*Iran versus The West: The Oil And The Nuke*

*By Akbar E. Torbat *

June 15, 2014 "ICH <http://www.informationclearinghouse.info>" -  Iran has
had two major disputes with the West that involved international legal
organizations' scrutiny: its oil nationalization case in early 1950s and
its nuclear program controversy in the past two decades. In both cases,
Iran was put under economic sanctions while pursuing its national
interests.

* The Oil *

In 1951, Prime Minister Mohammad Mosaddegh nationalized Iran's oil to end
the British-owned Anglo- Iranian oil Company's (AIOC) monopoly in Iran. To
support oil nationalization, Mosaddegh formed a coalition of political
groups under the name of National Front (Jebeh-e Melli). The British
government complained against nationalization on behalf of AIOC which
brought Iran's case to the International Court of Justice at The Hague and
the United Nations Security Council (UNSC).  Despite the sanctions imposed
on Iran, Mosaddegh stayed firm against the British to defend Iran's right
to nationalize its oil. In June 1952, Mosaddegh succeeded to win ruling
from the Court in favor of Iran.

 Mosaddegh relied mainly on the educated and intellectual Iranians to
challenge the British oil monopoly in Iran. However, he was betrayed by a
top cleric at the time, Ayatollah Abul-Qassem Kashani, who had initially
allied with Mosaddegh. Kashani mobilized the mobs, mullahs, and Royalists
against Mosaddegh that provided support for a coup which brought Mosaddegh
down. [1]   The US joined Britain in a bloody military Coup in August 1953
that overthrew Mosaddegh. After the coup, the National Front went
underground and its leaders, including Mosaddegh himself were imprisoned
and some were later executed. In 1954, a consortium of Western oil
companies was formed to control Iran's oil, which effectively reversed
nationalization.

After the 1979 revolution, some members of the National Front participated
in the newly established Islamic government but they were later purged by
the clerics. Today the Islamic regime tries to undermine Mosaddegh's
achievements. In 2013, a book written by Ervand Abrahamian, a professor of
history at City University of New York, was published which chronicled how
the 1953 Anglo-American coup brought down Mosaddegh. The book was
translated to Farsi by Nasser Zarafshan, an Iranian lawyer and human rights
defender, but the clerics prevented its distribution.  [2]

* The Nuke *

Iran's nuclear program has now created a situation similar to the oil
nationalization in early 1950s. Iran has to defend its nuclear rights
versus another major power. Since 1995, the United States, the power center
of the West, has accused Iran of pursuing manufacturing nuclear weapons.
 The US accusation received attention when in August 2002 a member of the
political arm of Mojahedin-e-Khalq revealed Iran had a secret nuclear
program, which included construction of a uranium enrichment facility in
Natanz and a heavy water plant in Arak.  In 2003, Iran officially confirmed
that it had constructed such nuclear facilities. While those facilities
were not illegal under the Nuclear Non-Proliferation Treaty, their
construction triggered Iran's nuclear dispute with the West that has
lingered to the present time. Since then the issue has gone under the
scrutiny of the International Atomic Energy Agency (IAEA) and UNSC.

 In early 2000s, the clerics were afraid that the US-led invasions of
Afghanistan and Iraq that toppled Taliban and the Ba'athist regimes would
be extended to topple their regime in Iran.  Therefore, in May 2003, they
offered a proposal to cooperate with the US and protect American interests
in the region. In return, the clerics wanted the US to end sanctions and
hostilities against their regime. Their proposal however was rejected by
the hawkish vice president Dick Cheney. [3] Meanwhile, Iran negotiated the
nuclear issue with Britain, France, and Germany (EU3) representing the
West. Hassan Rouhani, then Iran's head of nuclear negotiations team, agreed
to a EU3 proposal to suspended uranium enrichment and comply with an
Additional Protocol. On November 15, 2004, Rouhani met with the foreign
ministers of EU3 at Sadabad Palace in Tehran and signed an agreement to
suspend all Iran's nuclear enrichment activities. [4] The agreement was an
outright suspension of Iran's nuclear activities and opening of Iran's
military installations to IAEA inspectors.  In 2005 while running for
president, Mahmoud Ahmadinejad criticized Hassan Rouhani for yielding to
EU3 demands and to sign such an agreement which ignored Iran's rights to
nuclear technology. He promised to take a tough stance against the West to
defend Iran's rights and preserve its nuclear program if he became
president. Consequently, after about two years of suspension, he ordered
restarting enrichment in January 2006 after he took office.

On June 1, 2006, secretary of State Condoleezza Rice offered a US
face-to-face negotiation with Iran. [5]   Eventually, on October 1, 2009,
after thirty years, William J. Burns Undersecretary of State had a
face-to-face talk with Iranian officials in a meeting of the  five
permanent UNSC members plus Germany (P5+1) in Geneva. This time Iran was in
a radical mood and stayed firm despite US- led sanctions against it. Iran
no longer wanted to suspend enrichment. The main issue instead was the
stockpile of low enriched uranium that could provide fissile materials
suitable to make nuclear bombs.  The Six Powers plan for Iran was to ship
its stockpile of enriched uranium abroad in exchange for conversion to
nuclear fuel that Iran needed for its reactors. Iran was concerned that the
exchange was not certain because US could prevent return of the nuclear
fuel to Iran. As a result the exchange deal was not agreed on. Subsequently
the P5+1 group and Iran had several other meetings in Geneva, Istanbul,
Baghdad, Moscow, and Almaty with no progress. The red line for Iran was "no
suspension of nuclear enrichment".  In the meantime, Iran became victim of
a covert war that led to sabotage of its nuclear facilities and
assassination of its nuclear scientists.  [6]

Until 2012, Iran had resisted the west's pressures to end its uranium
enrichment.  When Ahmadinejad became a lame duck president in the last year
(2012-2013) of his second term, the clerics bypass him and the parliament
and tried to secretly negotiate with the US.  In 2013, the Western media
outlets, especially the Persian BBC and Voice of America campaigned to
bring back the pro-west clerics Akbar Hashemi-Rafsanjani or Mohammad
Khatami to presidency but that did not happen because of internal politics
within the regime. Instead, the clerics selected Hassan Rouhani who was
favorable to the two ex-presidents. After ten years, Rouhani came back on
the stage as Iran's new cleric president.

By electing Rouhani, the clerics made a concession to the West to save
their theocratic rule in Iran.  On November 23, 2013, the Islamic
government signed a temporary agreement to cut back Iran's nuclear
enrichment effective January 20, 2014. [7] Even though the official details
of the agreement have not been released but based on the available
information, Iran is under pressure to change its enrichment facilities
from an industrial scale to merely research laboratory and limited fuel
production facilities for its existing reactors.  This is despite the fact
that Iran's nuclear activities have been in compliance with IAEA's
guidelines. If finalized, the agreement will wipe out Iran's estimated $40
billion investment in its nuclear program.

The July 20 deadline for a final agreement on Iran's nuclear program is
ticking. It remains to be seen what the final agreement will be.  Since the
Iranian parliament has been kept in the dark, there is little chance that
it may disapprove of the clerics' hasty compromise with the West.
* Akbar E Torbat * * ([email protected] <%[email protected]> )
teaches economics at California State University, Los Angeles. He received
his PhD in political economy from the University of Texas at Dallas. *
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