British Diplomatic Oil Crisis: Contemporary Anglo-Saxon Geopolitical Rivalries in the Persian Gulf: Drawing a Lesson? Or Sir Anthony Eden‘s Delusion of Grandeur.

On 6th
August 1954, the Guardian wrote that the new agreement
‘should suit the interests both of Persia and of oil
producers’.56 In regard to the question of
Iran paying compensation to the Anglo-Iranian Oil Company, ‘a net
interest- free payment of £25 million in ten equal annual
instalments beginning on 1st January 1957,’
57 would be made to the AIOC by Iran. The
agreement was signed in 19th September 1954 by the Iranian
Minister of Finance and chief negotiator for Iran, Dr. Ali
Amini, and on 21st September it was put before the Majlis: On
25th September a joint Mailis-Senate oil commission was set up
to study the agreement. On 10th October the debate in the Majlis
began. On 21st October, by 113 votes to 5 with 10 abstaining,
the Majlis ratified the oil agreement. The bill passed the
Senate on 28th October. After the signing by the Shah on 29th
October 1954, the bill became law.58

Back in
July 1954, during the talks, the UK government had
authorised an offer of £5 million to Iran, ‘to further the
conclusion of a satisfactory oil agreement and to promote political
stability in Persia.’
59 After signing of the agreement in October
1954, Anthony Eden recommended a loan of £10 million to Iran,
and said, ‘now that an oil agreement had been concluded large
sterling earnings would accrue to Persia in a few year’s time
and it was in our commercial interest to secure a foothold in
the Persian market.’ 60 Eden also went
on to say ‘a tied loan of this kind would assist the recovery of
our former share of the Persian market.’
61