The Oily Americans

WHY THE WORLD DOESN'T TRUST THE U.S. ABOUT PETROLEUM: A HISTORY OF MEDDLING

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It was anything but. When Mossadegh delayed settling with Anglo-Iranian on the takeover of the company, the British approached the CIA with a plan to remove the Premier and get Britain's oil back. The British could not do it alone, since they had left Iran. Allen Dulles, the CIA director, and his brother John Foster Dulles, the Secretary of State, agreed. The Dulles brothers assigned the task of overseeing the clandestine venture to Kermit Roosevelt, a longtime intelligence operative and the grandson of President Theodore Roosevelt.

In the months leading up to the coup, Roosevelt spent much of his time in Tehran, coordinating efforts of CIA agents and Iranian sympathizers. To ensure the cooperation of a then indecisive Shah, the CIA turned to one of his old friends, General Schwarzkopf, who in 1942-48 worked with an internal-security force under palace command that helped the Shah maintain rule.

The CIA's fingerprints were everywhere. Operatives paid off Iranian newspaper editors to print pro-Shah and anti-Mossadegh stories. They produced their own stories and editorial cartoons and published fabricated interviews. They secured the cooperation of the Iranian military. They spread antigovernment rumors. They prepared phony documents to show secret agreements between Mossadegh and the local Communist Party. They masqueraded as communists, threatened conservative Muslim clerics and even staged a sham fire-bombing of the home of a religious leader. They incited rioters to set fire to a pro-Mossadegh newspaper. They stage-managed the appearance of Mossadegh's successor, General Zahedi, whose personal bank account they fattened.

With Mossadegh gone, British Petroleum returned to the Iranian oil fields. Some newcomers tagged along. They included five American companies, the ancestors of today's ExxonMobil and ChevronTexaco. Meanwhile, the U.S. government opened the foreign-aid spigot. Over the next 25 years, more than $20 billion in U.S. taxpayers' money would pour into a decidedly undemocratic Iran, most of it military aid and subsidized weapons sales for the Shah's armed forces and SAVAK, his secret police. As for American oil companies, they would extract 2 billion bbl. of oil from their new Iranian fields. But the access came with a stiff price tag in U.S. government dollars and Iranian lives. And the Shah's oppression led to the establishment of the first American-hating Islamic republic, when the Shi'ite Muslim clerics duped by the CIA overthrow of Mossadegh masterminded their own takeover in 1979, installing the Ayatullah Ruhollah Khomeini. For two decades and counting, American oil companies have been barred by the U.S. government from doing business with Iran. Now the Shi'ites are seeking to turn Iraq into an Islamic republic.

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