Skip to main content

Iran: Mossadegh Forces the Oil Companies to Hand Over the Baton


Arrigo Cervetto (15 January 1953)
L’Impulso


The publicity machine is getting under way again to draw attention, in the direction desired by the parties concerned, to the still unresolved problem of Persian oil. After the almost total silence of the Press in recent weeks—a silence that has not prevented the continuation of covert action—the American and British governments have submitted a new offer («a strong warning») to the Tehran government. This consists in entrusting the charge of looking after oil sales, as well as extraction and refining, to an American oil consortium. Stripped of all such convoluted propaganda as the communist threat, the need to improve Persia’s catastrophic economic situation, British rights, etc., this is the tone and content of the proposal: the blackmailing of a crisis-wracked nation, a veiled threat of more drastic measures.

It is worth noting how the new proposal insists on the almost total lack of interest that the deal represents for the British and Americans, given increased production in other places: this is to divert people’s attention from the heart of the problem. «The British and Americans want to help Persia selflessly, the British and Americans are truly democratic»: in truth, oil strategy is much more complex than this propagandistic rehashing of humanism and liberalism belied by the facts.

And the facts speak much more clearly than this false propaganda.

One need only think of the appalling decline in American oil reserves (4 billion tons—enough for 10–12 years at the most) that have to be kept for «emergency» situations, of the steady decline in American production (down from 60% to 40% of the world total in 12 years), and of the high prices of its oil in comparison with the Iranian (a US well produces 11 barrels, and an Iranian well 4–5,000 per day). If this was not enough to belie this «disinterest», there are the huge profits that the Anglo-Iranian Oil Company and the British government derived in taxes from Persian oil: the workers were paid 50 cents a day, the full amount of the interest due to the Persian government was not paid (only 33 of the 57 million tons produced were denounced), and the AOIC increased its capital from 4 to 200 million pounds from 1914 until the present. And then there is also the fact that only one-third of the production (1,600,000 barrels) of the seven biggest oil companies with mainly Anglo-American capital occurs in the US. This makes it necessary to hang on to the wells of subject countries, including Iran’s, at all costs.

The joint Anglo-American communiqué formalises the planned division of interests, not only among the big companies, but also between the two states, and demonstrates yet again how much truth there is in the formula «The state is the guard dog of the bourgeoisie».

Together with the interests of Anglo-Iranian, the big US companies that offer to sell Persian oil know how to defend their own interests, i.e. the general interests of the seven big companies (Standard, Shell, AIOC, Gulf Oil, Standard California, Socony and Vacuum) that form an international “state”, a complex network of interests that links the companies together: AOIC and Gulf Oil have joint control of Kuwait Oil; Socony and AIOC control Iraqi oil (Iraq Petroleum); Standard (NJ), Standard (California), the Texas Company and Socony control Arabian American Oil, etc. … just to give a few examples that certainly speak more clearly than Anglo-American «disinterests».

This thousand-tentacled octopus that dominates almost all of the world’s oil production, refineries, pipelines, tankers, etc. is now seeking to present itself to Persia under the paternalistic aspect of democracy. Yesterday this was the UK’s trademark, while today it is America’s … so long as it doesn’t harm the interests of the AIOC shareholders (whether English, American, or even Chinese) in any way.

It may well be that, behind this smokescreen, Mossadegh will accept the new proposals in order to break away from his dangerous method of using the proletariat to defend the interests of the bourgeoisie. We doubt, however, that the Abadan workers and the millions of starving peasants will make do with a simple change of flag after having fought and shed their blood.

(“L’Impulso”, 15 January 1953)

Source: Unitary Imperialism, Volume I, pp. 209-210.

Popular posts from this blog

Chinese Rearmament Projects Itself in Asia

Internationalism No. 78-79, August-September 2025 Page 5 From the series Asian giants Trends in rearmament spending and comparisons of military equipment are increasingly set to dominate coverage of the contention between powers in the crisis in the world order . The military factor has entered the strategic debate, accompanied by a wealth of figures and technical details. The increase in military spending as a percentage of GDP represents a widespread sign of the rearmament cycle at this juncture, but spending alone cannot entirely explain the situation, given the qualitatively different natures of the arsenals being compared. Nor are comparisons between this or that type of weapon useful in themselves, because ultimately all weapons are only ever used in combination with the complex military means available to a power, either in alliance or in conflict with other powers in the system of States. Therefore, while it is difficult to assess the real significa...

The Unstoppable Force: Capital’s Demand for Migrant Labour

Internationalism No. 78-79, August-September 2025 Page 16 “Before Giorgia Meloni became Italy’s prime minister, she pledged to cut immigration. Since she has been in government the number of non-EU work visas issued by Italy has increased”. This is how The Economist of April 26th summarises the schizophrenia of their politics; and this is not only true in Italy: “Net migration also surged in post-Brexit Britain”. The needs of the economic system do not coincide with the rhetoric of parliamentarism. And vice versa. Schizophrenia and imbalances in their politics Returning to Italy, the Bank of Italy has pointed out that by 2040, in just fifteen years, there will be a shortage of five million people of working age, which could lead to an estimated 11% contraction in GDP. This is why even Italy’s “sovereignist” government is preparing to widen the net of its Immigration Flow Decree. The latest update, approved on June 30th, provides for the entry of almost ...

In the Depth of Our Class

The pandemic of the century is a storm that does not subside; it returns to its rampage after 40 million infections and more than a million official victims, perhaps two million according to estimates on the excess deaths. In the contention between powers, China stands as the winner: it seems to have tamed the virus, and industry and services are up and running; the USA and Europe, on the other hand, are moving towards a new wave of infections that casts yet more shadows on the economic cycle. Political structures and health systems are at the height of tension. In America, the elections have judged Donald Trump’s rash demagogy on the basis of the opposite reasons for containing the pandemic and the intolerance of small and large producers; in Europe the executives are attempting to steer between the surge in infections, increasingly stringent confinement measures and the threats of fiscal jacquerie in the tourism and catering sectors. Almost everywhere, in the Old Continent, governm...

The Defeat in Afghanistan — a Watershed in the Cycle of Atlantic Decline

In crises and wars there are events which leave their mark on history because of how they make a decisive impact on the power contention, or because of how, almost like a chemical precipitate, they suddenly make deep trends that have been at work for some time coalesce. This is the case of the defeat of the United States and NATO in Afghanistan, which is taking the shape of a real watershed in the cycle of Atlantic decline. For the moment, through various comments in the international press, it is possible to consider its consequences on three levels: America’s position as a power and the connection with its internal crisis; the repercussions on Atlantic relations and Europe’s dilemmas regarding its strategic autonomy; and the relationship between the Afghan crisis and power relations in Asia, especially as regards India’s role in the Indo-Pacific strategy. Repercussions in the United States Richard Haass is the president of the CFR, the Council on Foreign Relations; despite having ...

The Comprehensive Agreement on Investment Strengthens the ‘European Party’ in China

From the series News from the Silk Road “Chinese people treat [US democracy] as a variety show which is much more interesting than House of Cards’ [...]”. Beijing does not feel the same embarrassment as the old democracies of the West faced with the grotesque scenes of demonstration against the Capitol organised by the president of the United States. Zhao Minghao from the Chongyang Institute spelled out the obvious in his analysis some time earlier: “the political farce by the incumbent president and some Republican lawmakers is reflecting the profound crisis on US domestic politics.” The Global Times is serving a hefty bill to the ideologies of liberal interventionism: “the ‘beacon of democracy’, and the beautiful rhetoric of ‘City upon a Hill’ [...]” are undergoing a serious debacle or in other words, a “Waterloo of US international image”. It will be a while before the US can “interfere in other countries’ domestic affairs with the excuse of ‘democracy’[...]”. Attention is also...

Uneven Development, Job Cuts, and the Crisis of Labour Under Global Capitalism

Internationalism No. 73, March 2025 Page 16 Uneven development is a fundamental law of capitalism. We have a macroscopic expression of this in the changing balance of power between States: Atlantic decline and Asian rise are the key dynamics behind the political processes of this era, including wars caused by the crisis in the world order. But behind all this there is a differentiated economic trend, starting from companies and sectors: hence the differentiated conditions for wage earners. And this is the element to keep in mind for an effective defensive struggle. It’s only the beginning The electrical and digital restructuring imposed by global market competition affects various production sectors. The car industry is the most obvious, due to the familiarity of the companies and brands involved. We have already reported on the agreement reached before Christmas at Volkswagen, which can be summarised as a reduction of 35,000 employees by 2030. Die Zeit [De...

Armed Negotiations between the Gulf and the Mediterranean

David Petraeus, Commander of the US forces in Iraq and the Gulf in 2007-2008, then director of the CIA in 2011-12, described the elimination of Iranian General Qasem Soleimani on January 3 rd in Baghdad as a defensive action , with which the Trump presidency restored a US deterrence , which was weakened by recent Iranian actions . This is a reference to the attacks conducted indirectly, unclaimed by Tehran, against the Saudi oil infrastructures on September 14 th 2019. In March 2008, when the forces under Petraeus’ command supported the Iraqi Army in the fight against local Shite militias, Soleimani sent a message to the American general: informing him that he was the person in charge for Iranian policies in Iraq, Syria, Lebanon and Gaza therefore the channel through which to define an agreement to resolve the various issues with Tehran. Petraeus holds the advisors of the Quds Force, the spearhead of the Pasdaran asymmetric operations, responsible for the killing of around 600 ...

Democratic Defeat in the Urban Vote

Internationalism No. 71, January 2025 Page 2 From the series Elections in the USA A careful analysis of the 2022 mid-term elections revealed the symptoms of a Democratic Party malaise which subsequently fully manifested itself in the latest presidential election, with the heavy loss of support in its traditional strongholds of the metropolitan areas of New York City and Chicago, and the State of California. A defeat foretold Republican votes rose from 51 million in the previous 2018 midterms to 54 million in 2022, a gain of 3 million. The Democrat vote fell from 61 to 51 million, a loss of 10 million. The Republicans gained only three votes for every ten lost by the Democrats, while the other seven became abstentions. In 2022, we analysed the elections in New York City by borough, the governmental districts whose names are well known through movies and TV series. In The Bronx, where the average yearly household income is $35,000, the Democrats lost 52,00...

Europe Follows the USA and China in the Strategic Use of Space

Internationalism No. 33, November 2021 Page 9 From the series The war industry and European defence Next Spring SpaceX will be 20 years old. The company founded by Elon Musk has rapidly achieved a key role in international space activity. The first stage of its Falcon 9 rocket has recently been recovered, reconditioned and reused for the tenth time. SpaceX has already repeated this type of reflight 70 times or so; it allows for substantial savings when compared to the losses incurred in the first stages of a traditional rocket launch. It is for this reason that it is being considered as the standard for the future. According to NASA’s calculations, the average cost of launching a satellite into orbit has fluctuated around the level of $18,500 per kilogram for the whole period between 1970 and 2000. SpaceX has reduced this figure by seven times. Internet constellations In recent missions Falcon 9 rockets have put a total of 60 Starlink satellites ...

‘Two Hands’ and ‘Two Roads’

From the series News from the Silk Road The international tensions which China will face on the seas in the next fifteen years could find a buffer in the expansion of China’s influence on land in Central, Southern and Western Asia. Wang Jisi is the dean of the School of International Studies at the University of Beijing and a major figure of the American party in China. His unexpected foray into ‘geopolitics’ has reignited the old clash between different American currents — a phenomenon we analysed more than twenty years ago. At the time, Robert Manning, the author of The Asian Energy Factor and adviser to the State Department in 1991, viewed Asia’s growing dependence on the Persian Gulf for its energy requirements in the light of geoeconomics and geostrategy and foresaw a possible convergence between the USA and China. From a geoeconomic standpoint, both trade and the funding and development of the infrastructure necessary for Asia’s energy needs were more important than terri...