HISTORY
   AT     A      GLANCE

THE POST-MOSSADEQ ERA AND THE SHAH'S WHITE REVOLUTION(Part 1.)

To help the Zahedi government through a difficult period, the United States arranged for immediate economic assistance of US$45 million. The Iranian government restored diplomatic relations with Britain in December 1953, and a new oil agreement was concluded in the following year. The shah, fearing both Soviet influence and internal opposition, sought to bolster his regime by edging closer to Britain and the United States. In 0ctober 1955, Iran joined the Baghdad Pact, which brought together the "northern tier" countries of Iraq, Turkey, and Pakistan in an alliance that included Britain, with the United States serving as a supporter of the pact but not a full member. (The pact was renamed the Central Treaty Organization -- CENTO -- after Iraq's withdrawal in 1958.) In March 1959, Iran signed a bilateral
defense agreement with the United States. In the Cold War atmosphere, relations with the Soviet Union were correct but not cordial. The shah visited the Soviet Union in 1956, but Soviet propaganda attacks and Iran's alliance with the West continued. Internally, a period of political repression followed the overthrow of Mossadeq, as the shah concentrated power in his own hands. He banned or suppressed the Tudeh, the National Front, and other parties; muzzled the press; and
strengthened the secret police, SAVAK (Sazman-e Ettelaat va Amniyat-e Keshvar). Elections to the Majlis in 1954 and 1956 were closely controlled. The shah appointed Hosain Ala to replace Zahedi as prime minister in April 1955 and thereafter named a succession of prime ministers who were willing to do his bidding.

Attempts at economic development and political reform were inadequate. Rising oil revenues allowed the government to launch the Second Development Plan (1955-62) in 1956. A number of large-scale industrial and agricultural projects were initiated, but economic recovery from the disruptions of the oil nationalization period was slow. The infusion of oil money led to rapid inflation and spreading discontent, and strict controls provided no outlets for political unrest. When martial law, which had been instituted in August 1953 after the coup, ended in 1957, the shah ordered two of his senior officials to form a majority party and a loyal
opposition as the basis for a two-party system. These became known as the Melliyun and the Mardom parties. These officially sanctioned parties did not satisfy demands for wider political representation, however. During Majlis elections in 1960, contested primarily by the Melliyun and the Mardom parties, charges of widespread fraud could not be suppressed, and the shah was forced to cancel the elections. Jafar Sharif-Emami, a staunch loyalist, became prime minister. After renewed and more strictly controlled elections, the Majlis convened in February 1961. But as economic conditions worsened and political unrest grew, the Sharif-Emami government fell in May 1961.

Yielding both to domestic demands for change and to pressure for reform from President John F. Kennedy's administration, the shah named Ali Amini, a wealthy landlord and senior civil servant, as prime minister. Amini was known as an advocate of reform. He received a mandate from the shah to dissolve parliament and rule for six months by cabinet decree. Amini loosened controls on the press, permitted the National Front and other political parties to resume activity, and ordered the arrest of a number of former senior officials on charges of corruption. Under Amini, the cabinet approved the Third Development Plan (1962-68) and undertook a program to reorganize the civil service. In January 1962, in the single most important measure of the fourteen-month Amini government, the cabinet approved a law for land distribution.
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