371. Quarterly Report Prepared in the Directorate of Plans, Central Intelligence Agency1


April–June 1954

1. Summary of PP/PM Action:

The field has continued to give extensive financial, material, and guidance support to an agent highly placed in the Department of Propaganda so as to make more effective the government propaganda program of: 1) preparing public opinion for an oil settlement, 2) convincing the people that the policy of the Mossadeq government was destructive and dangerous in its communist collaboration and usurpation of power, and 3) increasing public support for the Shah and Zahedi. In addition to continued broadcasting, publishing, and film production, a popular Tudeh song was given anti-communist lyrics and was broadcast frequently over the Tehran and provincial radio stations.

[5 paragraphs (24 lines) not declassified]

2. Summary of Results:

The considerable amount of propaganda put out over the principal informational media has probably increased the chances of public acceptance of an oil agreement, if one is concluded. Propaganda and political action has helped Zahedi retain the premiership in the face of strong pressure from rival political factions.

[2 paragraphs (6 lines) not declassified]

[Page 927]

3. Significance of Results:

While the current program is meeting its general objectives, the grave problems created by Iranian political instability have continued to mount. Public antagonism to Zahedi is generally constrained due to government security measures; however, within the Majlis and the cabinet outright opposition to Zahedi is evident. Direct Station pressure upon the Shah has been successful in that the Shah is now giving full support to Zahedi. The Shah has urged, through the Speaker of the Majlis, support of an oil settlement. The Station has reported that ratification of an oil agreement by the Parliament will require concerted effort to overcome present Majlis opposition. In view of the above, and considering the serious consequences to Iranian stability were Zahedi to be removed at this time, a stepped up program in support of the present government is being prepared.

[name not declassified]
Acting Chief, NEA/4
  1. Source: Central Intelligence Agency, DDO/IMS Files, Job 81–01061R, Box 3, Folder 4, Quarterly Report April–June 1954. Top Secret.