Britain and the Abadan Crisis, 1950-51

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TABLE OF CONTENTS Page Chapter I

The Background of British Enterprise in Persia, 1901-47

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1. The Persian Setting and the D’Arcy Concession Strategic importance of Persia and origins of Anglo-Russian rivalry there—Persian oil struck in 1908—Mr Winston Churchill stimulates governmental purchase of controlling interest in Anglo-Persian Oil Company and Bradbury Letter of 1914 defines its relationship with His Majesty’s Government—the Armitage-Smith royalty agreement of 1920—declining British influence in Persia and the Soviet Persian Treaty of 1921.

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2. Cancellation of D’Arcy Concession and negotiation of the Concession of 1933 Firm reaction of His Majesty’s Government to arbitrary Persian cancellation—the dispute brought before the League of Nations (1932)—Reza Shah intervenes to reach agreement with Anglo-Persian Oil Company (1933)—benefits for Persia and safeguards for AngloPersian Oil Company in 1933 agreement—increased American stake in expanding Middle East oil production.

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3. Allied occupation of Persia in the Second World War and the Aftermath Anglo-Russian intervention in Persia and abdication of Reza Shah (1941)—anti-British reactions in Persia—Dr Musaddiq opposes Russian demand for oil concession (1944)—President Truman’s strong diplomacy facilitates Persian negotiation of Russian evacuation of Azerbaijan (1946)—the Majlis oil law of 1947 a potential threat to Anglo-Iranian Oil Company—British show of force from India during riots at Abadan (1946).

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4. The post-war position of the Anglo-Iranian Oil Company in Persia Mr Bevin urges reform of relationships between His Majesty’s Government, Anglo-Iranian Oil Company and Persian Government (1946)—attitude of His Majesty’s Government to foreign nationalisation and settlement of oil nationalisation dispute with Mexico (1947)—paternalistic social policy of Anglo-Iranian Oil Company in Persia.

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5. The post-war position of Great Britain in the Middle East British military and economic weakness relative to United States—Mr Attlee’s contested proposal for disengagement by evacuating the Middle East (1946-47)—British position there weakened by relinquishment of India and Palestine—growing American influence in Middle East during the cold war and secret Anglo-American understanding of 1947 for mutual support.

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