Iran: Reaction, Repression, and Conflict

Reaction, Repression, and Conflict

The shah's various reform programs and the continuing poor economic conditions alienated some of the major religious and political groups, and riots occurred in mid-1963. The general political instability was reflected by the assassination of Premier Hassan Ali Mansur and an unsuccessful attempt on the shah's life in Jan., 1965. Amir Abbas Hoveida succeeded as premier. In Oct., 1971, Iran commemorated the 2500th anniversary of the Persian Achaemenid Empire of Cyrus the Great with an elaborate celebration in the desert at Persepolis. Iran's pro-Western policies continued into the 1970s; however, opposition to such growing Westernization and secularization was strongly denounced by the Islamic clergy, headed by the Ayatollah Ruhollah Khomeini, who had been exiled from Iran in 1964. Internal opposition within the country was regularly purged by the Shah's secret police force (SAVAK), created in 1957.

Improved relations in the 1970s, especially in the economic sphere, were established with Communist countries, including the USSR. However, relations with Iraq were antagonistic for much of the late 1960s and early 1970s, in great part due to conflict over the Shatt al Arab waterway. A number of armed clashes took place along the entire length of the border. In Apr., 1969, Iran voided the 1937 accord with Iraq on the control of the Shatt al Arab and demanded that the treaty, which had given Iraq virtual control of the river, be renegotiated.

In 1971, Britain withdrew its military forces from the Persian Gulf. Concerned that Soviet-backed Arab nations might try to fill the power vacuum created by the British withdrawal, Iran increased its defense budget by almost 50%, and with the help of huge U.S. and British defense programs, emerged as the region's strongest military power. Although Iran renounced all claims to Bahrain in 1970, it took control (Nov., 1971) of three small, Arab-owned islands at the mouth of the Persian Gulf. Iraq protested Iran's action by expelling thousands of Iranian nationals.

In Mar., 1973, short of the end of the 25-year 1954 agreement with the international oil-producing consortium, the shah established the NIOC's full control over all aspects of Iran's oil industry, and the consortium agreed (May, 1973) to act merely in an advisory capacity in return for favorable long-term oil supply contracts. In the aftermath of the Arab-Israeli War of Oct., 1973, Iran, reluctant to use oil as a political weapon, did not participate in the oil embargo against the United States, Europe, Japan, and Israel. However, it used the situation to become a leader in the raising of oil prices in disregard of the Tehran Agreement of 1971. Iran utilized the revenue generated by price rises to bolster its position abroad as a creditor, to initiate domestic programs of modernization and economic development, and to increase its military power.

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