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After 65 Years: Mosaddegh's Speech at The Hague (June 1951)

Wednesday, June 8, 2016

On 28 April 1951, the Majlis (Parliament of Iran) named Mosaddegh as new prime minister by a vote of 79–12. Aware of Mosaddegh's rising popularity and political power, the young Shah appointed Mosaddegh to the Premiership.The new administration introduced a wide range of social reforms: Unemployment compensation was introduced, factory owners were ordered to pay benefits to sick and injured workers, and peasants were freed from forced labor in their landlords' estates.

The confrontation between Iran and Britain escalated as Mosaddegh's government refused to allow the British any involvement in Iran's oil industry, and Britain made sure Iran could sell no oil. In July, Mosaddegh broke off negotiations with AIOC after it threatened "to pull out its employees", and told owners of oil tanker ships that "receipts from the Iranian government would not be accepted on the world market. Two months later the AIOC evacuated its technicians and closed down the oil installations. Under nationalized management many refineries lacked the trained technicians that were needed to continue production. The British government announced a de facto blockade, reinforced its naval force in the Persian Gulf and lodged complaints against Iran before the United Nations Security Council.In September 1951, Britain froze Iran's sterling assets and banned export of goods to Iran. It challenged the legality of the oil nationalization and took its case against Iran to the International Court of Justice at The Hague. The court found in Iran's favor, but the dispute between Iran and the AIOC remained unsettled. Under United States pressure, the AIOC improved its offer to Iran. 

Mosaddegh explained his nationalization policy in a speech:

"...Our long years of negotiations with foreign countries… have yielded no results this far. With the oil revenues we could meet our entire budget and combat poverty, disease, and backwardness among our people. Another important consideration is that by the elimination of the power of the British company, we would also eliminate corruption and intrigue, by means of which the internal affairs of our country have been influenced. Once this tutelage has ceased, Iran will have achieved its economic and political independence.

The Iranian state prefers to take over the production of petroleum itself. The company should do nothing else but return its property to the rightful owners. The nationalization law provide that 25% of the net profits on oil be set aside to meet all the legitimate claims of the company for compensation…

It has been asserted abroad that Iran intends to expel the foreign oil experts from the country and then shut down oil installations. Not only is this allegation absurd; it is utter invention…"

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*http://www.youtube.com/watch?v=zVVYi9Y5u_k

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