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On July 19 Mossadegh disolved the Majlis and called for a plebiscite on August 2.  The Tudeh party, which was staging violent demonstrations in the streets, by the end of July openly supported Mossadegh while the [[Soviet Union]] offered desperately needed economic assistance.  Mossadegh received 99.4 per cent of the vote and on August 8 Soviet Premier [[Georgy Malenkov]] told the [[Supreme Soviet]] that the Soviet Union had been conducting negotiations with Iran since June and concluded a series of agreements on border, aid, and trade issues.  The Shah, who still held the position of [[Head of State]], asked for the resignation of the government and appointed a successor.
 
On July 19 Mossadegh disolved the Majlis and called for a plebiscite on August 2.  The Tudeh party, which was staging violent demonstrations in the streets, by the end of July openly supported Mossadegh while the [[Soviet Union]] offered desperately needed economic assistance.  Mossadegh received 99.4 per cent of the vote and on August 8 Soviet Premier [[Georgy Malenkov]] told the [[Supreme Soviet]] that the Soviet Union had been conducting negotiations with Iran since June and concluded a series of agreements on border, aid, and trade issues.  The Shah, who still held the position of [[Head of State]], asked for the resignation of the government and appointed a successor.
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When Mossadegh received word, he began mass arrests. Two days of chaos ensued. Rioters smashed statues of the Shah and his fahter and screamed, "Death to the Shah!"  With assurances from the CIA, the Iranian Army turned against the officers Mossadegh installed, and drove rioters off the streets.  On August 19, Mossadegh turned himself over to the Shah's forces and was jailed along with Tudeh leaders.  In December he was sentenced to three years in solitary confinement.  The Iranian economy and living standards of the people gradually recoverd as oil exports regained a market share which had been decimated during the previous two years.  The Shah expressed his understaing of the importance of Iran's position in the region, and the world, as a bulwark against Soviet expansionism.
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When Mossadegh received word, he began mass arrests. Two days of chaos ensued. Rioters smashed statues of the Shah and his fahter and screamed, "Death to the Shah!"  With assurances from the CIA, the Iranian Army turned against the officers Mossadegh installed, and drove rioters off the streets.  On August 19, Mossadegh turned himself over to the Shah's forces and was jailed along with Tudeh leaders.  In December he was sentenced to three years in solitary confinement.  The Iranian economy and living standards of the people gradually recoverd as oil exports regained a market share which had been decimated during the previous two years.  The Shah, who could not be seen as too close to the West because of Iran's domestic situation, nevertheless expressed his understaing of the importance of Iran's position in the region, and the world, as a bulwark against [[Containment|Soviet expansionism]].
    
===1979-1981===
 
===1979-1981===
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