Mohammad Mosaddeq nationalizes Iran's oil
On 1 May, Mosaddeq nationalized the AIOC, cancelling its oil concession due to expire in 1993 and expropriating its assets. The next month a committee of five majlis deputies was sent to Khuzistan to enforce the nationalization.
Our long years of negotiations with foreign countries… have yielded no results this far. With the oil revenues we could meet our entire budget and combat poverty, disease, and backwardness among our people. Another important consideration is that by the elimination of the power of the British company, we would also eliminate corruption and intrigue, by means of which the internal affairs of our country have been influenced. Once this tutelage has ceased, Iran will have achieved its economic and political independence.
”— Mohammed Mosaddeq in a 1951 speech
The Iranian state prefers to take over the production of petroleum itself. The company should do nothing else but return its property to the rightful owners. The nationalization law provide that 25% of the net profits on oil be set aside to meet all the legitimate claims of the company for compensation…It has been asserted abroad that Iran intends to expel the foreign oil experts from the country and then shut down oil installations. Not only is this allegation absurd; it is utter invention…”— Mohammed Mosaddeq in a 1951 speech