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In 1961, the Francophile Mohammad Reza visited Paris to meet his favourite leader, General Charles de Gaulle of France. Mohammad Reza saw height as the measure of a man and a woman (the Shah had a marked preference for tall women) and the 6 feet 5 inches (1.96 m) de Gaulle was his most admired leader. Mohammad Reza loved to be compared to his "ego ideal" of General de Gaulle, and his courtiers constantly flattered him by calling him Iran's de Gaulle. During the French trip, Queen Farah, who shared her husband's love of French culture and language, befriended the culture minister André Malraux, who arranged for the exchange of cultural artifacts between French and Iranian museums and art galleries, a policy that remained a key component of Iran's cultural diplomacy until 1979. Many of the legitimising devices of the regime, such as the constant use of referendums, were modelled after de Gaulle's regime. Intense Francophiles, Mohammad Reza and Farah preferred to speak French rather than Persian to their children. Mohammad Reza built the Niavaran Palace, which took up 840 square metres (9,000 sq ft) and whose style was a blend of Persian and French architecture.
United States
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The Shah's diplomatic foundation was the United States' guarantee that it would protect his regime, enabling him to stand up to larger enemies. While the arrangement did not preclude other partnerships and treaties, it helped to provide a somewhat stable environment in which Mohammad Reza could implement his reforms. Another factor guiding Mohammad Reza's foreign policy was his wish for financial stability, which required strong diplomatic ties. A third factor was his wish to present Iran as a prosperous and powerful nation; this fuelled his domestic policy of Westernisation and reform. A final component was his promise that communism could be halted at Iran's border if his monarchy was preserved. By 1977, the country's treasury, the Shah's autocracy, and his strategic alliances seemed to form a protective layer around Iran.
Although the U.S. was responsible for putting the Shah in power, he did not always act as a close American ally. In the early 1960s, when the State Department's Policy Planning Staff that included William R. Polk encouraged the Shah to distribute Iran's growing revenues more equitably, slow the rush toward militarisation, and open the government to political processes, he became furious. He identified Polk as "the principal enemy of his regime." In July 1964, the Shah, Turkish President Cemal Gürsel, and Pakistani President Ayub Khan announced in Istanbul the establishment of the Regional Cooperation for Development (RCD) organisation to promote joint transportation and economic projects. It also envisioned Afghanistan's joining at some time in the future. The Shah was the first regional leader to grant de facto recognition to Israel. When interviewed on 60 Minutes by reporter Mike Wallace, he criticised American Jews for their presumed control over U.S. media and finance, saying that The New York Times and The Washington Post were so pro-Israel in their coverage that it was a disservice to Israel's own interests. He also said that the Palestinians were "bully[ing] the world" through "terrorism and blackmail". The Shah's remarks on the alleged Jewish lobby are widely believed to have been intended to pacify the Shah's Arab critics. In any case, bilateral relations between Iran and Israel were not adversely affected. In a 1967 memo to President Lyndon B. Johnson, U.S. Defense Secretary Robert McNamara wrote that "our sales [to Iran] have created about 1.4 million man-years of employment in the U.S. and over $1 billion in profits to American industry over the last five years," leading him to conclude that Iran was an arms market the United States could not do without. In June 1965, after the Americans proved reluctant to sell Mohammad Reza some of the weapons he asked for, the Shah visited Moscow, where the Soviets agreed to sell some $110 million-worth of weaponry; the threat of Iran pursuing the "Soviet option" caused the Americans to resume selling Iran weapons. Additionally, British, French, and Italian arms firms were willing to sell Iran weapons, thus giving Mohammad Reza considerable leverage in his talks with the Americans, who sometimes worried that the Shah was buying more weapons than Iran needed or could handle. The Nixon administration had no such concerns, agreeing to sell the Shah, "all available sophisticated weapons short of the atomic bomb," in May of 1972.
Arab countries
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Concerning the fate of Bahrain (which Britain had controlled since the 19th century, but which Iran claimed as its own territory) and three small Persian Gulf islands, the Shah negotiated an agreement with the British, which, by means of a public consensus, ultimately led to the independence of Bahrain (against the wishes of Iranian nationalists). In return, Iran took full control of Greater and Lesser Tunbs and Abu Musa in the Strait of Hormuz, three strategically sensitive islands which the United Arab Emirates claimed. During this period, the Shah sent one of his most trusted tribal men, Sheikh Abdulkarim Al-Faisali, and maintained cordial relations with the Persian Gulf states and established close diplomatic ties with Saudi Arabia. Mohammad Reza saw Iran as the natural dominant power in the Persian Gulf region, and tolerated no challenges to Iranian hegemony, a claim supported by a gargantuan arms-buying spree that started in the early 1960s. Mohammad Reza supported the Yemeni royalists against republican forces in the Yemen Civil War (1962–70) and assisted the sultan of Oman in putting down a rebellion in Dhofar (1971). In 1971, Mohammad Reza told a journalist: "World events were such that we were compelled to accept the fact that [the] sea adjoining the Oman Sea—I mean the Indian Ocean—does not recognise borders. As for Iran's security limits—I will not state how many kilometers we have in mind, but anyone who is acquainted with geography and the strategic situation, and especially with the potential air and sea forces, know what distances from Chah Bahar this limit can reach".
From 1968 to 1975 the Iraq deported over 60,000 Iraqis of Iranian descent into Iran, causing a rise in tensions. Iran's relations with Iraq, however, were often difficult due to political instability in the latter country. Mohammad Reza was distrustful of both the socialist government of Abd al-Karim Qasim and the Arab nationalist Ba'ath Party. He resented the internationally recognised Iran-Iraq border on the Shatt al-Arab River, which a 1937 treaty fixed on the low watermark on the Iranian side, giving Iraq control of most of the Shatt al-Arab. On 19 April 1969, the Shah abrogated the treaty, and as a result, Iran ceased paying tolls to Iraq when its ships used the Shatt al-Arab, ending Iraq's lucrative source of income. He justified his move by arguing that almost all river borders all over the world ran along the thalweg, and by claiming that because most of the ships that used the Shatt al-Arab were Iranian, the 1937 treaty was unfair to Iran. Iraq threatened war over the Iranian move, but when on 24 April 1969 an Iranian tanker escorted by Iranian warships sailed down the Shatt al-Arab without paying tolls, Iraq, being the militarily weaker state, did nothing. The Iranian abrogation of the 1937 treaty marked the beginning of a period of acute Iraqi–Iranian tension that was to last until the Algiers Accords of 1975. The fact that Iraq had welcomed the former SAVAK chief General Teymur Bakhtiar to Baghdad, where he regularly met with representatives of the Tudeh Party and the Confederation of Iranian Students, added to the difficult relations between Iran and Iraq. On 7 August 1970, Bakhtiar was badly wounded by a SAVAK assassin who shot him five times, and he died five days later; Alam wrote in his diary that Mohammad Reza rejoiced at the news.
Soviet Union
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On 7 May 1972, Mohammad Reza told a visiting President Richard Nixon that the Soviet Union was attempting to dominate the Middle East via its close ally Iraq, and that to check Iraqi ambitions would also be to check Soviet ambitions. Nixon agreed to support Iranian claims to have the thalweg in the Shatt al-Arab recognised as the border and to generally back Iran in its confrontation with Iraq. Mohammad Reza financed Kurdish separatist rebels in Iraq, and to cover his tracks, armed them with Soviet weapons which Israel had seized from Soviet-backed Arab regimes, then handed them over to Iran at the Shah's behest. The initial operation was a disaster, but the Shah continued to attempt to support the rebels and weaken Iraq. Then, in 1975, the countries signed the Algiers Accord, which granted Iran equal navigation rights in the Shatt al-Arab as the thalweg was now the new border, while Mohammad Reza agreed to end his support for Iraqi Kurdish rebels. The Shah also maintained close relations with King Hussein of Jordan, President Anwar Sadat of Egypt, and King Hassan II of Morocco. Beginning in 1970, Mohammad Reza formed an unlikely alliance with the militantly left-wing regime of Colonel Muammar Gaddafi of Libya, as both leaders wanted higher oil prices for their nations, leading Iran and Libya to join forces to press for the "leapfrogging" of oil prices.
The U.S.-Iran relationship grew more contentious as the U.S. became more dependent on Mohammad Reza as a stabilising force in the Middle East, under the Nixon Doctrine. In a July 1969 visit to Guam, President Nixon had announced the Nixon Doctrine, which declared that the United States would honour its treaty commitments in Asia, but "as far as the problems of international security are concerned ... the United States is going to encourage and has a right to expect that this problem will increasingly be handled by, and the responsibility for it taken by, the Asian nations themselves." The particular Asian nation the Nixon Doctrine was aimed at was South Vietnam, but the Shah seized upon the doctrine, with its message that Asian nations should be responsible for their own defense, to argue that the Americans should sell him arms without limitation, a suggestion that Nixon embraced. A particular dynamic was established in American-Iranian relations from 1969 onward, in which the Americans gave in to whatever Mohammad Reza demanded, as they felt they needed a strong Iran as a pro-American force in the Middle East and could not afford to lose Iran as an ally. Further adding to the Shah's confidence was the Sino-Soviet border conflict of 1969, which forced the Red Army to make a major redeployment to the Chinese border. Mohammad Reza, who always feared the prospect of a Soviet invasion, welcomed the Sino-Soviet war and the resulting reduction of Red Army divisions along the Soviet-Iranian border as giving him more room internationally.
Under Nixon, the United States finally agreed to sever all contact with any Iranians opposed to the Shah's regime, a concession that Mohammad Reza had been seeking since 1958. The often very anti-American tone of the Iranian press was ignored because Mohammad Reza supported the U.S. in the Vietnam War. Likewise, the Americans ignored the Shah's efforts to raise oil prices, even though it cost many American consumers more. After 1969, a process of "reverse leverage" set in, when Mohammad Reza began to dictate to the United States as the Americans needed him more than he needed the Americans. The American National Security Advisor Henry Kissinger wrote in 1982 that because of the Vietnam War, it was not politically possible in the 1970s for the United States to fight a major war: "There was no possibility of assigning any American forces to the Indian Ocean in the midst of the Vietnam War and its attendant trauma. Congress would have tolerated no such commitment; the public would not have supported it. Fortunately, Iran was willing to play this role." Consequently, the Americans badly needed Iran as an ally, which allowed Mohammad Reza to dictate to them. This experience greatly boosted the Shah's ego, as he felt he was able to impose his will on the world's most powerful nation.
Iran and Israel vs. Iraq
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The Americans initially rejected Mohammad Reza's suggestion that they join him in supporting the Iraqi Kurdish peshmerga fighting for independence on the grounds that an independent Kurdistan would inspire the Turkish Kurds to rebel, and they had no interest in antagonising the NATO member Turkey. Some of the Shah's advisers also felt it was unwise to support the peshmerga, saying that if the Iraqi Kurds won independence, then the Iranian Kurds would want to join them. When Nixon and Kissinger visited Tehran in May 1972, the Shah convinced them to take a larger role in what had, up to then, been a mainly Israeli-Iranian operation to aid Iraqi Kurds in their struggles against Iraq, against the warnings of the CIA and State Department that the Shah would ultimately betray the Kurds. He did this in March 1975 with the signing of the Algiers Accord that settled Iraqi-Iranian border disputes, an action taken without prior consultation with the U.S., after which he cut off all aid to the Kurds and prevented the U.S. and Israel from using Iranian territory to provide them assistance.
As a way of increasing pressure on Baghdad, the peshmerga had been encouraged by Iran and the U.S. to abandon guerrilla war for conventional war in April 1974, so the years 1974–75 saw the heaviest fighting between the Iraqi Army and the peshmerga. The sudden cut-off of Iranian support in March 1975 left the Kurds very exposed, causing them to be crushed by Iraq. The British journalist Patrick Brogan wrote that "...the Iraqis celebrated their victory in the usual manner, by executing as many of the rebels as they could lay their hands on." Kissinger later wrote in his memoirs that it was never the intention of the U.S. or Iran to see the peshmerga actually win, as an independent Kurdistan would have created too many problems for both Turkey and Iran; rather, the intention was to "irritate" Iraq enough to force the Iraqis to change their foreign policy.
Middle East oil industry
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The Shah also used America's dependence on Middle Eastern oil as leverage; although Iran did not participate in the 1973 oil embargo, he purposely increased production in its aftermath to capitalise on the higher prices. In December 1973, only two months after oil prices were raised by 70 per cent, he urged OPEC nations to push prices even higher, which they agreed to do, more than doubling the price. Oil prices increased by 470 per cent over a 12-month period, which also increased Iran's GDP by 50 per cent. Despite personal pleas from President Nixon, the Shah ignored any complaints, claimed the U.S. was importing more oil than at any time in the past, and proclaimed that "the industrial world will have to realise that the era of their terrific progress and even more terrific income and wealth based on cheap oil is finished."
Modernization and style of governance
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With Iran's great oil wealth, the Shah became the preeminent leader of the Middle East, and self-styled "Guardian" of the Persian Gulf. In 1961, he defended his style of rule, saying, "When Iranians learn to behave like Swedes, I will behave like the King of Sweden."
During the last years of his regime, the Shah's government became more autocratic. In the words of a U.S. Embassy dispatch: "The Shah's picture is everywhere. The beginning of all film showings in public theaters presents the Shah in various regal poses accompanied by the strains of the National Anthem ... The monarch also actively extends his influence to all phases of social affairs ... There is hardly any activity or vocation in which the Shah or members of his family or his closest friends do not have a direct or at least a symbolic involvement. In the past, he had claimed to take a two-party system seriously and declared, 'If I were a dictator rather than a constitutional monarch, then I might be tempted to sponsor a single dominant party such as Hitler organised'."
However, by 1975, Mohammad Reza had abolished the two-party system of government in favour of a one-party state under the Rastakhiz (Resurrection) Party. This was the merger of the New Iran Party, a centre-right party, and the People's Party, a liberal party. The Shah justified his actions by declaring, "We must straighten out Iranians' ranks. To do so, we divide them into two categories: those who believe in Monarchy, the constitution and the Six Bahman Revolution and those who don't ... A person who does not enter the new political party and does not believe in the three cardinal principles will have only two choices. He is either an individual who belongs to an illegal organisation, or is related to the outlawed Tudeh Party, or in other words a traitor. Such an individual belongs to an Iranian prison, or if he desires he can leave the country tomorrow, without even paying exit fees; he can go anywhere he likes, because he is not Iranian, he has no nation, and his activities are illegal and punishable according to the law." In addition, the Shah had decreed that all Iranian citizens and the few remaining political parties become part of Rastakhiz.
Image and self-image in the 1970s
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From 1973 onward, Mohammad Reza had proclaimed his aim as that of the tamaddon-e-bozorg, the "Great Civilisation", a turning point not only in Iran's history, but also the history of the entire world—a claim that was taken seriously for a time in the West. On 2 December 1974, The New Yorker published an article by Paul Erdman that was a conjectural future history entitled "The Oil War of 1976: How The Shah Won the World: The World as We Knew It Came to an End When the Shah Of Iran Decided to Restore The Glory of Ancient Persia with Western Arms". In 1975, U.S. Vice President Nelson Rockefeller declared in a speech: "We must take His Imperial Majesty to the United States for a couple of years so that he can teach us how to run a country." In 1976, a pulp novel by Alan Williams was published in the United States under the title A Bullet for the Shah: All They Had To Do Was Kill the World's Most Powerful Man, whose sub-title reveals much about how the American people viewed the Shah at the time (the original British title was the more prosaic Shah-Mak).
The great wealth generated by Iran's oil encouraged a sense of nationalism at the Imperial Court. Empress Farah recalled her days as a university student in 1950s France about being asked where she was from:
When I told them Iran ... the Europeans would recoil in horror as if Iranians were barbarians and loathsome. But after Iran became wealthy under the Shah in the 1970s, Iranians were courted everywhere. Yes, Your Majesty. Of course, Your Majesty. If you please, Your Majesty. Fawning all over us. Greedy sycophants. Then they loved Iranians.
Mohammad Reza shared the empress's sentiments as Westerners came begging to his court looking for his largesse, leading him to remark in 1976:
Now we are the masters and our former masters are our slaves. Everyday [sic?] they beat a track to our door begging for favors. How can they be of assistance? Do we want arms? Do we want nuclear power stations? We have only to answer, and they will fulfill our wishes.
Because the House of Pahlavi were a parvenu house – as Reza Khan had begun his career as a private in the Persian Army, rising up to the rank of general, taking power in a coup d'état in 1921, and making himself shah in 1925 – Mohammad Reza was keen to gain the approval of the older royal families of the world, and was prepared to spend large sums of money to gain that social acceptance.
Amongst the royalty that came to Tehran looking for the Shah's generosity were King Hussein of Jordan, the former King Constantine II of Greece, King Hassan II of Morocco, the princes and princesses of the Dutch House of Orange, and the Italian Princess Maria Gabriella of Savoy, whom the Shah had once courted in the 1950s. He coveted the British Order of the Garter, and had, prior to courting Maria Gabriella, inquired about marrying Princess Alexandra of Kent, granddaughter of King George V, but in both cases he was rebuffed in no uncertain terms. As an Iranian, Mohammad Reza greatly enjoyed supporting the Greek branch of the House of Glücksburg, knowing the Greeks still celebrated their victories over the Persians in the 5th and 4th centuries BC. He enjoyed close relations with Emperor Haile Selassie of Ethiopia, as demonstrated by the fact that he was the guest of honour at the Persepolis celebrations in 1971. Ethiopia and Iran, along with Turkey and Israel, were envisioned as an "alliance of the periphery" that would constrain Arab power in the greater Middle East.
In an era of high oil prices, Iran's economy boomed while the economies of the Western nations were trapped in stagflation (economic stagnation and inflation) after the 1973–74 oil shocks, which seemed to prove the greatness of Mohammad Reza both to himself and to the rest of the world. In 1975, both the British Prime Minister Harold Wilson and the French President Valéry Giscard d'Estaing made pleading phone calls to Mohammad Reza asking him for loans, which ultimately led the Shah to give a US$1 billion loan to the United Kingdom and another US$1 billion to France. In a televised speech in January 1975 explaining why he was lending Britain a sum equal to US$1 billion, Mohammad Reza declared in his usual grandiose style: "I have known the most dark hours when our country was obliged to pass under the tutelage of foreign powers, amongst them England. Now I find that England has not only become our friend, our equal, but also the nation to which, should we be able, we will render assistance with pleasure," going on to say that since he "belonged to this [European] world," he did not want Europe to collapse economically. As Britain had often dominated Iran in the past, the change in roles was greatly gratifying to Mohammad Reza.
Courtiers at the Imperial court were devoted to stroking the Shah's ego, competing to be the most sycophantic, with Mohammad Reza being regularly assured he was a greater leader than his much admired General de Gaulle, that democracy was doomed, and that based on Rockefeller's speech, that the American people wanted Mohammad Reza to be their leader, as well as doing such a great job as Shah of Iran. According to historian Abbas Milani, all of this praise boosted Mohammad Reza's ego, and he went from being a merely narcissistic man to a megalomaniac, believing himself a man chosen by Allah Himself to transform Iran and create the "Great Civilisation". When one of the Shah's courtiers suggested launching a campaign to award him the Nobel Peace Prize, he wrote on the margin: "If they beg us, we might accept. They give the Nobel to kaka siah ["any black face"] these days. Why should we belittle ourselves with this?" Befitting all this attention and praise, Mohammad Reza started to make increasingly outlandish claims for the "Great Civilisation", telling the Italian journalist Oriana Fallaci in a 1973 interview with L'Europeo:
Halfway measures, compromises, are unfeasible. In other words, either one is a revolutionary or one demands law and order. One can't be a revolutionary with law and order. And even less with tolerance ... when Castro came to power, he killed at least 10,000 people ... in a sense, he was really capable, because he's still in power. So am I, however! And I intend to stay there, and to demonstrate that one can achieve a great many things by the use of force, show even that your old socialism is finished. Old, obsolete, finished ... I achieve more than the Swedes ... Huh! Swedish socialism! It didn't even nationalize forests and water. But I have ... my White Revolution ... is a new original kind of socialism and ... believe me, in Iran we're far more advanced than you and we really have nothing to learn from you.
In an interview with Der Spiegel published on 3 February 1974, Mohammad Reza declared: "I would like you to know that in our case, our actions are not just to take vengeance on the West. As I said, we are going to be a member of your club". In a press conference on 31 March 1974, Mohammad Reza predicted what Iran would be like in 1984, saying:
In the cities, electric cars would replace the gas engines and mass transportation systems would be switched to electricity, monorail over the ground or electric buses. And, furthermore, in the great era of civilization that lies ahead of our people, there will be least two or three holidays a week.
In 1976, Mohammad Reza told the Egyptian journalist Mohamed Hassanein Heikal in an interview: "I want the standard of living in Iran in ten years' time to be exactly on a level with that in Europe today. In twenty years' time we shall be ahead of the United States".
Reflecting his need to have Iran seen as "part of the world" (by which Mohammad Reza meant the western world), all through the 1970s he sponsored conferences in Iran at his expense, with for example in one week in September 1975 the International Literacy Symposium meeting in Persepolis, the International Congress of Philosophy meeting in Mashhad and the International Congress of Mithraic Studies meeting in Tehran. He also sought to hold the 1984 Summer Olympics in Tehran. For most ordinary Iranians, struggling with inflation, poverty, air pollution, having to pay extortion payments to the police who demanded money from even those performing legal jobs such as selling fruits on the street, and daily traffic jams, the Shah's sponsorship of international conferences was just a waste of money and time. Furthermore, conferences on pre-Islamic practices such as the cult of Mithra fuelled religious anxieties. Though Mohammad Reza envisioned the "Great Civilisation" of a modernised Iran whose standard of living would be higher than that of the United States and at the forefront of modern technology, he did not envision any political change, making it clear that Iran would remain an autocracy.
Achievements
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Women, children, and peasant class
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In his "White Revolution" starting in the 1960s, Mohammad Reza made major changes to modernise Iran. He curbed the power of certain ancient elite factions by expropriating large and medium-sized estates for the benefit of more than four million small farmers. He took a number of other major measures, including extending suffrage to women and the participation of workers in factories through shares and other measures. In the 1970s, the governmental programme of free-of-charge nourishment for children at school known as "Taghziye Rāyegan" (Persian: تغذیه رایگان lit. free nourishment) was implemented. Under the Shah's reign, the national Iranian income showed an unprecedented rise for an extended period.
Education and military
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