many problems stemming from the Shahs administration of Iran, the US tried to
maintainan effective relationship and had difficulty doing so by the late 1970s. As a result of inflation
the Iranian economy was in turmoil and the Shah was inconvenienced with a growing dislike of his
leadership.A pooreconomymade the Shahnew enemies;notjustmembersof the Left,the clergyor big
land owners, but also the new middle class, workers and industrialists. This created a volatile
atmosphere forthe Shah and eventually led to his exodus. During the revolution in 1979 the US had to
find a better way of building relations with Iran. The rise of growing Islamic nationalism and US
resentmentcreatedaprofounddiscordbetweenIranandthe US that still resonates thisday.The Iranian
hostage crisis is an example of how alienated and hostile each became once the Shah left. Irans
example isaconfirmationof factthat not every facet of society will remain content with the US model
of diplomacy. Regardless of how uplifting the American involvement was supposed to be on the
economy, mostIraniansatthe time of the revolutionsaw the USas onlyconsiderate towardsthose who
served its interests.

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Iran US relations

  • 1. William Jordan A focus of US Relations with Iran under the Shah Throughout the chronicles of US relations with the Third World, Iran has always been an exceptional example. After World War Two its hard kept role as a Middle Eastern ally to the West was particularlyinstrumental for the US during the Cold War. Irans natural resources: namely oil served as the mainfunction forUS-Iranianrelations.Through the complicity of the Shah of Iran, Mohammed Reza Pahlavi, the US furthered its ties to Irans oil industry while campaigning against communism in the Middle east. Asa resultof formerPrime MinisterMohammedMossadeq expulsion and the subsequent pro-US government,Iran became astrategiclocationforthe US to thwart the spreadof communismand to expand diplomatic relations in the Middle East. Above all, oil was the main cog to Americas involvementinIran;an exchange existedbetweenthe twocountrieswhere the UStradedmilitarygoods and intelligence for oil. Although the US was capable of building up its influence in Iran through the Shahs administration, it faced on overwhelming challenge with the rise of Islamic nationalism. The eventsof the Iranian revolution and the hostage crisis gave witness to the rise of Islamic resistance to the West. In order to establish commercial relations with the Iranian government, the United States funded and allegedly orchestrated the overthrow of Prime Minister Mohammad Mossadeq in 1953. DuringMossadeqstenure Iranwas in the midst of nationalizing its oil industry. The US, along with the Britishgovernmentacted tointervene inIransoil industry.The Britishwantedtoreestablishthe flow of revenue they once maintained through the Anglo Iranian oil company. Under a covert US supervision,
  • 2. the CIA and MI6 helped shape a coup which led to the expulsion of Mossadeq through what US intelligence called Operation Ajax. Western oil interests and a fear of communist support from the Tudehparty (the Iranianleftwingparty) compelled the USto stepup its relationswith Iran. Mossadeqs successor was CIA-preferred Falollah Zahedi; as prime minister he and the Shah of Iran acted in strict accordance to US oil interests,beginningan exploitative trade of arms and intelligence for oil with the US lasting until the 1979 revolution. Because of the Shah the US maintainedaproductive relationship with the Iranian government. By the 1950s and 1960s US-Iranian relations were primarily based on trade. Anti communism also playedanimportantrole as the US and NATOadoptedthe policyof containment. The loss of Iran to the communist camp would have been a great defeat for the US if only communism appealed to the Mullahs. As Muslims most Iranians-save the Tudeh Party and its supporterswere appalled by the valuesof communism.The anti-communist sentiment of most Iranians and the Shad aligned well with the US position to stop the spread of communism in the Middle East. The US found itself an ally in the Shah;in returnfor issolidaritythe US alsogave militaryfundingforthe Shahsarmyand his secret police SAVAK. WithUSsupport,the Iraniangovernment became amilitaryauthorityinthe Middle Eastasthe US sustained open access to Irans oil markets through the Arab peninsula. Under the tenure of the Shah Iran experienced the introduction of western ideals. US leaders contendedthat the key to advancing Irans economy was modernization. Upon executing his White Revolution the Shah had introduced a land reform; which was an effort to purchase most of the land from the ruling class and then sell it at 30% less to the peasantry. The lower class was enchanted by the Shahs desire to build up agriculture. He also brought forth new reforms in profit sharing and the privatization of governmententerprises;whichledtoagrowingclassof factoryowners and industrialist who gave their employees part ownership (roughly 20%) of their profit and special consideration for
  • 3. increased productivity. Other factors throughout the White Revolution aimed towards social reforms such as extending the right for women to vote, which was strongly opposed by the clergy of the Shia sect.Despite the growinganimosityof the conservative elites,withthe USsupporting the Shah Iran was becoming part of the modernized world. Such AmericanleadersasPresidentJohnf. Kennedy encouraged the Shah to continue his style of leadership despite social discontent. Even if there was a growing opposition to the Shahs motives, Americanleaderssawthemasmarginal.The positive effectsof asoundeconomywould serve as a basis for other advances throughout the country. Kennedy urged the Iranian leader that a vigorous and expanding economy would provide the best backstop for the basic reform programs which the Shah had envisioned. US leaders believed that economic development would eventually lead the Shah to triumph over the political dissent within his country. Yet contrary to the recommendations of such leaders as JFK, many contemporary American politicians began to view the Shahs position as shaky. Increasedresentmentfromthe clergy, the Leftandbiglandownerscontinuedasthe Shahkeptclose ties withthe US. The peoplesperceptionof the Shah was quickly changing by 1963; the tenets of his White Revolution hadprovedtroublingformanyIranians;particularlythose whofelt thatofficial policy should be framedby the ayatollahs.USleadersestimatedthatanincrease economicdevelopmentwouldusher insocial justice andequal opportunityyetthe majorityof Iranians were opposedtothe Shahsproposals; many of them perceived his aims as a challenge to not only the power of the clergy but also the principlesof Islam. Conflictbegantostir,mostnotably, whenthe ayatollahKhomeni lambastedthe Shah ina lettersaying,the Americansare dishonorable;beingfriendsof the dollarandhavingnoreligion or loyalty. (3) In his criticism of the Shahs policies, the ayatollah Khomeni crystallized a negative perception of the US, which the majority of Iranians would later come to embrace throughout the 1970s.
  • 4. In spite of muchvirulentcriticismfromthe clergy,the Shahandthe US struggledto a diplomatic relationship. Amongstthe dissenterswerethose whoallegedthat Iran was becoming anti Arab, when a US-Israel-Iranian alliance began to work against the Bath regime in Iraq. Many Middle Easterners perceivedthisas anti Arabsentimentalthoughthe real motive was not anti-Arab since the alliance was usedto crush leftistgovernment, which had aligned Iraq with the Soviet Union. At this moment it was clearthe US beganto use itsrelationwithIranto fightagainstcommunism.Tocombatagainsta growing increase of Arab radicalism and soviet adherence, the US and Iran supported counteractive regimes in Northern Iraq. The Kurdistan Democratic Party was sponsored by Iran, the US and Israel to destabilize the leftist political government in Iraq. However, in 1974 a Soviet led support of Iraq during a counteroffensive proved too overwhelming for the Kurds. As an upshot of the Kurds defeat the Shah made an agreement with the Bathist regime in that he would abandon the KDP in exchange for concessions in Iraq and a curb of accepting Iranian exiles. In light of many problems stemming from the Shahs administration of Iran, the US tried to maintainan effective relationship and had difficulty doing so by the late 1970s. As a result of inflation the Iranian economy was in turmoil and the Shah was inconvenienced with a growing dislike of his leadership.A pooreconomymade the Shahnew enemies;notjustmembersof the Left,the clergyor big land owners, but also the new middle class, workers and industrialists. This created a volatile atmosphere forthe Shah and eventually led to his exodus. During the revolution in 1979 the US had to find a better way of building relations with Iran. The rise of growing Islamic nationalism and US resentmentcreatedaprofounddiscordbetweenIranandthe US that still resonates thisday.The Iranian hostage crisis is an example of how alienated and hostile each became once the Shah left. Irans example isaconfirmationof factthat not every facet of society will remain content with the US model of diplomacy. Regardless of how uplifting the American involvement was supposed to be on the
  • 5. economy, mostIraniansatthe time of the revolutionsaw the USas onlyconsiderate towardsthose who served its interests.