THE ANGLO–IRANIAN OIL COMPANY’S CRISIS MORE CRUCIAL THAN THE SUEZ CANAL CRISIS: BRITISH LIMITATION: NOT LEARNING A LESSON!
The coming to office of the Republican President Eisenhower in 1953 brought about a shift in the United States’ policy towards the Iranian crisis. The new Republican Administration of Eisenhower was considerably more worried about the Communist threat. In view of the support that the Iranian Government was receiving from the Tudeh Party (the Iranian Communist Party) and the fear of communism and the Soviet influence increasingly gaining ground in Iran, the United States changed its policy from one of diplomacy to confrontation The Eisenhower Administration came round to the British view that the answer to end the crisis was intervention, and the toppling of Dr. Musaddiq’s government. The United States’ policy was also helped by the winding down of the Korean War and availability of more western manpower. Additionally, in both Britain and the United States, conservative governments were now in power. Therefore, they were ideologically close to each other. Both administrations viewed the government of Dr. Musaddiq as uncompromising and too destabilising, in a part of the world with huge oil reserves, as well as its crucial strategic position, and had little sympathy with nationalism in areas where the West had vested economic and political interests. Iranian oil was vital for the Western economy. Accessibility of Iranian oil reserves to the West was of paramount importance to both Churchill and Eisenhower. Both administrations were concerned about the threat of a communist takeover in Iran. Furthermore, as Churchill and Eisenhower were wartime comrades their friendship was warm. By 20th June 1953, the United States Government formally took Britain’s side. In a joint Anglo-American operation, by 19th August 1953 the Iranian Government was overthrown. Britain achieved her objective. The British line from the start of the Anglo- Iranian Oil Company’s crisis was to bring down the government of Dr. Musaddiq. The plan to overthrow the government of Dr. Musaddiq was in fact drawn up while the Labour Party was in office in 1951. The British Government’s view in 1952 when the Conservative Party was in power was to weaken Musaddiq’s position by any means.
The blockading of Iranian oil, and the economic sanctions by Britain led to economic crisis in Iran, which eventually in turn led to the Iranian Communist Party giving support to the government of Dr. Musaddiq. This in turn led to the shifting of the United States’ policy to the British policy, which had been from the start the removal of Dr. Musaddiq’s government. Therefore, it could be said that the British policy of economic sanctions and blockading Iranian oil acted as a prelude to bringing the United States’ policy towards the British policy, to overthrow the government of Dr. Musaddiq.
The British policy of co-operation with the United States to topple the government of Dr. Musaddiq, however, resulted in offering the Americans a share in Iranian oil. Despite the United States’ fear of a communist takeover in Iran and protection of rich Iranian oil reserves, they still wanted a share in Iranian oil as the price for their services.
In 1954 the United States participated in the new oil consortium. The United States acquired a considerable share in Iranian oil or what had been, the Anglo – Iranian Oil Company, the main British interest in the Persian Gulf. Apart from participation in the new oil consortium, the United States clearly moved in to the British sphere of influence.
In the aftermath of the nationalisation of the Anglo-Iranian Oil Company, the main British interest in the Persian Gulf, the British Government sought to safeguard the national interest of Great Britain, access to the oil reserves, and stable conditions for its production, in the Persian Gulf in the context of the rising power of the United States.
