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111. Monthly Project Status Report Prepared in the Central Intelligence Agency1

[Omitted here are operational details.]

C. REACTION: Political: The political atmosphere and the practical ruling authority of Iran has been in the throes of upheaval during the last two weeks of this month. Mosadeq’s resignation, Qavam’s appointment, the wholesale riot in Tehran, the Shah’s inability to take strong action, Qavam’s resignation, and Mossadeq’s re-appointment as Prime Minister has substantially changed the political picture of Iran. The Tudeh Party, with their advantage gained in joining with the National Front Party during the riots, plus the fact that loosely organized political “cliques” other than the National Front Party have been soundly defeated, is ensconced in a position similar to the one held in July 1951. [Page 310]At that time, the Tudeh Party offered a strong threat to the stability of the Government. Now, if economic chaos forces the failure of the Mossadeq Government and the position of the Shah, the Tudeh Party will in all probability be the only organized faction which will be in a position to “coup d’état” into power. Whether the Tudeh Party could maintain a consistent hold on the political ruling hand of Iran and whether they might possibly split into factions as a result of the Nationalism versus Communism conflict, is as yet undeterminable. The above represents a gist of opinions by the project case officer based on his knowledge gained from field and Department of State reports.

[2 paragraphs (27 lines) not declassified]

[Omitted here are operational details.]

  1. Source: Central Intelligence Agency, DDO Files, Job 59–00133R, Box 5, Folder 13, [cryptonym not declassified]. Secret.