Tanmay Saukur 🇮🇳 Profile picture
Oct 6 19 tweets 4 min read Read on X
The Lost Alliance: Israel & Iran's Surprising Past Partnership!

There existed an alliance between both the Nations under The Shah Of Iran's Regime.

The thread covers on the topics of

- The Collaborations
- Economic Policies
- What went wrong with the Shah of Iran. 🧵 Image
1️⃣ The Collaborations:

In the 1960s both the nations cooperated against a common enemy. At that time, Iraq was a threat to both the nations.

Israel was under a border dispute & Iran viewed Iraq as a danger. This led to a secret collaboration with the help of The United States.
Mossad & SAVAK (Iran's secret service) worked to support Kurdish insurgency in Iraq. Further strengthened the military cooperation. In 1960s, Israel even established a permanent delegation in Tehran.

There were other covert operations like- 'Operation Flower' a secret Missile
development project and Israel’s supply of military parts for Iran's F4 fighter jets. Israel even trained Iran's SAVAK officers.

Israel purchased a significant portion of Iranian oil under Shah's regime. While Iran used Israel as a middleman to sell its oil to third countries.
Iran was one of the main destinations for Israeli exports. Israeli companies, ranging from textiles, agriculture, electrical appliances, water, fertilizers, construction, aviation, shipping, gas, tires had been operating in Iran.

Both the nations established new companies in
Panama and Switzerland under a central legal entity
known as Trans-Asiatic Oil.

For Operation Flower which was worth a $1.2B project, Iran paid approximately $300 million in cash up front
and another $250 million in oil and thus became the financier for Israeli R&D projects.
Iran started the construction of missile assembly and test facilities, with the understanding that both countries armies would purchase the new defence systems once operational.

2️⃣ Economic Policies of the Shah included:

1) Oil Agreements:
The Consortium Agreement of 1954.
A binding contract between the Iranian government and a Western oil consortium that gave the consortium 40% ownership of Iran's oil production.

The agreement allowed the following western companies to operate were British Petroleum, Shell, Exonn, Mobil, Texaco, Iricon etc.
The agreement allowed the consortium to operate Iran's oil industry and keep half of its profits.

The 1973 Sale and Purchase Agreement was a 20-year contract that gave the National Iranian Oil Company (NIOC) complete control of Iran's petroleum industry.

The Shah however made
Frequent trips to the US, was more westernized. The Shah Paid a visit to West Germany and invited investments in Steel sector. Iran and West Germany signed an economic agreement to provide for Iranian exports of oil and natural gas to Germany. The Iranian government bought 25%
shares of Krupp Hüttenwerke (German for smelting plants), the steel subsidiary. Iran's Bushehr nuclear power plant was also designed and partially built by the German Siemens. In 1975, West Germany became the second supplier of non-military goods to Iran.
2) White Revolution:

Under this program, the landed minority was forced to give up ownership of vast tracts of land for redistribution to small-scale cultivators. The former landlords were compensated for their loss in the form of shares of state-owned Iranian industries.
These reforms eventually redistributed land to some 2.5 million families, established literacy & health corps to benefit Iran’s rural areas, further reduced the autonomy of tribal groups, and advanced social and legal reforms, more freedom to women to vote, participate in events.
3️⃣ What Went Wrong:

Land reform however, was soon in trouble. The government was unable to put in place a comprehensive support system and infrastructure that replaced the role of the landowner. The result was a high failure rate for new farms and a subsequent flight of
Agricultural workers to Tehran where a booming construction industry promised employment. There was a huge population shift to Tehran which led to Inflation, bottlenecks in the Economy. There was a huge problem of wealth redistribution.

Only Tehran was Westernized & developed.
The development of secular courts had already reduced clerical power over law and jurisprudence.

The Shah was seen as Westernizing Iran & alot of Crony capitalism which led to the clash of opposition.

The Shah failed to take support from the shia groups.

The Shah's role in
OPEC to increase oil prices led to a shift in Western interests & priorities.

In 1975, The Shah stated that Iran would demand a 15% increase in oil prices during an OPEC meeting in Vienna. He clamored for higher oil profits to finance his dreams of glory.

An article I found 👇🏻 Image
I watched a documentary which showed that SAVAK was suppressing opposition, silencing critics, crushing dissent. Opposition leaders were arrested. In August 1978, the deaths of about 400 people in the Cinema Rex fire claimed by the opposition as having been done by the Shah's.
To conclude- The forgotten partnership remains an essential chapter in the narrative of Middle Eastern politics.

Sources- TOI

Research Paper- A brief history of Israeli-Iranian cooperation & confrontation

Britannica.

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