THE FALL OF THE BRITISH LABOUR GOVERNMENT IN 1951, IN THE MIDST OF THE NATIONALISATION OF THE ANGLO-IRANIAN OIL COMPANY’S CRISIS.
The Attorney-General, Sir Frank Soskice, sharply criticised the basis of Morrison’s argument in international law. According to him, military force could be authorised only in the last resort, if lives were visibly in physical danger. Though the Persian Gulf squadron had been strengthened by three frigates and five destroyers from the Mediterraniean, nevertheless by the end of July the Cabinet agreed to resume negotiations with Iran. Sir Frank Soskice’s comment coincided with the American effort to end the crisis peacefully. On 1st August 1951 Lord Fraser approved the abandoning of BUCCANEER and HMS Mauritius was withdrawn from the Persian Gulf.
In the meanwhile, President Truman was making efforts to bring about a peaceful solution to the crisis. On 8th June he suggested that Averell Harriman, the Personal Advisor to the President, should visit Teheran to find a common ground for negotiations. Harriman, during his discussion with Dr. Musaddiq which took place as soon as he arrived in Teheran on 15th July, first pointed out that Iran must treat the International Court of Justice’s order with all possible consideration.
The Anglo-Iranian Oil Company, as pointed out before, in May 1951 asked for arbitration by the International Court of Justice. The Anglo-Iranian Oil Company nominated its arbitrator, Lord Radcliffe, and asked the Iranian Government to nominate its arbitrator. Dr. Musaddiq emphasised Iran’s sovereign right to nationalise its oil, a right which cannot be subjected to arbitration by an international organisation or surrendered. He rejected the Anglo-Iranian Oil Company’s request.
On the 5th July, the International Court made an order calling upon the Persian Government and the AIOC to do nothing which would aggravate the dispute, the AIOC in the meantime to be permitted to carry on their industrial and commercial operations as they had been doing prior to the 1st May under the supervision of an Anglo-Persian Board with one neutral member. On the 7th July His Majesty’s Government informed the Persian Government that they accepted the Court’s Order in full. On the 9th July the Persian Government informed the Secretary General of the United Nations that they rejected the Court’s Order.11
Then, during the course of his talks with Dr. Musaddiq in Teheran, Harriman eventually, on 24th July, persuaded him to agree to open negotiations with the British Government on the following basis:
In the case of the British Government, on behalf of the former Anglo-Iranian Oil Company, recognising the principle of the nationalisation of the oil industry in Persia, the Persian Government would be prepared to enter into negotiations with representatives of the British Government on behalf of the former Company.12
While this basis appeared to give a chance for negotiations, the British Government decided that it was unlikely that the negotiations would have a positive outcome unless the Iranian Government first undertook to improve the conditions in South Iran which had got worse in July.
Averell Harriman took the decision to fly to London in order to hold talks with the British Government. After discussions in London, Harriman returned to Iran. He had further talks with Dr. Musaddiq in Teheran. Harriman then contacted the British Government, in order to assure them that Dr. Musaddiq recognised the necessity for improving the atmosphere, particularly in South Iran, and also to explain that the Iranian Government had agreed to negotiate on the basis of the law of 20th March 1951. As was mentioned in Chapter Two, on 20th March 1951, the Majlis approved the Oil Committee’s recommendation for the nationalisation of the Anglo-Iranian Oil Company.
After the assassination of the Iranian Prime Minister, Razmara (Razmara appeared before the Oil Commission which was chaired by Dr. Musaddiq and gave a report from the Iranian technical, financial and legal experts against the nationalisation of the Anglo-Iranian Oil Company. This show of opposition to the nationalisation of the Company led to his assassination a few days later), on 7th March the
Oil Commission lost no time in passing its resolution ‘accepting the proposal that oil should be nationalised throughout Persia’ and requesting an extension of the Commission’s mandate for two months for examination of the principle of nationalisation. The Majlis agreed to consider this resolution as a matter of ‘double urgency’ and it was approved by both Houses by the 20th March.13
- PRO, London, CAB 129/47 CP (51), 257, Memorandum by Herbert Morrison on the dispute with Persia, Secret, 26th September 1951, p. 8.
- Ibid.
- Ibid, p. 5.
