The 1953 Iran Coup: How the CIA Overthrew Iran's Democracy

[00:00:00]In 1953, Iran is at a crossroads. After  decades of interference by foreign powers eager to exploit its oil reserves, the  government decides it will throw them out and take control of the country’s wealth.  But with the super powers’ Cold War paranoia and thirst for oil, it won’t be easy –  especially once the CIA gets involved.

[00:00:26]By the early 1950s, Iran has experienced decades  of upheaval. In 1921 Reza Shah Pahlavi comes to power in a British-supported coup, and begins  a program of modernizing and westernizing the country on the Turkish model, while at the same  time resisting British and Soviet influence. He also renews agreements with the Anglo-Iranian Oil  Company that give the British state-controlled firm preferential access to Iran’s oil for  extraction and sale. The Second World War brings dramatic changes: in 1941, British and  Soviet troops invade neutral Iran to get control over its oil, prevent German influence, and  open a route for military aid to the USSR. They exile Reza Shah and replace him with his son  Mohammad-Reza Pahlavi, who takes on the royal title of Shah. The Soviets also try to muscle  their way into Iranian oil in 1944, but fail.

[00:01:21]Iran’s new ruler faces a host of problems during  and after the war. He’s unpopular, not least because he represses nomadic tribes, confiscates  privately owned land for himself, and fails to meet citizens’ expectations of a better quality  of life. Many Iranians are unhappy with foreign occupation and poverty, and even after the British  and Soviet troops leave in 1946, that its oil reserves are controlled by foreign oil companies  who don’t share revenue fairly. Many of the Shah’s critics want to use oil revenue to restore Iran’s  full sovereignty and modernize the country, and the question of who will control Iranian oil sets  the stage for a major crisis in the early 1950s.

[00:02:02]Some parties support the Shah’s position, who  wants stability and to continue to benefit from the oil deal with the British. The large Communist  Tudeh party wants the Soviet Union to have some control. The Islamist terrorist movement  Fadaiyan-e Islam opposes foreign control, wants a theocracy, and assassinates several  high-ranking politicians. But the most important political force is Mohamad Mossadegh’s  National Front, a broad coalition of leftists, centrists, nationalists, and even conservative  clergymen like the influential Ayatollah Kashani.

[00:02:36]This mixed group is held together  by opposition to British influence, the wish to empower parliament at the expense of  the Shah, and the desire to bring the oil industry under Iranian state control by nationalizing it. In 1951, the parliament elects Mossadegh prime minister with a large majority. He is  a wealthy landowner and monarchist, but introduces sweeping reforms, including more  rights for workers, social security, and a tax on landowners. Mossadegh’s priority though, is  getting the British out and nationalizing oil.

[00:03:10]He demands a better profit-sharing deal and  expels some British oil company personnel, but Anglo-Iranian interrupts production. Mossadegh, with the approval of parliament, announces the nationalization  of the company in April 1951: “Long years of negotiations with foreign countries  have served no purpose. The Iranian state prefers to control its own oil production. Thanks to  the nationalization of the British company, we can combat corruption in our country. Our oil  profits will enable us to review our entire budget to fight poverty, sickness and underdevelopment.  Another important point, we will now be able to preserve our international interest from  foreign influence. The British company has nothing more to do in our country, save to return  its assets to their true owners.” (Shirali 60-61) Iran’s oil is now under its control, but Mossadegh  has made many enemies. The Shah’s supporters, landowners, and religious conservatives feel he is  too radical. Tudeh is upset the USSR has not been involved and has the support of many intellectuals  and some army officers. The Islamic extremists even try to assassinate Mossadegh, since he won’t  introduce sharia law. The economy also suffers, since there are not enough trained Iranians  to run the oil wells. Oil production falls from 241 million barrels in 1951 to just  10 million in 1952, with a corresponding and catastrophic drop in state revenue. The British are furious, as they view their oil interests in Iran as a question of  state security. London complains to the UN Security Council and the International Court of  the Hague, but neither feel the problem is within their jurisdiction. They sanction oil sales, their  forces carry out military exercises in the region, and Opposition Leader Winston Churchill even  suggests a coup. London does pressure the Shah to get rid of Mossadegh and appoint a more compliant  prime minister, and British MI6 agents secretly support anti-government protests – although the  Foreign Office sees a danger in half-measures: “Until we [the British] made it perfectly  plain that we see no possibility of reaching an agreement with Dr. Mossadegh, the  growing opposition [to] him will be unwilling to commit themselves to the point  of bringing about his overthrow” (Azimi) Meanwhile, the United States worries that conflict  between Britain and Iran might play into the hands of their Cold War rivals, the Soviets -  when in reality Moscow has a poor opinion of Mossadegh at this time. In fact the CIA has been  quietly trying to limit the Tudeh Party’s growth for several years. So President Truman sends  diplomat Averell Harriman to Iran over British objections. Many Iranians, including Mossadegh,  see the US as fairer partner than the British, especially because the US has no major economic  interests in the country. Harriman does convince the British to re-start talks, but these fail  and he blames Mossadegh for being unwilling to compromise. Still, Truman and Secretary of State  Dean Acheson are skeptical of British motives, and veto a British plan to occupy the port of Abadan. The Shah, meanwhile, fears Mossadegh’s reforms and the danger of conflict with Britain – he  even fears for the monarchy’s very existence: “The worst years of my reign, indeed of  my entire life, came when Mossadegh was Prime Minister....Every morning I awoke with the  sensation that today might be my last one on the throne.” (Zahrani 94) [MOHAMMAD REZA PAHLAVI] When Mossadegh resigns suddenly in July 1952 after an argument over who  should control the military, the Shah appoints Ahmad Qavam in his  place. Mossadegh is still popular among the people and now even some  of his political rivals are outraged: “Qavam must know that the people will not  submit to his colonialist policy. It is not by terrorizing people that he will manage to govern.  If need be, I shall call Iranians to a holy war (the jihad) against all foreigners and their  mercenaries who want to steal our country’s assets and endanger its independence.” (Shirali 62/63) Most parties support a 5-day uprising following Mossadegh’s dismissal. Dozens are killed  in the violence, but the revolt forces the Shah to re-appoint Mossadegh as Prime  Minister. Tensions have only increased, and Britain now turns to the US for help since  Iran has broken off diplomatic relations.

[00:07:49]President Eisenhower’s election in late  1952 changes US policy in the Middle East, as his administration adopts a more active  “New Look” foreign policy. President Truman had earlier supported Mossadegh, and  didn’t want to provoke Soviet intervention by getting involved. Now though, the intensity  of the Cold War, including the recent Chinese Communist victory in their civil war and the  ongoing conflict in Korea, heightens US fears about communism in Iran. There is some debate  about whether US oil interests play a role in the decision to launch the coup, but it’s more likely  the worries about Communist spread are the main motivator. Eisenhower will later share his view: “Iran’s downhill course toward Communist-supported dictatorship was picking up momentum.  For the Shah, the time had come to check that course[.]” (Balaghi 73) Iranian anti-communist political figures and some in Washington now suspect  Mossadegh of authoritarian and communist sympathies. This is how they interpret events  when Mossadegh interrupts the 1952 elections before all parliamentary seats are filled,  requests emergency powers from parliament, pushes for more centralized power, removes  unfriendly army officers, and works with Tudeh in parliament. Several National  Front allies, including Ayatollah Kashani, break with Mossadegh in protest, and it’s  possible MI6 and CIA agents have contributed to some of this internal discord as well. Meanwhile the British still want to recover their stake in the oil industry, and approach  the Americans with a plan for a coup in Iran.

[00:09:27]In November and December 1952, CIA ad MI6  agents hold secret talks. British agent “Monty” Woodhouse chooses his words carefully: “Not wishing to be accused of trying to use the Americans to pull British chestnuts out of  the fire, I decided to emphasize the Communist threat to Iran rather than the need to recover  control of the oil industry. I argued that even if a settlement of the oil dispute could be  negotiated with [Mossadegh], which was doubtful, he was still incapable of resisting a coup by the  Tudeh Party, if it were backed by Soviet support.

[00:10:03]Therefore he must be removed” (Balaghi 86) The US agrees to the plan despite the objections of some CIA officers, and Operation Ajax is born:  the CIA, MI6, the Shah (once he is informed), and some anti-Mossadegh Iranians will work together to  remove Mossadegh from power. Among these are paid agitators and informants, including journalists,  officers, and intellectuals, but some sources claim former Mossadegh ally Ayatollah Kashani  is also involved. Retired General Fazlollah Zahedi is to be the new prime minister, and the  CIA sets aside 1 million dollars for the plan, about 12 million dollars today. The main  organizer is CIA agent Kermit Roosevelt.

[00:10:50]In early 1953, anti-National Front  propaganda appears in Iran, including several new newspapers – and several  major anti-Mossadegh riots take place, especially after he dissolves parliament via a  rigged referendum. Agents also target members of parliament and army officers to turn them  against the Prime Minister. In August, Operation Ajax goes into action – an episode whose events  and interpretations are still controversial.

[00:11:20]The Shah is hesitant to move against the popular  Mossadegh openly and distrusts the British – he only agrees after reassurances from Roosevelt. On  August 15, 1953 Mohammad-Reza Pahlavi dismisses Mossadegh with a CIA-drafted decree and has  several ministers arrested. But the Shah’s decree is illegal as parliament has not approved  it, and Mossadegh is tipped off, possibly by Tudeh. Police loyal to the Prime Minster arrest  the officer of the Shah Imperial Guard who serves him with the decree. Army units are also on the  move, some to arrest Mossadegh, and others to protect him. General Hussein Fardust recalls: “Zahedi ordered to execute the plan of coup, but surprisingly, none of the military formations  moved from their locations. The Minister of Defense, General Riahi, was being informed of  the incident and the military units loyal to Mossadegh disarmed and arrested the three military  units of the coup, without a clash.” (Fardust 177) In the aftermath, chaos reigns. Forces  loyal to Mossadegh search Tehran for Zahedi, who goes into hiding at a CIA safe house. Angry  crowds tear down statues of the Shah, though it’s still debated which political or foreign forces  are behind them, and the Shah flees the country, much to the surprise of the Americans and British.  Government forces arrest suspected plotters in the military, and there are even reports Mossadegh  orders gallows erected on Sepah Square. Large Tudeh protests add to the confusion, especially  since they are likely started by Iranian CIA agents as a false flag to discredit Tudeh  before actual Tudeh supporters unknowingly join.

[00:13:09]Washington believes Operation Ajax has failed,  but Roosevelt, Zahedi and their allies try again.

[00:13:15]Roosevelt arranges for journalists to interview  Zahedi, and the clergy begins a new propaganda effort. US Defense Department official  Wilbur Eveland recalls what happens next: “On August 19 loyalist mobs were collected in  southern Tehran and were led into the modern quarters, where they swept along soldiers  and officers. General Zahedi emerged from hiding to climb into a tank and be taken  to the radio station, where he proclaimed the new government.” (Balaghi 91) The crowds are the subject of many allegations – that they are paid  by the CIA, organized by Kashani, or egged on by criminal elements. Some police and  military units join, and pro-Zahedi forces with 32 Sherman tanks besieges key points in the  city. About 300 people are killed, Zahedi’s troops arrest Mossadegh after heavy fighting  at his home, and the General proclaims himself prime minister. The Shah returns, and his courts  sentence Mossadegh to house arrest in his home village. According to Roosevelt’s later memoir,  the monarch credits the CIA agent personally: “I owe my throne to God, to my people,  my army—and to you!” (Balaghi 84) There is though, some discussion about who is  really responsible for the coup’s success. Most historians, and the CIA and MI6 agents who later  write memoirs, attribute the coup’s success to the CIA and MI6. President Eisenhower believes  Roosevelt’s version, as he confides to his diary: “Another recent development that we helped  bring about was the restoration of the Shah to power in Iran and the elimination of  Mossadegh. The things we did were ‘covert.’ If knowledge of them became public, we would  not only be embarrassed in that region, but our chances to do anything of like  nature in the future would almost totally disappear. […] I listened to [Roosevelt’s]  detailed report and it seemed more like a dime novel than an historical fact. […]  we can understand exactly how courageous our agent was in staying right on the job  and continuing to work until he reversed the entire situation.” (Eisenhower) But some point to US State Department documents that order a halt to the coup  after its initial failure, which would place more responsibility on local actors like  General Zahedi and the clergy for its success.

[00:15:38]Woodhouse even claims the CIA simply exaggerates  its role to get a budget increase from congress.

[00:15:45]In any case, Iran was now a US-friendly power.  The Shah’s government supports US interests, and opposes Soviet ones most of the time  – and the Anglo-Iranian Oil Company, soon renamed British Petroleum, resumes the  extraction and sale of Iranian oil – now joined by US companies. The success of Operation Ajax  helps encourage the US to sponsor other Cold War coup attempts in years to come – including  in Guatemala, Egypt, Indonesia, and Cuba.

[00:16:14]In Iran, the Shah and Zahedi crack down  on internal enemies – the government declares opposition parties illegal, hunt  down Islamic groups, sidelines Kashani, and represses Tudeh and the remainder of the  National Front. Another step in authoritarian rule is the creation of the Shah’s secret  police, the SAVAK, who will soon strike fear into most Iranians. US intervention based on  Cold War fears of Communism creates a powder keg in Iran. It will take more than 50 years  for future President Barack Obama to admit the US role in the 1953 coup, and by then, Iran  will have faced even more dramatic upheavals.

[00:16:55]1953 was not just a pivotal year for Iran,  but in world history. The death of Stalin marked a turning point in the Soviet Union which  wrestled with his legacy under Nikita Khrushchev.

[00:17:07]One of the lasting impacts of Stalin was  the nuclear program that matured in the last years of his rule. From the tests of Soviet  nuclear weapons to the dream of “atomic powered communism”. If you want to know more about this  topic, check out our documentary series Red Atoms which chronicles the Soviet nuclear program  from its origins in World War 2 to the Chernobyl disaster and beyond. And where can you watch Red  Atoms ad-free and in 4K resolution? On Nebula, a streaming service we’re building together with  other creators and where we don’t have to worry about the almighty algorithm or advertising  guidelines. On Nebula you can watch all our regular videos ad-free and earlier than  on YouTube plus exclusive series like Red Atoms or our World War 2 series 16 Days  in Berlin and Rhineland 45. If you head over to nebula.tv/realtimehistory you can get  an entire year of Nebula for just $36 for an entire year. Nebula is not just available  in your browser, but also on smartphones, Apple TV, Roku and more. And for those of you  that want to share everything Nebula has to offer with your family and friends, Nebula is  now offering Annual Gift Cards. Use the link gift.nebula.tv/realtimehistory to give a year  of Nebula to a friend. Whether you enjoy Nebula yourself or gift it to someone, you are directly  supporting our work here at Real Time History.

[00:18:11]We want to thank Philipp Trzaska for his help with  this episode. For more Middle Eastern history, check out our video on the Gulf War. If you  are watching this video on Patreon or Nebula, thank you so much for the support, we couldn’t  do it without you. My name is Jesse Alexander and this is a production of Real Time  History, the only history channel that refuses to pull British chestnuts out  of the fire. Kheili mamnoun, khodahafez.