1953 Iranian Coup D'état

The 1953 Iranian coup d'état, known in Iran as the 28 Mordad coup d'état ( fa, کودتای ۲۸ مرداد), was the overthrow of the democratically elected Prime Minister Mohammad Mosaddegh in favor of strengthening the monarchical rule of the Shah, Mohammad Reza Pahlavi, on 19 August 1953. It was aided by the United States (under the name TPAJAX Project or "Operation Ajax") and the United Kingdom (under the name "Operation Boot"). The clergy also played a considerable role.

Mosaddegh had sought to audit the documents of the Anglo-Iranian Oil Company (AIOC), a British corporation (now part of BP), in order to verify that AIOC was paying the contracted royalties to Iran, and to limit the company's control over Iranian oil reserves. Upon the AIOC's refusal to co-operate with the Iranian government, the parliament ( Majlis) voted to nationalize Iran's oil industry and to expel foreign corporate representatives from the country. After this vote, Britain instigated a worldwide boycott of Iranian oil to pressure Iran economically. Initially, Britain mobilized its military to seize control of the British-built Abadan oil refinery, then the world's largest, but Prime Minister Clement Attlee (in power until 1951) opted instead to tighten the economic boycott while using Iranian agents to undermine Mosaddegh's government. Judging Mosaddegh to be unreliable and fearing a Communist takeover in Iran, UK prime minister Winston Churchill and the Eisenhower administration decided in early 1953 to overthrow Iran's government, though the preceding Truman administration had opposed a coup, fearing the precedent that Central Intelligence Agency (CIA) involvement would set. British intelligence officials' conclusions and the UK government's solicitations were instrumental in initiating and planning the coup, despite the fact that the U.S. government in 1952 had been considering unilateral action (without UK support) to assist the Mosaddegh government.

Following the coup in 1953, a government under General Fazlollah Zahedi was formed which allowed Mohammad Reza Pahlavi, the last Shah of Iran (Farsi for 'king'), to rule more firmly as monarch. He relied heavily on United States support to hold on to power. According to the CIA's declassified documents and records, some of the most feared mobsters in Tehran were hired by the CIA to stage pro-Shah riots on 19 August. Other men paid by the CIA were brought into Tehran in buses and trucks, and took over the streets of the city. Between 200 and 300 people were killed because of the conflict. Mosaddegh was arrested, tried and convicted of treason by the Shah's military court. On 21 December 1953, he was sentenced to three years in jail, then placed under house arrest for the remainder of his life. Other Mosaddegh supporters were imprisoned, and several received the death penalty. After the coup, the Shah continued his rule as monarch for the next 26 years until he was overthrown in the Iranian Revolution in 1979.

In August 2013 the U.S. government formally acknowledged the U.S. role in the coup by releasing a bulk of previously classified government documents that show it was in charge of both the planning and the execution of the coup, including the bribing of Iranian politicians, security and army high-ranking officials, as well as pro-coup propaganda. The CIA is quoted acknowledging the coup was carried out "under CIA direction" and "as an act of U.S. foreign policy, conceived and approved at the highest levels of government".

Background

Throughout the 19th century, Iran was caught between two advancing imperial powers, Russia and Britain. In 1892, the British diplomat George Curzon described Iran as "pieces on a chessboard upon which is being played out a game for the dominion of the world." During the latter half of the 19th century, the concession policies of the monarchy faced increased opposition. In 1872, a representative of British entrepreneur Paul Reuter and agreed to fund the monarch's upcoming lavish visit to Europe in return for exclusive contracts for Iranian roads, telegraphs, mills, factories, extraction of resources, and other public works, in which Reuter would receive a stipulated sum for five years and 60% of all the net revenue for 20 years. However, the so-called " Reuter concession" was never put into effect because of violent opposition at home and from Russia. In 1892 the Shah was forced to revoke a tobacco monopoly given to Major G. F. Talbot, following protests and a widespread tobacco boycott.

In 1901, Mozzafar al-Din Shah Qajar granted a 60-year petroleum search concession to William Knox D'Arcy. D'Arcy paid £20,000 (equivalent to £ million in ), according to journalist-turned-historian Stephen Kinzer, and promised equal ownership shares, with 16% of any future net profit, as calculated by the company. However, the historian L. P. Elwell-Sutton wrote, in 1955, that "Persia's share was 'hardly spectacular' and no money changed hands." On 31 July 1907, D'Arcy withdrew from his private holdings in Persia, and transferred them to the British-owned Burmah Oil Company. On 26 May 1908 the company struck oil at a depth of . The company grew slowly until World War I, when Persia's strategic importance led the British government to buy a controlling share in the company, essentially nationalizing British oil production in Iran.

The British angered the Persians by intervening in their domestic affairs, including in the Persian Constitutional Revolution. Massive popular protests had forced Mozzafar al-Din Shah to allow for the Constitution of 1906, which limited his powers. It allowed for a democratically elected parliament Majlis to make the laws, and a prime minister to sign and carry them out. The Prime Minister would be appointed by the Shah after a vote of confidence from Parliament. Nevertheless, the new constitution gave the shah many executive powers as well. It allowed for the shah to issue royal decrees ( Farman), gave him the power to appoint and dismiss prime ministers (upon votes of confidence from Parliament), appoint half of the members of the Senate (which was not convened until 1949), and introduce bills to and even dissolve Parliament. It abolished arbitrary rule, but the shah served as an executive, rather than in a ceremonial role; consequently when a shah was weak, the government was more democratic, but when the shah acted on his own, the democratic aspects of the government could be sidelined. The contradictory aspects of this constitution would cause conflicts in the future. The Constitutional Revolution was opposed by the British and Russians, who attempted to subvert it through the backing of Mohammad Ali Shah Qajar (the son of Mozzafar-e-din Shah), who tried to break up the democratic government by force. A guerrilla movement led by Sattar Khan deposed him in 1910.

In the aftermath of World War I there was widespread political dissatisfaction with the royalty terms of the British petroleum concession, under the Anglo-Persian Oil Company (APOC), whereby Persia received 16% of "net profits". In 1921, after years of severe mismanagement under the Qajar dynasty, a coup d'état (allegedly backed by the British) brought a general, Reza Khan, into the government. By 1923, he had become prime minister, and gained a reputation as an effective politician with a lack of corruption. By 1925 under his influence, Parliament voted to remove Ahmad Shah Qajar from the throne, and Reza Khan was crowned Reza Shah Pahlavi, of the Pahlavi Dynasty. Reza Shah began a rapid and successful modernization program in Persia, which up until that point had been considered to be among the most impoverished countries in the world. Nevertheless, Reza Shah was also a very harsh ruler who did not tolerate dissent. By the 1930s, he had suppressed all opposition, and had sidelined the democratic aspects of the constitution. Opponents were jailed and in some cases even executed. While some agreed with his policies, arguing that it was necessary as Iran was in such turmoil, others argued that it was unjustified. One such opponent was a politician named Mohammad Mosaddegh, who was jailed in 1940. The experience gave him a lasting dislike for authoritarian rule and monarchy, and it helped make Mosaddegh a dedicated advocate of complete oil nationalization in Iran.

Reza Shah attempted to attenuate the power of the colonial forces in Iran, and was successful to a large extent. However, he also needed them to help modernize the country. He did so by balancing the influence of various colonial powers, including that of Britain and Germany. In the 1930s, Reza Shah tried to terminate the APOC concession that the Qajar dynasty had granted, but Iran was still weak and Britain would not allow it. The concession was renegotiated on terms again favorable to the British (although the D'Arcy Concession was softened). On 21 March 1935, Reza Shah changed the name of the country from Persia to Iran. The Anglo-Persian Oil Company was then renamed the Anglo-Iranian Oil Company (AIOC).

In 1941, after the German invasion of the Soviet Union, British and Soviet forces invaded and occupied Iran, which was largely unopposed by the Iranian government and military. After World War II had broken out, Reza Shah had declared Iran's neutrality, and attempted to appease the British, Soviets and Germans, all of whom maintained a degree of influence in Iran. The primary reasons behind the Anglo-Soviet invasion was to remove German influence in Iran and secure control over Iran's oil fields and the Trans-Iranian Railway in order to deliver supplies to the USSR. Reza Shah was deposed and exiled by the British to South Africa, and his 22-year-old son Mohammad Reza Pahlavi was installed as the new Shah of Iran. Mohammad Reza Pahlavi was supported by the Allies because they viewed him as being less able to act against their interests in Iran. The new Shah, unlike his father, was initially a mild leader and at times indecisive. During the 1940s he did not for most part take an independent role in the government, and much of Reza Shah's authoritarian policies were rolled back. Iranian democracy effectively was restored during this period as a result.

The British occupational force withdrew from Iran after the end of the war. However, under Stalin, the Soviet Union partly remained by sponsoring two "People's Democratic Republics" within Iran's borders. The related conflict was ended when the US lobbied for the Iranian Army to reassert control over the two occupied territories. The earlier agreed-upon Soviet-Iranian oil agreement would never be honored. Nationalist leaders in Iran became influential by seeking a reduction in long-term foreign interventions in their country—especially the oil concession which was very profitable for the West and not very profitable for Iran. The British-controlled AIOC refused to allow its books to be audited to determine whether the Iranian government was being paid what had been promised. British intransigence irked the Iranian population.

U.S. objectives in the Middle East remained the same between 1947 and 1952 but its strategy changed. Washington remained "publicly in solidarity and privately at odds" with Britain, its World War II ally. Britain's empire was steadily weakening, and with an eye on international crises, the U.S. re-appraised its interests and the risks of being identified with British colonial interests. "In Saudi Arabia, to Britain's extreme disapproval, Washington endorsed the arrangement between ARAMCO and Saudi Arabia in the 50/50 accord that had reverberations throughout the region."

Iran's oil had been discovered and later controlled by the British-owned AIOC. Popular discontent with the AIOC began in the late 1940s: a large segment of Iran's public and a number of politicians saw the company as exploitative and a central tool of continued British imperialism in Iran.

Oil nationalization crisis

Assassination attempt on the Shah, and the appointment of Mosaddegh as Prime Minister

In 1949, an assassin attempted to kill the Shah. Shocked by the experience and emboldened by public sympathy for his injury, the Shah began to take an increasingly active role in politics. He quickly organized the Iran Constituent Assembly to amend the constitution to increase his powers. He established the Senate of Iran, which had been a part of the Constitution of 1906 but had never been convened. The Shah had the right to appoint half the senators, and he chose men sympathetic to his aims. Mosaddegh thought this increase in the Shah's political power was not democratic; he believed that the Shah should "reign, but not rule" in a manner similar to Europe's constitutional monarchies. Led by Mosaddegh, political parties and opponents of the Shah's policies banded together to form a coalition known as the National Front. Oil nationalization was a major policy goal for the party.

By 1951, the National Front had won majority seats for the popularly elected Majlis (Parliament of Iran). According to Iran's constitution, the majority elected party in the parliament would give a vote of confidence for its prime minister candidate, after which the Shah would appoint the candidate to power. The Prime Minister Haj Ali Razmara, who opposed the oil nationalization on technical grounds, was assassinated by the hardline Fadaiyan e-Islam (whose spiritual leader the Ayatollah Abol-Qassem Kashani, a mentor to the future Ayatollah Ruhollah Khomeini, had been appointed Speaker of the Parliament by the National Front). After a vote of confidence from the National Front dominated Parliament, Mosaddegh was appointed prime minister of Iran by the Shah (replacing Hossein Ala, who had replaced Razmara). Under heavy pressure by the National Front, the assassin of Razmara ( Khalil Tahmasebi) was released and pardoned, thus proving the movement's power in Iranian politics. For the time being, Mosaddegh and Kashani were allies of convenience, as Mosaddegh saw that Kashani could mobilize the "religious masses", while Kashani wanted Mosaddegh to drive out British and other foreign influence. Kashani's Fadaiyan mobs often violently attacked the opponents of nationalization and opponents of the National Front government, as well as "immoral objects", acting at times as unofficial "enforcers" for the movement. However, by late 1952 Mosaddegh was becoming increasingly opposed to Kashani, as the latter was contributing to mass political instability in Iran. Kashani in turn, berated Mosaddegh for not "Islamizing" Iran, as he was a firm believer in the separation of religion and state.

The Shah and his prime minister had an antagonistic relationship. Part of the problem stemmed from the fact that Mosaddegh was connected by blood to the former royal Qajar dynasty, and saw the Pahlavi king as a usurper to the throne. But the real issue stemmed from the fact that Mosaddegh represented a pro-democratic force that wanted to temper the Shah's rule in Iranian politics. He wanted the Shah to be a ceremonial monarch rather than a ruling monarch, thus giving the elected government power over the un-elected Shah. While the constitution of Iran gave the Shah the power to rule directly, Mosaddegh used the united National Front bloc and the widespread popular support for the oil nationalization vote (the latter which the Shah supported as well) in order to block the Shah's ability to act. As a result, the oil nationalization issue became increasingly intertwined with Mosaddegh's pro-democracy movement. The dejected Shah was angered by Mosaddegh's "insolence" (according to Abbas Milani, he angrily paced in the rooms of his palace at the thought that he would be reduced to a figurehead). But Mosaddegh and the oil nationalization's popularity prevented the Shah from acting against his prime minister (which was allowed under Iran's constitution, something that Mosaddegh felt a king had no right to do). In 1952 the Shah dismissed Mosaddegh, replacing him with Ahmad Qavam (a veteran prime minister). But widespread protests by Mosaddegh supporters resulted in the Shah immediately reinstating him.

Oil nationalization, the Abadan crisis, and rising tensions

In late 1951, Iran's Parliament in a near unanimous vote approved the oil nationalization agreement. The bill was widely popular among most Iranians, and generated a huge wave of nationalism, and immediately put Iran at loggerheads with Britain (the handful of MPs that disagreed with it voted for it as well in the face of overwhelming popular support, and the Fadaiyan's wrath). The nationalization made Mosaddegh instantly popular among millions of Iranians, cementing him as a national hero, and placing him and Iran at the centre of worldwide attention. Many Iranians felt that for the first time in centuries, they were taking control of the affairs of their country. Many also expected that nationalization would result in a massive increase of wealth for Iranians.

Britain now faced the newly elected nationalist government in Iran where Mosaddegh, with strong backing of the Iranian parliament and people, demanded more favorable concessionary arrangements, which Britain vigorously opposed.

The U.S. State Department not only rejected Britain's demand that it continue to be the primary beneficiary of Iranian oil reserves but "U.S. international oil interests were among the beneficiaries of the concessionary arrangements that followed nationalization."

Mohammad Mosaddegh attempted to negotiate with the AIOC, but the company rejected his proposed compromise. Mosaddegh's plan, based on the 1948 compromise between the Venezuelan Government of Romulo Gallegos and Creole Petroleum,Chatfield, Wayne, ''The Creole Petroleum Corporation in Venezuela'' Ayer Publishing 1976 p. 29 would divide the profits from oil 50/50 between Iran and Britain. Against the recommendation of the United States, Britain refused this proposal and began planning to undermine and overthrow the Iranian government.

In July 1951, the American diplomat Averell Harriman went to Iran to negotiate an Anglo-Iranian compromise, asking the Shah's help; his reply was that "in the face of public opinion, there was no way he could say a word against nationalisation". Harriman held a press conference in Tehran, calling for reason and enthusiasm in confronting the "nationalisation crisis". As soon as he spoke, a journalist rose and shouted: "We and the Iranian people all support Premier Mosaddegh and oil nationalisation!" Everyone present began cheering and then marched out of the room; the abandoned Harriman shook his head in dismay.

On a visit to the United States in October 1951, Mosaddegh—in spite of the popularity of nationalization in Iran—agreed in talks with George C. McGhee to a complex settlement of the crisis involving the sale of the Abadan Refinery to a non-British company and Iranian control of the extraction of crude oil. The US waited until Winston Churchill became prime minister to present the deal, believing he would be more flexible, but the deal was rejected by the British.

The National Iranian Oil Company suffered decreased production, because of Iranian inexperience and the AIOC's orders that British technicians not work with them, thus provoking the Abadan Crisis that was aggravated by the Royal Navy's blockading its export markets to pressure Iran to not nationalise its petroleum. The Iranian revenues were greater, because the profits went to Iran's national treasury rather than to private, foreign oil companies. By September 1951, the British had virtually ceased Abadan oil field production, forbidden British export to Iran of key British commodities (including sugar and steel), and had frozen Iran's hard currency accounts in British banks. British Prime Minister Clement Attlee considered seizing the Abadan Oil Refinery by force, but instead settled on an embargo by the Royal Navy, stopping any ship transporting Iranian oil for carrying so-called "stolen property". On his re-election as prime minister, Winston Churchill took an even harder stance against Iran.

The United Kingdom took its anti-nationalization case against Iran to the International Court of Justice at The Hague; PM Mosaddegh said the world would learn of a "cruel and imperialistic country" stealing from a "needy and naked people". The court ruled that it had no jurisdiction over the case. Nevertheless, the British continued to enforce the embargo of Iranian oil. In August 1952, Iranian Prime Minister Mosaddegh invited an American oil executive to visit Iran and the Truman administration welcomed the invitation. However, the suggestion upset Churchill, who insisted that the U.S. not undermine his campaign to isolate Mosaddegh because of British support for the U.S. in the Korean War.

In mid-1952, Britain's embargo of Iranian oil was devastatingly effective. British agents in Tehran "worked to subvert" the government of Mosaddegh, who sought help from President Truman and then the World Bank but to no avail. "Iranians were becoming poorer and unhappier by the day" and Mosaddegh's political coalition was fraying. To make matters worse, the Speaker of the Parliament Ayatollah Kashani, Mosaddegh's main clerical supporter, became increasingly opposed to the Prime Minister, because Mosaddegh was squeezing him out of power. By 1953, he had completely turned on him, and supported the coup, depriving Mosaddegh of religious support, while giving it to the Shah.

In the Majlis election in the spring of 1952, Mosaddegh "had little to fear from a free vote, since despite the country's problems, he was widely admired as a hero. A free vote, however, was not what others were planning. British agents had fanned out across the country, bribing candidates, and the regional bosses who controlled them. Robert Zaehner alone spent over a £1,500,000, smuggled in biscuit tins, to bribe Iranians, and later his colleague Norman Darbyshire admitted that the actual coup cost the British government a further £700,000. They hoped to fill the Majlis with deputies who would vote to depose Mosaddegh. It would be a coup carried out by seemingly legal means."

While the National Front, which often supported Mosaddegh won handily in the big cities, there was no one to monitor voting in the rural areas. Violence broke out in Abadan and other parts of the country where elections were hotly contested. Faced with having to leave Iran for The Hague where Britain was suing for control of Iranian oil, Mosaddegh's cabinet voted to postpone the remainder of the election until after the return of the Iranian delegation from The Hague.

While Mosaddegh dealt with political challenge, he faced another that most Iranians considered far more urgent. The British blockade of Iranian seaports meant that Iran was left without access to markets where it could sell its oil. The embargo had the effect of causing Iran to spiral into bankruptcy. Tens of thousands had lost their jobs at the Abadan refinery, and although most understood and passionately supported the idea of nationalisation, they naturally hoped that Mosaddegh would find a way to put them back to work. The only way he could do that was to sell oil.

To make matters worse, the Communist Tudeh Party, which supported the Soviet Union and had attempted to kill the Shah only four years earlier, began to infiltrate the military and send mobs to "support Mosaddegh" (but in reality to marginalize all non-Communist opponents). Earlier, the Tudeh had denounced Mosaddegh, but by 1953 they changed tack and decided to "support" him. The Tudeh violently attacked opponents under the guise of helping the prime minister (the cousin of the future queen of Iran, Farah Pahlavi, was stabbed at the age of 13 in his school by Tudeh activists), and unwittingly helped cause Mosaddegh's reputation to decline, despite the fact that he never officially endorsed them. However, by 1953 he and the Tudeh had formed an unofficial alliance of convenience with each other; the Tudeh were the "foot soldiers" for his government, effectively replacing the Fadaiyan in that role, all the while secretly hoping that Mosaddegh would institute communism. Pro-Shah mobs also carried out attacks on Mosaddegh opponents, and there may have been some CIA coordination.

Worried about Britain's other interests in Iran, and (thanks to the Tudeh party) believing that Iran's nationalism was really a Soviet-backed plot, Britain persuaded US Secretary of State John Foster Dulles that Iran was falling to the Soviets—effectively exploiting the American Cold War mindset. Since President Harry S. Truman was busy fighting a war in Korea, he did not agree to overthrow the government of Prime Minister Mohammad Mosaddegh. However, in 1953, when Dwight D. Eisenhower became president, the UK convinced the U.S. to undertake a joint coup d'état.

Final months of Mosaddegh's government

By 1953, economic tensions caused by the British embargo and political turmoil began to take a major toll on Mosaddegh's popularity and political power. He was increasingly blamed for the economic and political crisis. Political violence was becoming widespread in the form of street clashes between rival political groups. Mosaddegh was losing popularity and support among the working class which had been his strongest supporters. As he lost support, he became more autocratic. As early as August 1952, he began to rely on emergency powers to rule, generating controversy among his supporters. After an assassination attempt upon one of his cabinet ministers and himself, he ordered the jailing of dozens of his political opponents. This act created widespread anger among the general public, and led to accusations that Mosaddegh was becoming a dictator. The Tudeh party's unofficial alliance with Mosaddegh led to fears of communism, and increasingly it was the communists who were taking part in pro-Mosaddegh rallies and attacking opponents.

By mid-1953 a mass of resignations by Mosaddegh's parliamentary supporters reduced the National Front seats in Parliament. A referendum to dissolve parliament and give the prime minister power to make law was submitted to voters, and it passed with 99.9 percent approval, 2,043,300 votes to 1300 votes against. The referendum was widely seen by opponents as treason and an act against the Shah, who was stripped of military power and control over national resources. This act would be one of many key factors in a chain of events leading to Mosaddegh's deposition.

The Shah himself initially opposed the coup plans and supported the oil nationalization, but he joined in after being informed by the CIA that he too would be "deposed" if he didn't play along. The experience left him with a lifelong awe of American power and would contribute to his pro-US policies while generating a hatred of the British. Mosaddegh's decision to dissolve Parliament also contributed to his decision.

Execution of Operation Ajax

The official pretext for the start of the coup was Mosaddegh's decree to dissolve Parliament, giving himself and his cabinet complete power to rule, while effectively stripping the Shah of his powers. It resulted in him being accused of giving himself "total and dictatorial powers." The Shah, who had been resisting the CIA's demands for the coup, finally agreed to support it.
Having obtained the Shah's concurrence, the CIA executed the coup.Gasiorowski, M. J., (1987) "The 1953 ''Coup d'État'' in Iran." '' International Journal of Middle East Studies'', vol. 19 pp. 261–86. Firmans (royal decrees) dismissing Mosaddegh and appointing General Fazlollah Zahedi (a loyalist who had helped Reza Shah reunify Iran decades earlier) were drawn up by the coup plotters and signed by the Shah. Having signed the decrees and delivered them to General Zahedi, he and Queen Soraya departed for a week-long vacation in northern Iran. On Saturday 15 August, Colonel Nematollah Nassiri, the commander of the Imperial Guard, delivered to Mosaddegh a firman from the Shah dismissing him. Mosaddegh, who had been warned of the plot, probably by the Communist Tudeh Party, rejected the firman and had Nassiri arrested. Mosaddegh argued at his trial after the coup that under the Iranian constitutional monarchy, the Shah had no constitutional right to issue an order for the elected Prime Minister's dismissal without Parliament's consent. However, the constitution at the time did allow for such an action, which Mosaddegh considered unfair. The action was publicized within Iran by the CIA and in the United States by ''The New York Times''. Mosaddegh's supporters took to the streets in violent protests. Following the failed coup attempt, the Shah, accompanied by his second wife Soraya Esfandiary-Bakhtiari and Aboul Fath Atabay fled to Baghdad. Arriving unannounced, the Shah asked for permission for himself and his consort to stay in Baghdad for a few days before continuing on to Europe. After high-level Government consultations, they were escorted to the White House, the Iraqi Government's guest house, before flying to Italy in a plane flown by Mohammad Amir Khatami.

After the first coup attempt failed, General Zahedi, declaring that he was the rightful prime minister of Iran, shuttled between multiple safe houses attempting to avoid arrest. Mosaddegh ordered security forces to capture the coup plotters, and dozens were imprisoned. Believing that he had succeeded, and that he was in full control of the government, Mosaddegh erred. Assuming that the coup had failed, he asked his supporters to return to their homes and to continue with their lives as normal. The Tudeh party members also returned to their homes, no longer carrying out enforcement duties. The CIA was ordered to leave Iran, although Kermit Roosevelt Jr. was slow to receive the message—allegedly due to MI6 interference—and eagerly continued to foment anti-Mosaddegh unrest. The Eisenhower administration considered changing its policy to support Mosaddegh, with undersecretary of state Walter Bedell Smith remarking on 17 August: "Whatever his faults, Mosaddegh had no love for the Russians and timely aid might enable him to keep Communism in check."

General Zahedi, who was still on the run, met with the pro-Shah Ayatollah Mohammad Behbahani and other Shah supporters in secret. There (using CIA money deridingly known as "Behbahani dollars"), they quickly created a new plan. Already, much of the country's upper class was in shock from the Shah's flight from Iran, fears of communism, and Mosaddegh's arrests of opponents. They capitalized on this sentiment in their plans. The Ayatollah Behbahani also used his influence to rally religious demonstrators against Mosaddegh.

On 19 August, hired infiltrators posing as Tudeh party members began to organize a "communist revolution". They came and encouraged real Tudeh members to join in. Soon, the Tudeh members took to the streets attacking virtually any symbols of capitalism, and looting private businesses and destroying shops. Much of southern Tehran's business district, including the bazaars, were vandalized. With sudden mass public revulsion against this act, the next part of Zahedi's plan came into action. From the vandalized bazaars, a second group of paid infiltrators, this time posing as Shah supporters, organized angry crowds of common Iranians who were terrified about a "communist revolution" and sickened by the violence.

The CIA hired the two biggest gangsters of the South Tehran ghetto,  "Icy Ramadan" and Shaban Jafari A.K.A " Brainless Shaban", to mobilize protest against Mosaddegh.

By the middle of the day, large crowds of regular citizens, armed with improvised weapons, took to the streets in mass demonstrations, and beat back the Tudeh party members. Under Zahedi's authority, the army left its barracks and drove off the communist Tudeh and then stormed all government buildings with the support of demonstrators. Mosaddegh fled after a tank fired a single shell into his house, but he later turned himself in to the army's custody. To prevent further bloodshed, he refused a last attempt to organize his supporters. By the end of the day, Zahedi and the army were in control of the government. Despite the CIA's role in creating the conditions for the coup, there is little evidence to suggest that Kermit Roosevelt Jr. or other CIA officials were directly responsible for the actions of the demonstrators or the army on 19 August. It has even been suggested that Roosevelt's activities between 15 and 19 August were primarily intended to organize "stay-behind networks as part of the planned CIA evacuation of the country," although they allowed him to later "claim responsibility for the day's outcome." In 2014, historian Ray Takeyh conclusively showed that the US-led coup attempt was unsuccessful, with the CIA writing to Eisenhower that "The move failed ��We now ..probably have to snuggle up to Mosaddeq if we’re going to save ur influence in Iran” the demonstrations that led to Mosaddeq's resignation took place some weeks after the Roosevelt-organized ones, and were composed of average citizens, not the thugs-for-hire that the CIA and MI6 had recruited.

The Shah stayed in a hotel in Italy until he learned what had transpired, upon which he "chokingly declared": "I knew they loved me." Allen Dulles, the director of the CIA, flew back with the Shah from Rome to Tehran. Zahedi officially replaced Mosaddegh. Mosaddegh was arrested, tried, and originally sentenced to death. But on the Shah's personal orders, his sentence was commuted to three years' solitary confinement in a military prison, followed by house arrest until his death.

United States' role

As a condition for restoring the Anglo-Iranian Oil Company, in 1954 the US required removal of the AIOC's monopoly; five American petroleum companies, Royal Dutch Shell, and the Compagnie Française des Pétroles, were to draw Iran's petroleum after the successful coup d'état—Operation Ajax. The Shah declared this to be a "victory" for Iranians, with the massive influx of money from this agreement resolving the economic collapse from the last three years, and allowing him to carry out his planned modernization projects.

As part of that, the CIA organized anti-Communist guerrillas to fight the Tudeh Party if they seized power in the chaos of Operation Ajax. Released National Security Archive documents showed that Undersecretary of State Walter Bedell Smith reported that the CIA had agreed with Qashqai tribal leaders, in south Iran, to establish a clandestine safe haven from which U.S.-funded guerrillas and spies could operate.

Operation Ajax's formal leader was senior CIA officer Kermit Roosevelt Jr., while career agent Donald Wilber