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Lawrence Wittner

Lawrence Wittner

Posted: June 22, 2010 11:32 AM

BP's Other Gifts to America -- And to the World

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The offshore oil drilling catastrophe in the Gulf of Mexico brought to us by BP has overshadowed its central role over the past century in fostering some other disastrous events.

BP originated in 1908 as the Anglo-Persian Oil Company -- a British corporation whose name was changed to the Anglo-Iranian Oil Company two decades later. With exclusive rights to extract, refine, export, and sell Iran's rich oil resources, the company reaped enormous profits. Meanwhile, it shared only a tiny fraction of the proceeds with the Iranian government. Similarly, although the company's British personnel lived in great luxury, its Iranian laborers endured lives of squalor and privation.

In 1947, as Iranian resentment grew at the giant oil company's practices, the Iranian parliament called upon the Shah, Iran's feudal potentate, to renegotiate the agreement with Anglo-Iranian. Four years later, Mohammed Mossadeq, riding a tide of nationalism, became the nation's prime minister. As an enthusiastic advocate of taking control of Iran's oil resources and using the profits from them to develop his deeply impoverished nation, Mossadeq signed legislation, passed unanimously by the country's parliament, to nationalize the Anglo-Iranian Oil Company.

The British government was horrified. Eager to assist the embattled corporation, it imposed an economic embargo on Iran and required its technicians to leave the country, thus effectively blocking the Iranian government from exporting its oil. When this failed to bring the Iranians to heel, the British government sought to arrange for the overthrow of Mossadeq -- first through its own efforts and, later (when Britain's diplomatic mission was expelled from Iran for its subversive activities), through the efforts of the U.S. government. But President Truman refused to commit the CIA to this venture.

To the delight of Anglo-Iranian, it received a much friendlier reception from the new Eisenhower administration. Secretary of State John Foster Dulles had worked much of his life as a lawyer for multinational corporations, and viewed the Iranian challenge to corporate holdings as a very dangerous example to the world. Consequently, the CIA was placed in charge of an operation, including fomenting riots and other destabilizing activities, to overthrow Mossadeq and advance oil company interests in Iran.

Organized by CIA operative Kermit Roosevelt in the summer of 1953, the coup was quite successful. Mossadeq was placed under house arrest for the rest of his life, the power of the pro-Western Shah was dramatically enhanced, and the Anglo-Iranian Oil Company was once again granted access to Iran's vast oil resources. To be sure, thanks to the key role played in the coup by the U.S. government, the British oil company -- renamed British Petroleum -- henceforth had to share the lucrative oil extraction business in Iran with U.S. corporations. Even so, in the following decades, with the Iranian public kept in line by the Shah's dictatorship and by his dreaded secret police, the SAVAK, it was a very profitable arrangement -- although not for most Iranians.

But, of course, actions can have unforeseen consequences. In Iran, public anger grew at the Shah's increasingly autocratic rule, culminating in the 1979 revolution and the establishment of a regime led by Islamic fanatics. Not surprisingly, the new rulers -- and much of the population -- blamed the United States for the coup against Mossadeq and its coziness with the Shah. This, in turn, led to the ensuing hostage crisis and to the onset of a very hostile relationship between the Iranian and U.S. governments.

And there was worse to come. Terrified by the rise of Islamic fundamentalism on their southern border, Soviet leaders became obsessed with fundamentalist revolt in Afghanistan and began pouring troops into that strife-torn land. This was the signal for the U.S. government to back an anti-Soviet, fundamentalist jihad in Afghanistan, thus facilitating the growth of the Taliban and Al-Qaeda, who eventually turned their weapons on the United States.

Furthermore, as part of its anti-Iran strategy, the U.S. government grew increasingly chummy with Iran's arch foe, Iraq. As Saddam Hussein seemed a particularly useful ally, Washington provided him with military intelligence and the helicopters that he used to spray poison gas on Iranian troops during the Iran-Iraq war. Might not such a friendship, cemented with a handshake by Donald Rumsfeld, have emboldened Saddam Hussein to act more freely in the region in subsequent years? It certainly didn't improve U.S. relations with Iran, which today is headed by a deplorable government that -- consumed by fear and loathing of the United States -- might be developing nuclear weapons.

At this point, we might well wonder if it was such a good idea to overthrow a democratic, secular nationalist like Mossadeq to preserve the profits of the Anglo-Iranian Oil Company (now renamed BP). Indeed, given the sordid record of BP and other giant oil companies, we might wonder why we tolerate them at all.

Lawrence Wittner is Professor of History at the State University of New York/Albany. His latest book is Confronting the Bomb: A Short History of the World Nuclear Disarmament Movement (Stanford University Press).

 
 
 
 
 
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waltzacrosstexas
When in doubt... just ask "HER" to dance!
12:21 AM on 06/23/2010
It struck me, while in the middle of reading this, that the very reason that BP has been able to basically get away with sub-par construction, operations, and safety is directly related to the fact that BP must have some kind of "dirt" on our government... something like our government/CIA helping to over throw Mossedeq and the installation of the Shah.
04:22 AM on 06/23/2010
The simpler explanation is that our government isn't sufficiently competant to provide effective oversight. What do you think Barney Frank knows about deep-sea drilling? Jack squat!
02:30 PM on 06/24/2010
This article begs the reader to consider that perhaps the conspiracy theory about 9-11 isn't just a theory, anymore... If we've been in bed with Britain so long to force war on nations and countries to get to the oil, then why isn't it possible that we bombed our own citizens just to fire up a war in oil rich countries like Iran and Afghanistan. If it was just a war on "terror" why are we tearing down and then rebuilding like busy ants? Why are we pouring so much money into their infrastructure and construction when our own country is degrading daily... And if we ended BP's contracts to drill in the waters and lands of the USA, might not Britain start airing our dirty laundry? Things that make you go "Hmmm..."
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HUFFPOST SUPER USER
tuneone52
11:25 PM on 06/22/2010
When a resource that is vital to our very life is held hostage by a few, Many will suffer, Our dependence on oil held by other countries must end, We must work now to free ourselves of this reliance on any energy to the point that our country would stop without it.We must be energy independent thus we will not be at the mercy of a few then we can avoid the the real shakedown. We must find other forms of energy it is vital for us and our planet!
ThatsTheTheWayItIs
religion, ideology, partisanship are delusional
10:09 PM on 06/22/2010
Thanks for this article! For an overview of this stuff, and a GREAT READ, a page-turner:

"OVERTHROW: America's Century of Regime Change from Hawaii to Iraq" by Stephen Kinzer
06:27 PM on 06/22/2010
Perhaps the history professor would care to fill us in on the history of legislative acts of attainder; why it was a major issue in the Revolutionary War, and why and where the US Constitution forbids them.

Supreme Court cases:

Cummings v. Missouri

"A bill of attainder, is a legislative act which inflicts punishment without judicial trial and includes any legislative act which takes away the life, liberty or property of a particular named or easily ascertainable person or group of persons because the legislature thinks them guilty of conduct which deserves punishment."

U.S. v. Lovett

"Legislative acts, no matter what their form, that apply either to named individuals or to easily ascertainable members of a group in such a way as to inflict punishment on them without a trial, are 'bills of attainder' prohibited under this clause."
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HUFFPOST SUPER USER
alimostofi
Astrologer, Commentator
05:00 PM on 06/22/2010
LW please read this wsj report reprinted here http://mrzine.monthlyreview.org/2009/safdari201209.html
04:50 PM on 06/22/2010
When you steal other's people's things, thay tend to want to hurt or kill you. When you do it over a lifetime, they want to hurt and kill your whole family. When you do it over generations they want to annihilate your entire society. I think we're there.
04:45 PM on 06/22/2010
Obama Administration Knew About Deepwater Horizon 35,000 Feet Well Bore, Green-Lighted And Fast-Tracked Project

www.OilPrice.com

President Obama and Secretary of Interior Ken Salazar, Secretary of Energy Steven Chu, and Defense Secretary Robert Gates were informed that BP would drill an unprecedented 35,000 feet well bore at the Macondo site off the coast of Louisiana. In September 2009, the Deepwater Horizon successfully sunk a well bore at a depth of 35,055 below sea level at the Tiber Prospect in the Keathley Canyon block 102 in the Gulf of Mexico, southeast of Houston.

According to the Wayne Madsen Report (WMR) sources within the U.S. Army Corps of Engineers and the Federal Emergency Management Agency (FEMA), the Pentagon and Interior and Energy Departments told the Obama Administration that the newly-discovered estimated 3-4 billion barrels of oil in the Gulf of Mexico would cover America's oil needs for up to eight months if there was a military attack on Iran that resulted in the bottling up of the Strait of Hormuz to oil tanker traffic, resulting in a cut-off of oil to the United States from the Persian Gulf.

Obama, Salazar, Chu, and Gates green-lighted the risky Macondo drilling operation from the outset, according to WMR's government sources.
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05:19 PM on 06/22/2010
Oh ALL RIGHT.
Now we can blame this mess on Obama and call it a day.
Next!
01:25 PM on 06/22/2010
The history of oil is tragic. Nothing is wrong if the oil companies can make a lot of money and the people will never compain if they can get cheap gas. It is like a drug cartel. Producers and buyers and absolutely no concern for ethics. The Emirates - mapped and created by the British. Iraq and Iran - creations of the British. The cause of the invasion of Iraq. Iraq under Saddam Hussein controlled its oil. Now, it is no longer controlled by Iraq but by the oil companies. The US soldiers died so you could have cheap gas and throwaway bottles and sald in clear plastic boxes. And American treasure was spent for that. It would be funny if it weren't so incredibly evil. I walk which is good for my health and bad for the oil companies. You should try it. I love knowing my money isn't going into their pockets.
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BBackSoon
Hello, I must be going.
01:05 PM on 06/22/2010
'Of course, you have to remember why we're over there in the first place...(pause, then applause) Oh, yeah! It always comes to me. To free those people...So they can have industry- yeah! US industry- YEAH! Those are the middle two letters of the word 'industry'..US. And that is our job around the world. Run in, free some people and whip a little industry on them. "Here's your industry. Cool it awhile, willya?" So that they can have the benefits of industry that we have come to enjoy...COUGH!'

by George Carlin - Muhammad Ali, America The Beautiful
12:24 PM on 06/22/2010
great read and essentially "Just the facts, ma'am". As I like to say "Democracy is a great idea..(pausing, then a stern look)..Just as long as you vote OUR way"...(so don't be thinking of nationalizing any of those resources WE need/want)
12:17 PM on 06/22/2010
Thanks for a great piece. It's a must read for all Americans who can't understand why so many people in the middle east don't like us.
As for Big Oil's involvement at the heart of this sordid chain of events, it would be interesting to add up the costs of all the wars fought over oil and divide by the number of barrels produce to arrive at a true cost of our fuel.