Changes

====1949 - 1979====

====1949 - 1979====

In 1949 the Angelo-Persian Oil Company [[negotiate]]d an agreement with the Iranian government under which it would pay the government 25 to 30 per cent of its net profits,  The British government controlled 52 per cent of the stock of the company.  Under pressure from the Shia clergy and members of the Communist [[Tudeh party]], the Iranian government led by Prime Minister [[Mohammed Mossadegh]] did not ratify the agreement and on May 2, 1951, nationalized ownership of the oil industry.  In October Britain shut down Abadan, the world's largest refinery, on the Persian Gulf, and boycotted Iranian oil for the next two years.  30 per cent of Iran's national income previously came from oil exports.  Iranian production fell from 424,000 barrels a day in 1947 to 59,000 in 1954, while Saudi Arabia rose from 246,000 barrels to 953,000, and Kuwait from 45,000 barrels to 953,000.

In 1949 the Angelo-Persian Oil Company [[negotiate]]d an agreement with the Iranian government under which it would pay the government 25 to 30 per cent of its net profits,  The British government controlled 52 per cent of the stock of the company.  Under pressure from the Shia clergy and members of the Communist [[Tudeh party]], the Iranian government led by Prime Minister [[Mohammed Mossadegh]] did not ratify the agreement and on May 2, 1951, nationalized ownership of the oil industry.  In October Britain shut down Abadan, the world's largest refinery, on the Persian Gulf, and boycotted Iranian oil for the next two years.  30 per cent of Iran's national income previously came from oil exports.  Iranian production fell from 424,000 barrels a day in 1947 to 59,000 in 1954, while Saudi Arabia rose from 246,000 barrels to 953,000, and Kuwait from 45,000 barrels to 953,000.

[[Image:Mossadeghriot.jpg|350px|right|thumb|Rioters raise a poster of Mossadegh at the palace gates of the Shah in August, 1953.]]

[[Image:Mossadeghriot.jpg|350px|right|thumb|Protesters raise a poster of Mossadegh at the palace gates of the Shah in August, 1953.]]

In January 1953 the Iranian parliament extended Mossadegh's dictatorial powers. The following month, Mossadegh denounced the Shah for intrigues with "foreign interests".  On February 28 the Shah announced he would abdicate "for reasons of health".  Serious riots followed when the Shah's supporters clashed with Mossadegh's supporters in the streets.  The Shah canceled his plan of abdication.  Meanwhile, the United States ambassador presented proposals to end the impasse with the United Kingdom, one proposal was for a consortium of oil companies to replace Anglo-Iranian Oil Company and buy from Iran's nationalized industry.  Mossadegh rejected the suggestion and continued to complain about the boycott.

In January 1953 the Iranian parliament extended Mossadegh's dictatorial powers. The following month, Mossadegh denounced the Shah for intrigues with "foreign interests".  On February 28 the Shah announced he would abdicate "for reasons of health".  Serious riots followed when the Shah's supporters clashed with Mossadegh's supporters in the streets.  The Shah canceled his plan of abdication.  Meanwhile, the United States ambassador presented proposals to end the impasse with the United Kingdom, one proposal was for a consortium of oil companies to replace Anglo-Iranian Oil Company and buy from Iran's nationalized industry.  Mossadegh rejected the suggestion and continued to complain about the boycott.