231. Monthly Report Prepared in the Directorate of Plans, Central Intelligence Agency1


June 1953

A. General Developments

1. On the surface the internal political situation showed little change and relative quiet prevailed during the month. In the Majlis where neither Mossadeq supporters nor opposition elements were able to exert control, both elements concerned themselves largely with the imminent election of a Majlis President. Kashani, who is seeking re-election, Qanatabadi, a leading Kashani supporter, made violent attacks on the Mossadeq government.

2. While the relative strengths of the Mossadeq supporters and the opposition showed no positive change, new cracks in Mossadeq’s political armor were, however, indicated. The Qashqai Khans, staunch backers of Mossadeq, intimated a willingness to throw their support against the Prime Minister under certain conditions.

3. The Tudeh Party, whose immediate Iranian target is the Shah, continued to throw its support to Mossadeq. On the occasion of a Mossadeq inspired pro-government mass meeting, the Party demonstrated its ability to assemble and control its followers. The Tudeh assembled 12,000 well disciplined adherents as against 3000 produced by the government. Mossadeq moved to win the support of retired army officers by issuing orders to government departments to give them employment. He has also reportedly improved his relations with the Shah by granting permission for the return of the Queen and other members of the royal family to Iran.

4. Much speculation has been devoted to recent negotiations between Mossadeq and Soviet Ambassador Sadchikov. It has been suggested that these talks concern revision of the 1921 Irano-Soviet agreement, the return of Iranian gold held in the USSR, regulation of disputed boundaries, further increasing of Soviet-Iranian trade, and a general rapprochement between the two countries.

5. No serious internal disturbances occurred during the month, indicating continued effective control by the government security forces, [Page 611] although a generally good harvest probably contributed to the prevailing quiet in the provinces.

6. The government is confronted by mounting economic problems. Faced with continued inflationary tendencies—the rial dropped to 100 to the dollar—the government has placed new restrictions on foreign trade. Mossadeq is reportedly anxiously awaiting the return of Ambassador Henderson, hoping that he will bring some assurances of increased U.S. economic assistance.

B. Station Synopsis

[4 paragraphs (10 lines) not declassified]

C. Operational Summary

Political and Psychological Warfare

[5 paragraphs (26 lines) not declassified]

Paramilitary Operations

[2 paragraphs (4 lines) not declassified]

[name not declassified]
  1. Source: Central Intelligence Agency, DDO–IMS Files, Job 81–001061R, Box 2, Folder 1, Monthly Report—June 1953—Country Summaries and Analyses. Top Secret; Security Information.