EIR istory H

Part 1

When americans Fought For Irans Sovereignty

by Dean andromidas
InthecityofTabrizinnorthernIran,liesthetombofa youngAmericanmissionaryteacherwhodied100ago, onApril19,1909.Ifonevisitsthistomb,eventoday, onemightfindfreshyellowrosesplacedbeforeit,for theyoungman,whosenamewasHoward Baskerville, diedthedeathofamartyrattheageof24,andisreveredbymanyinIranastheAmericanwhogavehislife foranIranianrevolutionknownasthePersianConstitutionalRevolution.WhenannouncingtohisAmerican colleagueshisdecisiontojointhatrevolution,hesaid thatPersiasstrugglewashis.IamPersias. The narrative of American-Iranian relations has beendominatedbytheoverthrowofaprimeminister andahostagecrisis.Thisarticlewilltellaverydifferent storythattakesplaceacenturyago.Itwilldealwith Americanswhosenamesdonotappearinthehistory booksoftheirowncountry,butareverywellknownin thehistoryofIran.Thesemenworkedinthetraditionof JohnQuincyAdams.TheysawIransstruggleasthey knewtheirown:asonebetweenEmpireandanational sovereigntythatprotectstheirinalienablerights,or,as John Quincy Adams once wrote, a contest between inveteratepowerandemergingright. They brought to their engagement with Iran the spirit of a foreign policy best defined byAdams in a speechonIndependenceDay,July4,1821:Wherever thestandardoffreedomandindependencehasbeenor shallbeunfurled,therewillherheart,herbenedictions,
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andherprayersbe.Butshegoesnotabroadinsearchof monsterstodestroy.Sheisthewell-wishertothefreedomandtheindependenceofall.Sheisthechampion andvindicatoronlyofherown.Shewillrecommend thegeneralcause,bythecountenanceofhervoice,and thebenignantsympathyofherexample....Hergloryis not dominion, but liberty. Her march is the march of mind.Shehasaspearandashield;butthemottoupon hershieldisFreedom,Independence,Peace.... This report will deal with an American advisory mission, led by a young financial-economic expert, William Morgan Shuster,who,attherequestofthe IraniangovernmenttotheUnitedStatesgovernment, arrivedinIranin1911toreorganizethefinancialadministrationofthecountry.Whilethegoalseemedtobe the relatively straightforward task of modernizing a backwardandunderdevelopedcountry,theteamfound itself, along with the Iranian people, confronted with thefuryoftwomightyempiresdeterminedtoruthlessly sabotageitsefforts,andtocrushIranssovereigntyand anyhopeforitsprogressiveeconomicdevelopment. Thisstoryelucidatesthehistoricdeterminationof theAnglo-Dutch oligarchy to deploy all its power to crushanyeffortbytheUnitedStatestoengagethenationsofEurasiawithaforeignpolicypremisedonprinciplesdefinedbyJohnQuincyAdams. ItalsounderlinesthetragicfactthattheU.S.lackof productive relations, for the past three decades, with
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oneofthemostimportantnations on the Eurasian landmass, has been a failing that onlyservesthedesignofthe BritishEmpire.Moreover,denying the United States and Iranmutuallybeneficialrelations is key to the empires abilitytokeepallofEurasiain itsthrall.Thisauthorbelieves that,inthepersonofShuster, onefindsarolemodelforthe policymakerwhoisconcerned withengagingIran. Thisreportisintwoparts. Part 1, the main narrative, confines itself primarily to events in Iran. After a short elucidationoftherelevanthisMage Publishers torypriortothearrivalofthe Shustermission,itdealswith mission itself. The principal sourcesareShustersmemoirofhiseightmonths in Iran, The Strangling of Persia,1 and official documentsaswellasnewspaperreportsofthe time.Part2,whichwillappearinaforthcoming issueofEIR,dealswiththeTripleEntenteand, particularly, theAnglo-RussianAgreement.An understandingofthestrategicimpactofthisBritish-orchestrated policy which ultimately led to theFirstWorldWar,isessentialtounderstandthe determinationoftheBritishtocrushIranianconstitutionalism in general, and the Shuster Missioninparticular.Shuster,whowrotehismemoir in1912,wasfullyawareofthemissionssignificance.

W. Morgan Shuster headed a U.S. delegation to Persia in 1911, to help the new government get its finances under controland withstand imperial intrigues. His memoir is shown here, along with a photo of the Shuster delegation and other American officials in Tehran. Shusters deputy wrote to President Taft, the injection of Mr. Shusters vigorous and upright personality into such a putrid mass, has created more stir and consternation than anything which has occurred in recent years. . . .

Iran Between Empires

IntheUffiziGalleryinFlorencetherehangsaportraitofIsmailI,thefounderofIransSafaviddynasty. PaintedbyafollowerofthenotedVenetianartistGentile Bellini, it attests to the influence the Venetian Empire,thementoroftheBritishEmpire,hadonthe Safavidcourt.Establishedin1501,theSafaviddynasty
1. W.MorganShuster,The Strangling of Persia: A Story of European Diplomacy and Oriental Intrigue(NewYork:TheCenturyCompany, 1912); available at http://www.archive.org/details/stranglingofpers00shusuoft,andasareprintfromMagePublishersofWashington, D.C.,2005.

waspatronizedbytheVenetiansasacountertotheir principalrival,theOttomanEmpire.Havingitsorigins intheSafaviyaSufiorder,theSafavidregimecombined agroupofAzariclansandShiaclergy,thattransformed Persia from a predominantly Sunni Muslim country into the largest Shia nation in the region. Here, the Shah, through a powerful army, held sway over the State, while the clergy, through the administration of Sharialaw,heldswayoverthepeople. IthasbeensuggestedthatVenicehadahandinthe creationofthisdynasty,inanefforttocreateapowerful stateontheflankoftheOttomanEmpire.Whetherthat istrueornot,certainlyapowerfulShiastateserved Venicesgeopoliticalpurpose.Thefactthatitwasofthe
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ShiabranchofIslam,detestedasa rights to all railways, tramways, heresybyallSunnis,assuredthatit miningconcessions,constructionof wouldneverallyagainstVenicewith irrigation and waterworks, and exploitation of state forests for 70 theSunniOttomanEmpire.Thuswe years,aswellasa25-yearmonopoly have the foundation of the British overPersianCustomsandfirstoption Empires creation of the Arab-Iranianrift,whichwasthebasisforthe onaconcessionforprovidingpublic utilities. British inspiration of the Iran-Iraq Even the imperialist predator War(1980-88),atapointthattheIslamicRepublicwasbeingformedin LordCurzonwrotethatitwasthe Iran amidst bloody intrigue. This most complete and extraordinary processcreatedastrategicfearofthe surrenderoftheentireindustrialresources of a Kingdom into foreign ArabworldwithinIran. hands that has probably ever been TheEnglishthemselvesbecame dreamed of, much less accominvolvedinIran,atthesametimeas Persias Shah Ismail I (1487-1524), plished,inhistory.2 Venice.In1550,theEnglishcreated painted by an unknown Venetian artist. DespitebeingappointedaKnight the Muscovy Company, which, by Venice patronized the Safavid dynasty as oftheOrderoftheGarterbyQueen the end of that century, was busy a counter to the Ottoman Empire. Victoria,whileonavisittoLondon with an effort to trade with Persia, in1873,theShahhadtocancelthe throughRussiaviatheVolgaandthe concession,becauseofbothRussianandlocalpopular Baltic,inanattempttooutflankthepiracyoftheSpanish,Venetians,Portuguese,French,andDutch. opposition.Nonetheless,by1889,hewasabletoaward WiththedeclineoftheSafavidEmpirebytheendof Reuterabankingconcession,whichledtothefounding the 18th Century, Iran became a pawn in the Great oftheImperialBankofPersia,backedbyaRoyalCharGame between the powerful Russian Empire to its ter from Her Majestys government. The bank was north,andtheBritishEmpire,withitsdomainsinIndia, giventherighttoprintPersiancurrency. ReuterwasfollowedbyanotherBritishsubjectin toitseast. Afteralapseofalmosttwocenturiesofintermittent 1901, William Knox DArcy, who was given an oil interestinexploitingPersia,inthemiddleofthe19th concessionthatcoveredtheentirelandareaofPersia, Century,thethreatoftheRussianEmpiresexpansion exclusiveofthefiveRussian-dominatednorthernprovdeep into Central Asia was seen by the British as a inces. This became theAnglo-Persian Oil Company, menacetotheirIndiancolonies.TheBritishthentooka foundedin1908;in1913,withtheaidofFirstLordof veryseriousinterestinthegeopoliticalimportanceof theAdmiraltyWinston Churchill,HerMajestysgovIran.LikeAfghanistan,Iranwasseenasabufferstate ernmenttookoverthecontrollinginterests. Thus were born the two corporations which were betweenBritishIndiaandtheRussianEmpire.London centraltoBritishcontrolofIranforoverhalfacentury, launcheditsfirstwaragainstIranin1856,onthepretext of forcing it out of the traditionally Persian-held untilPrimeMinisterMohammadMossadeghnationalcity of Herat inAfghanistan. This was done through izedthemin1951. The only modern bank in the land, the Imperial militaryoccupationofthePersiancityofBushehr,on thePersianGulf.Evenafterthepeaceagreement,the BankofPersia,penetratedthecommerciallifeofthe BritishremainedinBushehr,whichbecamethemain country,especiallyitsmerchantclass,whileAnglo-PerentrypointofBritishgoodsintothecountry.Toprotect sianoildominatedthesouthernregion,whereitcultitheir economic interests, they eventually organized vatedtieswithallthelocaltribes.Themostimportant tribewasthepowerfulBakhtiaris,forwhichtheBritish theirownmilitaryregiment,thePersianRifles. Inthe19thCentury,theBritishconvincedtheShahs createdtheBakhtiariOilCompany,inordertoconduit ofPersiatofinancearoyallifestyleforthemselvesby 2%oftheprofitstothetriballeaders. selling the natural riches of their country. In 1872, Baron Julius de Reuter,aBritishsubject,receiveda 2. George N. Curzon, Persia and the Persian Question (London, concessionforamere40,000,givinghimmonopoly 1892).
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The Bear to the North

SincethetimeofPetertheGreat (1672-1725), the Russian Empire pushedsouth,seizingPersianterritory in the Caucasus andAzerbaijan, and commercially penetrating thenorthernCaspianSeaprovinces ofIran.Itestablisheditsownbank, the Banque dEscompte (the Loan andDiscountBank),asubsidiaryof the State Bank of St. Petersburg, whilewinningaconcessiontobuild ahighwaybetweenJolfaandTehran, forthefurthercommercialpenetrationofthenorthofPersia.Whilethe BritishhadtheirPersianRifles,the Russians established the Cossack Brigade, which formed the Shahs Iranian Historical Photograph Gallery, www.fouman.com RoyalGuardandhadallRussianofThe Imperial Bank of Persia, chartered by the British monarchy in 1889, dominated ficers(thesoldierswerePersians).It commerce there for decades. When it refused loans for the development projects was from this Brigade that Reza Shuster wanted, he attempted to bring in an American bank instead. Here, the Imperial Khanbeganhiscareerasaprivate Banks Tehran headquarters in 1938. soldier, later founding the Pahlavi The Americans Amid the Imperialists Dynastyin1927,underBritishpatronage. BythetimetheUnitedStatesarrivedonthescene, Bytheendofthe19thCentury,RussiaandGreat RussiaandBritainhadallbutestablishedtheirrespecBritainweretheexclusivecreditorsofthePersiangovernment.Theloanstheygavewereneverextendedto tivespheresofinfluence. actuallybuildanything,butonlytopartiallyfillthenorAn Iranian attempt to establish relations with the mallyemptyPersianTreasury;muchofthemoneywent UnitedStateswasinitiatedbyMirza Taqi Khan AmirnotonlytopayfortheroyallifestylesoftheShahand Nezam,PrimeMinistertoNasir al-Din Shah Qajarin thegrandeesofthecourt,manyofwhomwereinthe 1856.AlsoknownasAmir Kabir,hewasperhapsthe payoftheBritishortheRussiansorboth,butalsofor mostimportantstatesmaninIranshistory.Hefounded theDaral-Funun,IransownversionofFrancesEcole theRussianofficerswhocommandedtheCossackBriPolytechnique. gadeandtheforeignadvisorsplacedinthePersiangovernmentbyRussiaorGreatBritain.Whilethepurpose Butitwasntuntil1883thatthefirstAmericanministerarrivedinTehran,Samuel Greene Wheeler Benoftheloanswasnevertiedtoanythinguseful,theirrepayment was always very specific, usually tied to an jamin.BorninGreece,thesonofmissionaries,Benjaimporttariff;assoonasthistariffwascollected,upon minwasanartist,journalist,poet,anddiplomat.Inhis entryofthegoodsontoIraniansoil,itwasdepositedat bookPersia and the Persians,3Benjaminwrotethatthe theImperialBankofPersiaortheBanquedEscompte, majorobstacletotheprogressofPersiaisthecontinudependingwhetherentrywasintheBritishsphereof ousrivalrybetweenEnglandandRussia,andtheactive influence in the South or the Russian sphere in the interferenceofthelatterwitheverymovementwhich North.TheheadofthePersianCustomsHouse,who tendstoelevatePersia.Benjamindetailshow,through also controlled the accounts at the respective banks, a combination of force and bribery, Russia sought to was always a European from one of the lesser absorbIranintoitsempire,whiletheBritishschemed powersusually Belgiumwho not only assured tokeepRussiaatbayfromitsIndianempireallatthe paymentoftheRussianandBritishdebt,butwasable tostealenoughforhimselfsohecouldretireincom3. S.G.W.Benjamin,Persia and the Persians(Boston:Tickner&Company,1887). fort.
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expenseofIranssovereignty.If pense of the peace and life of a onewereaskedwhetherthePercountrywithsograndahistoryas Persia. sians in their hearts favor either One of Benjamins successide,hewrote,beyondareadiness to accept their bribes, I sors, E. Spenser Pratt, on Jan. 10,1888,sentadispatchtoSecshould emphatically reply that retaryofStateThomasF.Bayard theycordiallyhatebothEngland reporting on his meeting with andRussia,andwouldgiveglory Persiasnewministeroffinance, toGodifbothcouldbeabolished of the interior, and the Court, fromtheearth.... Emin e Soultan, in which the For Benjamin, time was on latter expressed in very strong the side of Iran, for what any termsthedesiretoseetheestabpower proposing to absorb lishmenthereofAmericancomPersiamusttakeintohercalculations,isthefactofthewonderful mercial and industrial enterprises.WhilePersiahadinvited national vitality of that country. Europeans to help develop its In this respect the Persians resemble the French. What Euroimmensenaturalresources,he peannationbesidesFrancewould explained, they had merely Nasir al-Din Shah Qajar in 1889. beinherpresentprosperousconsoughttheirownadvantagewithdition after the convulsions and out doing anything in return calamitiesshehasundergonewithinthepastcentury? either for the benefit of the country or the people. Not once, but many times has Persia likewise been EmineSoultanwentontosaythattheUnitedStates overrun and apparently subdued. But after each conwasanationthathadsonoblytakentheleadinthe questshehasthrownoffherchainsandarisenwithremarchofcivilizationandtheShahandhisGovernnewedvigorandsplendor. mentnowlookedtomyfriendlyefforts...toinitiatea AsforRussia,lookingtwodecadesintothefuture, movewhichwouldresultinbringingaboutmoreintiBenjaminwrote,shewillalwaysendeavortodominate matecommercialrelationsbetweenthetwocountries andopenthewaytoPersiasindustrialregeneration Persia,untilherinternalneedsandrevolutionsinevitablydemandallherattention,andforcehertogiveher throughAmericanagency. undividedenergiestotheadjustmentandregulationof By June, in furthering this effort, Persia named Hadji Hossein Kouli Khan Motamed Vasareasthe affairsathome. ConcerningtheBritishEmpireinIndia,Benjamin envoy extraordinary and minister plenipotentiary of wrote:ithasnowbecomeaquestion,howmuchlonger PersiatotheUnitedStates. TheUnitedStateshadnogreatstrategicorcommershe can preserve her dominion over that vast empire inhabitedbyabraveandintelligentpeople,whounder cial interests to draw it to Persia, and therefore, the theruleofEnglandarelearningtowieldtheweapons hoped-forintimatecommercialrelationsdidnotmathat will in turn expel her from India. One secret of terialize.Nonetheless,agooddealofAmericanChristianmissionaryactivitydidtakeplaceinPersiaasearly Englandssuccessinthatquarterhasbeenthedifferenceofraceandreligion,whichexistsintheseething as1834.ThemainimpactwasnotthespreadofChrispopulationbetweentheHimalayasandCapeComorin. tianity,butthespreadofeducation,and,bytheendof the 19th Century, dozens of missionary schools had OnceletthehateandrivalrywhichexistbetweenMahometans,Buddhists,andHindusbelaidaside,andone beenestablished.ButeventhisactivitybyAmericans ofthegreatestsafeguardsoftheBritishdominionwould lefttheBritishuneasy.Therefore,Britishmissionaries, giveplacetoaninsurmountableperil. onthepretextofnotwantingawastefulduplication Inconclusion,Benjaminwrote,WhileAmericans, ofeffortbyU.S.andBritishmissionaries,cametoan as citizens of a nation on friendly terms with both agreementwiththeirU.S.counterpartstoconcentrate powers,wishforRussiaalltrueprosperity,theyaseartheiractivityintheNorth,intheRussiansphere,and nestlydesirethatsuchprosperitymaynotbeattheexoutsidetheBritishsphere.
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Prelude to Revolution
In1890,Nasiral-DinShahgrantedatobaccoconcession to the Imperial Tobacco Company of Great Britain,givingitexclusiverightstoprocess,sell,and exportallofIranslargetobaccoproduction.Thus,an industry, which supported the livelihood of millions, wasgivenovertoaBritishprivatecompany. In 1891, when the first company agents arrived to startpurchasingthetobacco,theyweremetbymassprotests, including the closing down of bazaars in all the majorcities,and,inDecember1891,Grand Ayatollah Mirza Shiraziissuedafatwaagainstsmoking,which wasuniversallyadheredto.EventheShahsharemrefrainedfromsmoking,anditwasreputedthattheShahs wivesrefusedtofillhispipe.ByJanuary,theShahcancelledtheconcession,andthepeoplewontheirfirstbattle againsttheselloutoftheircountry.Butsoweakwasthe Persiangovernment,thatBritainforcedthegovernment topayanindemnityof500,000,whichwasborrowed bythePersiangovernmentat6%annualinterest. OnMay1,1896,afterareignofalmostfivedecades, Nasiral-DinShahwasassassinatedbyafanaticnamed Mirza Muhammad Riza,AsShusterwritesinhisThe Strangling of Persia,althoughnomotivewasgiven,it wasnotunconnectedwiththegeneralbeliefthattherights ofPersiawerebeingrapidlysoldouttoforeigners. OnJune8,1896,Muzaffarud-Din Shahascended thethrone.Hisreignwasnolessprofligatewiththeresources of Persia than that of his father, and by July 1906,intheshadowofaweakenedRussia,itselfinthe throesofrevolution,popularagitationbegandemandingthegrantingofaconstitution.Themostdramatic manifestationofthistookplacewhen14,000men,organizedbythemullahs,tooksanctuaryintheBritish Legationcompound.Followedbytheclosingofthebazaarsandotherrelativelypeacefuldemonstrations,the 14,000refusedtoleavetheBritishcompounduntilthe Shahhadgrantedthemaconstitution,tobeguaranteed bytheBritishauthorities. OnAug.12,1906,Richmond Pearson,theAmericanministerinTehran,wrotetoSecretaryofStateElihu Rootthatapopularagitation,similartothatinRussia, demandingconstitutionalreformsbutlessviolent,has triumphed in Persia.... Shah yielded and conceded constitutionalformsofgovernment,includingnational legislative forms of government, including national legislativeassembly,electiveassembly,newmethods andnewera.The14,000refugeesencampedintheBritish government grounds returned to their homes and
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Nasir al-Din Shah, who gave the British exclusive rights to huge chunks of his countrys resources and industry, kisses the hand of Queen Victoria (magazine dated July 13, 1859.) She made him a Knight of the Order of the Garter.

hundreds of political exiles have been recalled with honorandreceivedwithilluminationstopraisemanifestationandpopularrejoicing.... Ten days later, Pearson sent a copy of the Shahs decree toWashington, with a report on the situation. Afterlistingthereasonswhyhiscolleaguestheministersofothercountriesthinkthattherevolutionwill fail,duetothelevelofpovertyandilliteracy,thelackof amiddleclass,thefactthataconstitutionalgovernment hadneverbeenformedinaMuslimcountry,etc.,nonetheless,hewrote,itiscertainthatacommitteeofeight, appointedbytherevolutionaryleaders,isnowactively atworkonaconstitution,anovelanddifficultundertakingintheancientKingdomofIran,whichsincethe timeofAhasuerus,haspatientlysupportedascoreof dynastieswithoutonceattemptingtodivideortoquesHistory 47

tiontherightsofthegoverningmonarch. Thefurtherdevelopmentofthisstrugglewillnaturallyattracttheinterestsandsympathyofthefriendsof libertythroughouttheworld.4

The Triple Entente

WhiletheIranianpeopleweretakingtheirfirststeps toward self-government, Britains King Edward VII was setting alliances into motion that would lead to worldwar.ThesealliancestheEntenteCordialebetweenGreatBritainandFrance,andtheAnglo-Russian ConventionareknowncollectivelyastheTripleEntente,andwereintendedtoencircleGermany. The Anglo-Russian Convention, signed Aug. 31, 1907,wasanEntentesealedwiththebloodofIran.Its formalpurposewastodemarcatetheboundariesofthe twoempires,whichdominatedtheentireEurasianlandmass.ItdealtspecificallywithAfghanistan,Tibet,and Persia;thelastwasaccordedthestatusofabufferstate, butinrealityitwastobecomeaprotectorate,administered as a condominium between the two empires throughthecreationofspheresofinfluence. Thispieceofhistoricimperialsophistrystated: The Governments of Great Britain and Russia having mutually engaged to respect the integrity and independenceofPersia,andsincerelydesiringthepreservationoforderthroughoutthatcountryanditspeaceful development, as well as the permanent establishmentofequaladvantagesforthetradeandindustryof allothernations; Consideringthateachofthemhas,forgeographical andeconomicreasons,aspecialinterestinthemaintenanceofpeaceandorderincertainProvincesofPersia adjoining,orintheneighborhoodof,theRussianfrontier ontheonehand,andthefrontiersofAfghanistanandBaluchistanontheotherhand;andbeingdesirousofavoidingallcauseofconflictbetweentheirrespectiveinterests intheabove-mentionedProvincesofPersia.... The agreement proceeds to divide the assets of Iranwhichnationwasnotevenconsultedanddefinestherespectivespheresofinfluence,theNorthfor Russia,theSouthforBritain,andaneutralzonein between.Bothagreenottoseekforthemselves,orin cooperationwiththirdparties,anyConcessionsofa political or commercial naturesuch as Concessions forrailways,banks,telegraphs,roads,transport,insurance,etc.,intheotherssphere.Theyfurtheragreedto
4. Foreign Relations of the United States,Aug.12,1906.

priorconsultation,ifeitheropposedtheotherinseeking aconcessionwithinneutralzone. ThedocumentevenprovidedfordividingupCustomsrevenuesforthepaymentoftheirrespectivedebts tothePersiangovernment,wherethosecollectedinthe RussianspherewouldbeusedtopaydebttotheRussianBanquedEscompteetdesPritsdePerse,andthose fromthePersianGulfandtheSouth,aswellasthose ofthefisheriesonthePersianshoreoftheCaspianSea andthoseofthePostsandtelegraphs,shallbedevoted, asinthepast,totheserviceoftheloansconcludedby theGovernmentoftheShahwiththeImperialBankof Persia. ArticleFiveisdirectlyrelevanttothefateofMorgan Shuster.Itstatesthatsinceitwasnecessarytoestablishcontroloverthesourcesofrevenues[that]guaranteeregularserviceofloanstoeachothersbanks,the British and Russian Governments undertake to enter beforehand into a friendly exchange of ideas with a view to determine, in agreement with each other, the measuresofcontrolinquestionandtoavoidallinterference which would not be in conformity with the principlesgoverningthepresentAgreement.5 It was this friendly exchange of ideas between GreatBritainandRussia,thatcrushedtheIranianrevolution. Assoonasthistreatywassigned,Londonsimply waitedforapretexttoigniteworldwar,aimedatmaking itselftheseatofaglobalworldempire.Withinalittle morethanadecade,theempiresofGermany,AustroHungary, Russia, and the Ottoman Empire would all butdisappear.After1907,aseriesofinternationalcrises would build, until the assassination of the Habsburg ArchdukeFerdinandinSarajevoin1914.Theearlier crises included the Moroccan crisis of 1911, various Balkancrises,theItalian-TurkishWar,andthedevelopmentsinPersia. TheIranianconstitutionalmovementwoulddisappear,asyetanothercruelcrushingofaspirationsofnations on the way to building the British Empire. But unlike inAfrica and otherAsian nations, there were Americansatthecenterofthisone.

Sealing a Convention with Blood

ThefirstMajlis(nationallegislativebody)wasconvenedonOct.7,1906,andcompletedadraftconstitu5. Great Britain, Parliamentary Papers, 1908, Vol. CXXV, Cmd. 3750.

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tion,signedonDec.31,1906,which Majlis,andthelatterhadnodesireto stated: under the rule of law, the push the situation into open civil Crown is a divine gift given to the war. In May 1908, the sides concluded an agreement whereby the Shahbythepeople.Sixdayslater, Mozafaradeen Shahdied.Hisson Shah would dismiss several of the and successor, Mohammad Ali more reactionary of his courtiers, Shah, did not agree with this idea. oneofwhomtookrefugeintheRusShuster described the new Shah as sianlegation.ButfortheBritishand perhaps the most perverted, cowRussians, there was no room for ardly,andvice-soddenmonsterthat compromise,andonJune2,nodoubt haddisgracedthethroneofPersiain afterafriendlyexchangeofideas, many generations, who became the Russian minister Nicholas the avowed tool and satrap of the HartwigandBritishchargdaffairs Russiangovernmentanditsagentin CharlesMarling,presentedthePersianForeignMinisteranultimatum, Persiaforstampingouttherightsof threatening Russian intervention if thepeople. the Majlis continued its opposition ByJanuary1907,theMajliswas totheShahswishes.OnJune3,the prepared to institute financial and Shahremovedtohispalacejustouteconomic reforms, including to establish a national bank, curtail the sideTehran.TheCossackBrigadeof Library of Congress/G. Grantham Bain News Service Shahsexpenses,andbegincleaning 1,000, equipped with artillery, surMohammad Ali Mirzi Shah, whom roundedtheMajlisandopenedfire, up the rampant corruption. Above Shuster described as perhaps the most destroying the building, killing or all,itaimedtopreventfurtherloans perverted, cowardly, and vice-sodden fromBritainandRussia,andtooust monster that had disgraced the throne of capturingthenationalists,andinstitutingareignofterrorintheCity.In the Belgian Minister of Post and Persia in many generations. the ten months of fighting that folCustoms,JosephNaus. While relations between the new Shah and the lowed,thenationalistseventuallysucceededingaining Majlisremainedtense,itwasntuntilninemonthslater, controlofthecountrysmajortownsandcities. Tabriz,Iranssecondcity,andhistoricallyacenter withthesigningoftheconventiononAug.31,1907, and its announcement in Tehran on Sept. 4, that the of the nationalist cause, expelled the Shahs troops, onlytobeputunderabrutalsiege.Itwasherethatthe Shah, with Anglo-Russian backing, began to implement in earnest his plan to overthrow the Majlis. On youngAmericanmissionaryteacher,HowardBaskerville,marchingattheheadasmalltroopof150young Sept. 5, Her Majestys Minister in Tehran, Sir Cecil Spring Rice,oneofthechiefarchitectsoftheAngloPersianswhoonlyafewdaysbeforehadbeenhisstuRussianConvention,addressedalettertothePersian dents,andtowhomhehadgivenrudimentarymilitary government, assuring it that both empires would retraining,wasmartyred,inthefirstengagementwiththe specttheintegrityandindependenceofPersia.Subseenemy.Uponhearingofhisdeath,theprovincialgoverquent events proved that the assurances given were norproclaimed,Hehaswrittenhisnameinourhearts meresophistries. andinourhistory. ByDecember,withthefullbackingofBritainand Russia, on the pretext of protecting the lives and Russia,theShahdeployedagainsttheMajlisthe1,800propertyofforeigners,dispatched4,000troopstolift man Cossack Brigade, led by RussianArmy officers, thesiege,andwhileopeningtheroadsandallowingthe andamotleyforcemadeupofhisownservantsanddisentryoffoodandprovisions,thenproceededtooccupy gruntledrabbleofTehran.Toopposetheseforces,the thecity;theydidnotwithdrawuntiltheendofWorld ConstitutionalistsintheMajlisralliedthepoliticalclubs WarI.Intheweeksthatfollowed,thenationalists,wincalled anjumans, organized along guild lines, such as ningoverthepowerfulBakhtiaristriballeaders,leda merchantsandcraftsmen,inallthemajorcities. marchonTehran,forcingtheShahtotakerefugeatthe Despitetensionbetweenthetwo,theShahdidnot Russianlegation. seehimselfstrongenoughtoresistthedemandsofthe Shusterwroteofthesedevelopments,ThusonJuly
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bepaidforbythePersiansthemselves!RussiaandBritainmaintainedopenhostilitytothenewConstitutional Government,preventingitfromraisingloans.Inadesperateattempttoseekaidfromathirdquarter,arequest wasmadetotheGermangovernment,tonoavail.

Persias Appeal Answered by the U.S.

InDecember1910,inanotherattemptto gainthesupportofathirdparty,thePersianMinisterofForeignAffairs,Husayn Kuli Khan, instructed his minister in Washington to request American experts to be employed by the Persian government in the capacity of TreasurerGeneral,toreorganizetheStates finances.Therewasresistancewithin the State Department to this request, sincetheUnitedStateshadnostrategic intereststhere,butmoreimportant,out offearthatthiswouldantagonizeRussia and Great Britain.At the same time, the Persiangovernmentissuedaninternational appealforhelpfromtheoppressiveactionsof theBritishandRussiangovernments.TheJan.11, 1911 edition of the New York Times published this appeal,which,inpart,stated: FouryearsagothePersiannationenteredupona greatmovementtoobtainherliberty.Sheisgoingto provetothepessimistsoftheOccident,whoconsider theOrientandespeciallyPersiaasincapableofregeneration,havingprivatereasonsforthisview,thatPersia is ready to defend at the price of her own blood the idealsofliberty,justiceandequalitywhicharethefundamentalprinciplesonwhichtheOccidentalcivilizationhasgrown. Theclergyandallthesocialclassesofthenation haveprovedtotheentireworldinthecourseofthelast fewyearsthatneitherPersianorIslamismareafraidto opentheirdoorstothebenefitsofcivilization.ThePersians have entered with all the force which animates themonaperiodofevolutionandlibertysoastoobtain thesethings,thelackofwhichhascausedthemtobe outdistancedforsolongatime. In their evolutionary march Persia expected to obtain the protection and co-operation of the entire world,butunfortunatelythishopehasbeenunfulfilled, and,onthecontrary,wehavebeenoppressedsystematicallybytheunfortunateinfluenceoftwoEuropean countries whose ambition and thirst for conquest diEIR August21,2009

Tabriz, Persias second-largest city, was a center of nationalism. Shown is the U.S. consulate there, during the Constitutionalist Revolution. The young American missionary teacher Howard Baskerville (right), was killed in Tabriz in 1909, fighting, along with his former students, on behalf of the Constitutional Revolution.

16,1909,theapparentlylostcauseofconstitutionalisminPersiahadbeensuddenlyrevived, andbyadisplayofcourage,patriotismandskillbythe soldiers of the people, their hopes for a representative governmenthadbeenrestored,almostovernight. Afteranotherfriendlyexchangeofideas,theRussianandBritishministersdecideditwasbettertosend theShahintoexilethanrisktheoverthrowofthemonarchyandtheestablishmentofarepublic.BySeptember, after promising never to return, MohammadAli Shah was givena pension andpackedoffto Odessa, Ukraine,toliveinexile.Hisson,Soltan Ahmad Shah, achildof12,ascendedthethroneunderaregency. OnNov.16,1909,followingthereopeningofthe Majlis,U.S.PresidentWilliamHowardTaftsentaletter ofrecognitiontothenewgovernment:Itenderyour majestycongratulationsontheopeningoftheconstitutional parliament; theAmerican people wish welfare andpeaceforPersiaundertheneworderofthings. Despitethisvictory,theaffairsofthenewgovernment did not prosper. Russian troops still occupied Tabriz and other regions of northern Persia, and the British,inOctober1910,issuedanultimatumdemandingthatthePersiangovernmentallowtheofficersofthe BritishIndianArmytoenterthecountry,topolicethe roads in the British sphere, a project which would amounttooccupationofsouthernpartofthecountry,to
50 History

rectedthemintoaniniquitouspath.Thesetwocountrieshaveundertakenthesadworkofpreventingand stoppingthemarchoftheOrienttowardprogressand civilization.... TheappealwentontodenouncetheunprovokedoccupationofnorthernPersiabyRussiantroops,withthe approval of the Liberal and Constitutional British, who, despite the suave appearance of English politics,havethreatenedtointervenemilitarilyonthepretextofthelawlessnesstheyclaimprevailsinthesouthern part of country. The appeal concluded that the EnglishandRussians,foreseeingtheprojectedreforms andapprehendinganeconomicrevival,createdallsorts ofobstaclestopreventtheextensionofloans.EnglandandRussiatookadvantageofpretextswhichhad nofoundationandmenacedusinordertointimidateus andenslaveourcountry. Itisnotknownwhetherthisappealcontributedto President Tafts decision, but he threw his support behindthePersianrequest,andbyMarch1911,Morgan Shuster and four other young men set out for Persia. Theirmissionwasunofficial,andthoroughlyprivate. TheybecameemployeesofthePersianConstitutional Government.Otherswouldsoonfollow. Who was this 35-year-old financial expert, W. MorganShuster?Hewaspartofthepolicyestablishment,gatheredwithintheinstitutionsoftheAmerican Presidency, the broad layer of military, political, and economicexpertsthatemergedfollowingtheCivilWar andthedevelopmentoftheUnitedStatesastheworlds greatestindustrialpower.Thecompletionoftheworlds firstTranscontinentalRailway,linkingtheAtlanticwith thePacific,madetheUnitedStatesaPacificpower,and therefore, a world power, which could challenge the BritishEmpire. Two factions coalesced, one Anglophile, which soughttocreateacolonialempireontheBritishmodel, andtheotherpatriotic,whichsoughttofighttheBritish bysupportingnation-statesthroughouttheworld.The latterwasbestrepresentedbyGen.ArthurMacArthur (thefatherofGen.DouglasMacArthur),who,asmilitarygovernorofthePhilippines,sawthenecessityto createanindependentandfullysovereignnationthere. Shustersharedthatoutlook. AnativeofWashington,D.C.,Shusterdidnotgain hisexpertiseinaWallStreetbankorlawfirm,butinthe military. Shortly after he graduated from Georgetown University,theSpanish-Americanwarbrokeoutandhe joinedtheArmy,servingasaclerkintheWarDepartAugust21,2009 EIR

ment.With the occupation of Cuba, he joined Major, laterfour-starGeneral,TaskerH.Bliss,toreorganizethe CubanCustoms.Thiswasnotajobforasimpleaccountant,sincetheCustomsHouseisoneofthemostimportantsourcesofrevenueofanationalgovernment. Cuba, like many undeveloped countries, was rife withcorruptionnotonlyonthepartofCubansbut itsrevenueswereoftencommittedtoforeignloans,especially from Britain, France, and other imperial powers.Theloanswerearrangedinsuchawaythatthe revenues went directly from the Customs collection pointtothelocalbranchofaBritishorotherforeign bank,topaytheloansdirectly.Ifthecountryfailedto pay its debts, the Customs House became the prime targetformilitaryinterventionbythecreditorpower. CleaninguptheCustomsHousewaskeytowardingoff militaryinterventions,alongwiththeestablishmentof anefficientgovernmentadministrationthatisintegral totheeconomicdevelopmentanddefenseofthesovereigntyofanynation. In this effort, Shuster soon became Blisss chief deputy.Threeyearslater,witharecommendationfrom Bliss,ShusterwasappointedChiefofCustomsinthe Philippines,whileWilliamHowardTaftservedasgovernorinthefirstcivilgovernmentthere.Stillinhis20s, asChiefofCustoms,heplayedaleadingroleinadministeringandpreparingthePhilippinesforself-government.Hewouldbecomeastrongadvocateforgranting theIslandsindependence. HisfiveassociatesenroutetoPersiaallhadsimilar backgrounds,havingdevelopedtheirfinancialandeconomicexpertiseinCuba,thePhilippines,orotherU.S. territories.Although not an official government mission,itsappointmentwaswidelyreportedintheAmericanpress,withfeaturearticlesintheNew York Times andWashington Post. OnesucharticleonShustersmissiontoPersiawas writtenbytheeditoroftheNew York TimesinNovember 1911, at the height of the crisis: Wrecked and ruinedasshewas,shehadnohopetoherselfandnone intheEuropeannations.EnglandandRussia,likeapair ofwolves,werewaitingforhertofallintotheirpaws. Alreadyatentativepartitionhadbeenarranged.EnglandtakingasphereofinfluenceadjoiningtheAfghan frontier, and Russia a similar sphere adjoining her own.Andthey,withtheminorpowers,werewaitingfor Persiatofallapartsothattheycouldtaketheremnants withoutafight. Enter,here,WilliamMorganShuster,withasingleHistory 51

Persia in 1883. Throughout the century, Persia was a pawn in the Great Game between the Russian Empire to the north, and the British Empire, with its domains in India, to the east.

handedandsoledevotiontoPersia.Notthathehadhad evertakenanyinterestinPersiabefore,butnowPersia washisemployerandfromthatmomenthewasheart andsoulenlistedinhercause.AndRussiaandGreat Britain,totheirconsternation,sawPersiabeingputon amodernbasis,becomingarealnation,turningbefore theireyesintoacountrywhichcouldstandonitsown feet;andknewthatShusterandhisfourhuskyyoung Americanassistantsweredoingit. Pointing to Anglo-Russian opposition to Shuster, theTimeswenton:TherealtroubleisthatShusterhas assertedfromthefirsttheindependenceofPersiaand herrighttobefreefromthedictationofeitherEngland or Russia.... Now he seems to have brought down a warprematurelyonthecountryhewastryingtosave.It isaquestion,however,whetherawarofthekindhehas broughtdownisnotbetterthanthepainlesspartition whichwouldsurelyhavefollowedifPersiahadgone
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oninherheadlongwaytodestruction.6 EnroutetoPersia,ShusterstoppedinConstantinople,wherehemetwithmanyConstitutionalistswhohad beeninexile,includingHasan Taqizadeh,oneofthe founders of the democratic party of Iran, and other member of the nationalist movement, including merchants,governmentofficials,diplomats,andclergymen. TheleadersoftheMajliswithwhomShusterworked, included men such as Arbad Jamish, also known as Jamshid Bahman Jamshidian, and members of the bankingandmerchantclasswhosupportedtheConstitutionalRevolutionpoliticallyandfinancially.Jamshid, aZoroastrian,alongwiththeJahanianmerchant-banker family,hadhopedtoformanationalbank,aprojectsupportedbyShuster,butonlyrealizedthreedecadeslater.
6. CharlesWillisThompson,HowRussiaCameToMakeWaronW. MorganShuster,New York Times,Nov.11,1911.

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The AngloRussian Convention of Aug. 31, 1907 officially divided Persia into British and Russian spheres of influence, with a neutral buffer zone between them. This, they declared to be an expression of their desire to respect the integrity and independence of Persia.
Iranian Historical Photograph Gallery, www.fouman.com

Shusters mission was headquartered in a mansion in TehranmadeavailablebyJamshid. AnotherleaderwastheyoungdeputyKeikhosrow Shahrokh, whom Shuster especially thanked in his book.In1919,KeikhosrowtravelledtotheU.S.,with thehelpofShuster,toaddressCongress,appealingfor U.S.helpinpreventingthesigningoftheAnglo-PersianAccordof1919,whichwouldhaveturnedIraninto Britainsprotectorate.

Shusters Plan
Shusters strategy was clear: to demonstrate how theestablishmentofamodernnation-staterequiresan organizationofthenationalfinancesthatcanmobilize resourcesforthenationseconomicdevelopmentand theprotectionofitssovereignty. The Iranian Cabinet tended to be drawn from the countrysgrandeesandfavoritespatronizedbytheroyal family,manyofwhom,Shusterwrote,hadreachedthe conclusionthatitwasfarsaferandeasiertobecomethe tools,agentsandprotgsoftheRussianGovernment, forinstance,andhaveitspowerfulinfluenceexertedin
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theirfavor,thantosidewiththeirownpeoplewhowere strugglingheroically,butwithallthefaultsofinexperienceandignoranceofthetechniqueofrepresentative governmentweighingheavilyagainsttheirefforts. ItwasintheMajlis,asimperfectasitwas,thatShuster saw the crucial institution that represented the actualprogressivemovementofthepeopleofIran,and thatitwas,bothbylawandreputation,thesymbolof Persian nationalism and liberty.Winning its support wascrucialtopushingthroughhisreformsinagovernmentwhoseCabinetwasmoreloyaltotheoldregime thanthenew.Hewouldhavetodemonstratethathis ownloyaltieslaywiththeIraniannationandnotwith theimperialpowers. Onhisarrival,helearnedofthecontractingofthe 1.25millionloanfromtheImperialBankofPersia, which was worrisome in itself, but worse was a proposedlaw,draftedbythechiefAnglo-Russianagentin thePersiangovernment,Joseph Mornard,theBelgian CustomsMinister.ThislawwouldhavegivenresponsibilityformanaginganddisbursingtheloantoacommitteechairedbyMornardhimself,naturallyensuring
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payment to his Anglo-Russian foreigner among us who takes masters. Shuster was able to not his orders from the foreign blockwhatwouldhavebeenyet legations.Letushelphim. anotherattackonPersia. Shusterwonboththeaweof Shusterwrote:Thusthefirst the Cabinet and, more important,theconfidenceandrespect attemptbyforeignelementstotie oftheMajlis,andonJune13the ourhandsbeforewecouldeven latter passed the legislation getstartedhadfailedandthedeputies of the Medjlis expressed drafted by Shuster, giving him theirdelightthatwehaddiscovthespecialpowersherequiredto eredthesituationtothem. reorganize the governments finances.ThislawmadetheTreaShuster won the trust and surerGeneralresponsibleforthe supportofthepeopleinanother collection and disbursement of way, too. In Iran, it was soon all government revenues, inclear where the loyalty of foreign advisors lay, and who in cludingCustoms.Itincludedthe Tehran would support them. If draftingofanationalbudget,out they were British or Russian, ofwhichallgovernmentexpenditureswouldbepaid,anditinthoseloyaltieswereclear,butin cludedpaymentofforeigndebts. thecaseofthesmallerpowers, All government accounts were suchasBelgium,advisorswould tobeputunderhisauthority. soonlearnwheretheystoodby Thus armed, Shuster began the social invitations that were his contribution to the ongoing extendedassoonasanyonenew Constitutional Revolution. He arrivedonthescene.Shusterdeliberatelyrefusedallinvitations wrote, As soon as the law of forthefirstseveralweeks,soas Members of the first Majlis, or national legislative June13waspassedbytheMedtoconcentrateonpushinganew body, whose term was Oct. 7, 1906-June 23, 1908. jlisIendeavoredtocreatearelawthroughthegovernmentand The Majlis drafted a constitution, and became the spect for law among both forof Constitutionalist ferment in the years the Majlis that would set the hotbeduntil it was crushed by the British and to eignersandPersians.Therewas come, alreadyaverydecentrespectfor frameworkforreorganizingthe Russian empires. money, for power, influence, Statefinances.Theforeignlegations,especiallythoseoftheBritishandRussians,exprestigeandcourage,butabsolutelynoneforthelaws pressedtheirdispleasuretothegovernmentministers as being the embodiment of the rights of the public. who,ataCabinetmeeting,questionedShustersrefusal Laws in Persia, and more especially financial laws, toaccepttheseinvitations. werelightlyregarded. Shusterreplied,AmInotanofficialofthePersian Shusterfoundthecountrysfinancesdividedintwo government;ifIam,shouldInotobservetherulesof parts.OnepartinvolvedtheCustomsBureau,underthe etiquetteofthatlaiddownbythePersianGovernment? directionofMornard,whokepthisownbooks,since The Cabinet quickly agreed, and in Shusters words, theCustomsrevenueswerevirtuallyallearmarkedfor TheyseemedrathertoliketheideaofaforeignerconpayingthedebtstoRussiaandGreatBritain.Mornard sideringhimselftobeagenuinepartoftheirgovernknewwhohismasterswere,andwouldnotcooperate mentinsteadofmerelycondescendingtoaccepttheir withShuster. money. ThesecondpartwastheFinanceMinistryandTreaAswordspreadtothegeneralpublicofthePersian sury,fromwhichtherevenuesformaintainingthenagovernments loyal new employee, Shuster wrote, tional government were disbursed. Shuster found the Duringthislittleby-playthePersianpeoplewerenot administrationtotallydisorganized,withofficialswho entirelyidle.Theyrubbedtheireyesafewtimesand saw their positions as an opportunity for self-enrichthencommencedtohaveanewsensation....Wehavea ment,ratherthanaresponsibilitytothenation.There
54 History EIR August21,2009

was no national budget, and taxes were collected through the ancient method of tax farmingall of whichamountedtoanemptyTreasury. As for theArmy, its troops existed only on paper whilethewarministrywastheroostingplaceforthe mostbrilliantgalaxyofuniformedloafers,masquerading as generals, commissaries, and chiefs of staff, of pettygrafters,amiablecutthroatsandallroundscoundrelswhichithaseverbeenmyfortunetoencounter. Inthefaceofintriguingreactionaryministersand officials,Shusterandhisteamwenttoworkimmediately, introducing a national budget and budgets for eachdepartment.Shusterdraftedabudgetforthewar ministryof2milliontumans,sufficientfor15,000men. Thebudgethadbeen7milliontumans,andthedepartmentcouldnotmuster5,000,men,halfstarved.Most thebudgetwenttograftorpayingforeignadvisors. Hetookthecollectionoftaxes,bothincashandin kind,suchasgrain,outofthehandsofthetaxfarmers andputitdirectlyintothehandsofTreasuryofficials, organizinganindependentTreasurygendarmeforcefor thedirectcollectionofthetaxes;itwouldeventually number 1,500 men, trained and commanded by four Americanmilitaryadvisors.HealsoorganizedaninvestigativeTreasurysecretservice.Shustercreatedthe onlysetofcentralbooksthePersiangovernmenthad everowned. Reorganizingthefinanceshadasitsobjectnotonly enablingthegovernmenttopayitsobligations,butalso togiveitacreditworthinessthatenabledittoissueits owncredits.Anexampleoftheproblemtobesolved was the antiquated and notoriously corrupt national pensionsystem.Mostpensionerswereneverpaidatall, especiallythecommonpeople.Shusterreorganizedthis byeliminatingboguspensions,introducingamodern system, whereby pensioners were issued bonds with 40-yearmaturity,andthebondholderreceivingannual interestthroughacouponsystem.Thisnotonlyassured the payment, but increased the amount of negotiable paperavailabletothesystemfortherequirementsof commerce,which,atthattime,wasdominatedbyBritainsImperialBankofPersia.Thishelpedestablishthe creditworthinessofthegovernmentintheeyesofthe population,allowingfortheflotationofinternalbond issues. Thus,forthefirsttime,thegovernmentpaiditsbills ontime,includingthesalariesofdiplomaticrepresentativeswhohadnotbeenpaidinyears.Forthefirsttime, IranianswouldaccepttheirowngovernmentsTreasury
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notesratherthanthoseissuedbytheImperialBankof Persia. Shusterbegantoimplementthreeotherkeyprojects whichwouldearnhimthehatredoftheBritishandRussians,includingbuildingrailroads,takingovertheCustoms,andfloatingainternationalloantopayoffBritish andRussianloansandfinancesuchprojects. Hismostimportantproject,whichwouldnotgetoff thegroundforanotherthreedecades,wastobuildan Iraniannationalrailwaygrid,centeredonanorth-south trunklinerunningfromJolfa,ontheRussianborder, throughTabriz, Zindjan, Kasvin, Hamadan, Khoramabad,toMohammerahonthePersianGulf.Thiswould traversetherichestregionsofPersiaandexpandtoa totalofeightlinescriss-crossingthecountry,andwould greatly hasten the countrys development. Shuster thoughtitcouldbebuiltinsections,andprivateloans could be authorized, since it would be profitable, if carefullymanaged.HerecommendedtotheMajlisthat itpassalawannouncingitsintentiontobuildtheserail lineswhenthetimewasright. ForBritain,sucharailwaygridwouldbethefulfillmentofthenightmaresofLordCurzonandotherBritishimperialists.ThegridwouldlinktheRussianTransSiberianRailwaytothePersianGulfandthen,theIndia Ocean. Moreover, any rail development would naturally link up with the German-built Berlin-Baghdad line,whichwasperceivedasadirethreattoBritains Indiancolony.BritainitselfhaddreamsbuildingaCapetowntoCalcuttaline,butonlyaftertheOttomanEmpire andPersiafellunderLondonscontrol,followingthe anticipateddestructionofboththeRussianandGerman empires. Persiawasbeingeconomicallyandpoliticallystrangled by the loans held by the Russian governments Discount and Loan Bank, the British Indian government loans, and the privately owned British Imperial BankofPersia. Togetaroundthisobstacle,ShusteropenednegotiationswiththeBritishofficeoftheAmericanbankSeligmanBrothersandCo.Thisbankwasfoundedduring theCivilWar,whenitwasinvolvedinraisingfundsfor theUnion;itlaterbecamethefiscalagentfortheU.S. DepartmentofWarandtheNavy.Shusterhopedtoraise thefundsthroughitsLondonbranch,since,atthattime, allforeignloansbyAmericanbankshadtoreceiveapprovalfromthegovernment. TheloanwouldbeusedtopayoffRussianloans, and provide for public works projects, including a
History 55

census for taxation purposes; surveys of forests and mines,andofpublicdomains;barracksandequipment for Treasury gendarmes; repair and construction of roads;andconstructionofirrigationsystems.TheBritishandRussiansimmediatelymovedtosabotagethis effortbysimplytellingthebankersandinvestorsnotto subscribetotheloan. One of the most important tools to build up the economywastheprotectivetariff,oneofthehallmarks oftheAmericanSystemofpoliticaleconomy.Thetariff wouldraiserevenuesaswellasprotectlocalagriculture andindustry,andShusterhopedtoreformIransCustomsregime,whichwastotallysubservienttoBritish andRussiancreditorsforpaymentofloans.Thetariffs wereinfacttoolow;theywerenotprotectivetariffsby anymeans.RussiantradedominatedtheNorth,while Russiawouldnotallowtransshipmentofgoodsfrom anyothernation,includingIranitself,onitsrailroads. The South was dominated by British trade. Shusters reform was immediately opposed by both the British andRussians,andCustomsMinisterMornardwasmore thanwillingtoaidhismastersintheirintrigues.

Library of Congress

Between the Lion and the Bear

Shusterwrotethathefounditdifficulttoimagine whyanyforeigngovernmentwouldresisthisefforts, giventhefactthattheproposedreorganizationafforded moresafeguardsandguaranteesforthepaymentofforeignloans.Yet,theverydaythelawwaspassed,the RussiaministerinformedthegovernmentthatMornard shouldnotbeputunderShustersauthority,goingsofar astothreatentheseizureoftheCustomshousesinthe North.Withintwoweeks,theRussian,French,German, Italian,andAustro-Hungarianlegationsrainedprotests uponthePersianForeignOffice.Shusterwassoonattacked as a certain Mr. Sinister and the so-called TreasurerGeneral. Undeterred,andwithbackingoftheMajlis,Shuster securedagreementfromthebankstorecognizeonlyhis signature on any checks drawing from a government account.AsforMornard,afterShusterpresentedevidenceofgrossirregularitiesattheCustoms,whichhe saidwaspreparedtomakeavailabletotheMajlis,this Anglo-Russianprotgsurrenderedhisauthorityover theCustomsaccounts. ByJune15,1911,PrimeMinisterandMinisterof WarSipahdar ul-AzamleftTehraninprotestoverthe cuttingofthewarbudget,andheadedforEurope,on theborderwithRussia,fromwherehewouldworkwith
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Britains Lloyd George, as Chancellor of the Exchequer in 1911, gave a speech at Mansion House in London, invoking the Triple Entente against Germany, and implicitly against the United States and Persia as well. This began the drumbeat to World War I.

RussiatobringdownShuster.Thebrotheroftheformer Shah,PrinceSalar ed-Dowleh,wentintoopenrevolt innorthernPersia,inwhatwasclearlyaRussian-backed operation. Shusterwasfullyawareoftheconnectionbetween theAnglo-RussianeffortstocrushIranandthedynamic oftheTripleEntente,writingthatitwasBritainsaim tobuildupwar-spentRussia,therefore,andtomake anententewithherwhichshoulddoforEnglandonthe north of Germany what the understanding with the Frenchhaddoneonthesouth.... Thousands of miles to the west, a small German gunboat,The Panther,droppedanchorattheMoroccan port of Agadir, a move that the British government chose to respond to by threatening war. The British chosetoturnadisputebetweenGermanyandFrance overtheirdivisionofinterestsintoapretexttoinvoke theTripleEntenteagainstGermany. Britain,lookingafteritsowninterestsinthedivisionofotherpeoplesland,movedtosupportFrance against Germany. On July 21, 1911, Lloyd George, ChancelloroftheExchequer,threatenedGermanywith war.InaspeechgiveninMansionHouse,theseatofthe mayorofLondon,themanwhowouldleadBritaininto
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theWorldWar,andamasterofsophistry,Georgedeclaredthatwhilehewouldmakegreatsacrificesfor worldpeace...ifasituationweretobeforceduponus inwhichpeacecouldonlybepreservedbythesurrenderofthegreatandbeneficentpositionBritainhaswon bycenturiesofheroismandachievement,byallowing Britaintobetreatedwhereherinterestswerevitallyaffectedasifshewereofnoaccountinthecabinetofnations,thenIsayemphaticallythatpeaceatthatprice wouldbeahumiliationintolerableforagreatcountry likeourstoendure.Nationalhonorisnopartyquestion. The security of our great international trade is not a party question; the peace of the world is much more likelytobesecuredifallnationsrealizefairlywhatthe conditionsforpeacemustbe. After the speech, theAdmiralty initiated naval deployments,whileIranwouldsoonlearnthebittermeaningofthephrasewhattheconditionsofpeacemustbe. ItshouldbenotedthatwhileGermanyhasbeenconsidered the only target of this threat, Germany is not mentioned in the text, but the United States is. The speech was prefaced with comments expressing the hopeforahappyissueofthenegotiationsthenongoing betweentheUnitedStatesandBritishForeignSecretary Sir Edward Greyforanarbitrationtreatybetweenthe twogovernments,initiatedbyPresidentTaftandaimed atsubmittingdisputestoarbitration,ratherthanwar. On July 10, the British minister in Tehran, Sir George Barclay,hadsentadispatchtoForeignSecretaryGrey,toinformhimoftheactivitiesoftheobnoxiousAmerican: Mr.MorganShusterhasnowbeentwomonthsin Tehran,andhisinfluenceisalreadyaleadingfactorinthe situation.TheMejlis,forthemomentatleast,isentirely athiscommand,andproposalsfromhimhaveonlytobe madetobeacceptedwithpracticalunanimity. Onemustadmirethepluckandenergywithwhich he has at once thrown himself into the struggle for reform,butatthesametimeonecannotbuthavesome misgivingsastotheresultsofhisheadlongprogress. On the only occasion on which I have met Mr. Shusterheemphasizedthepurelyfinancialcharacterof theworkbeforehim,andsaidthathewasnopolitician ...buttheapparentlylight-heartedwayinwhichheembarkedonaconflictwiththeBelgiancustomsAdministration,andfollowedthisupwiththeofferoftheTreasuryGendarmeappointmenttoMajorStokes,inbothof thestepshewasexposinghimselftooppositionfrom Russia,wouldseemtogivehisdisclaimerofthepolitiAugust21,2009 EIR

ciansroleamoreominoussignificance,andpointtoits denotingadisregardofpoliticalconsiderations,which itwouldbewisertotakeintoaccount. ThepoliticalconsiderationswhichSirGeorgeaccusedShusterofignoringweretheAnglo-RussiancondominiumunderwhichPersiassovereigntywasannihilated. The reference to Major Stokes concerns the principalpretextthatRussiausedtoinvoketheAngloRussianentente,inordertooustShuster.TheStokes appointmentgrewoutofShustersneedfortrainedmilitaryofficersforhisgendarmes,andStokes,although anEnglishman,washighlyqualified,knewPersiawell, spokeFarsi,andwaspreparedtoresignhiscommission fromtheBritishIndianArmy.Russiaclaimedthathis appointmentviolatedtheAnglo-Russianagreementof 1907,becauseStokes,asaBritishnational,wouldhave toentertheNorthinordertocarryouthisduties. While the above dispatch was not released to the publicuntilafterShustersousterinDecember1911, theAmericanhadalreadybecomeawareoftheBritish rolebyJuly17,whenhewasshownanotegiventoanotherofficialofthediplomaticcorps,revealingthatthe BritishForeignOfficehaddirectedtheBritishlegation tosidewiththeRussiansonthequestionofMornard andthecontrolofCustomsfunds. WhileSirGeorgewarnedShusterontheStokesappointment,Shuster,whowasquitefamiliarwithtextof theAnglo-RussianConvention,sawnoreasontocompromisetherightsofhisemployer,thePersiangovernment.WritinginreplytoSirGeorge,Shusterdeclared: WhatamItothinkwhenIseethefirstvitalstepwhich Iundertakeinthetaskofbringingorderoutofchaos here obstructed and relentlessly opposed by the very twonationswhohavetimeandagainprofessedtheir sinceredesiretoseetheprogressandprosperityofthe strickencountrywhichIamseekingtoserve.... Inconclusion,permitmetosaythatasthefactofmy tender of this post to Major Stokes is now generally knownhere,anywithdrawalofthatofferbymecouldnot failtobeinterpretedasbeingdictatedbypurelypolitical considerations,whichIcouldbynomeanspermit.7 OnJuly21,theBritishForeignOfficesentinstructions to Tehran totally backing Russias demands, saying,itshouldbepointedouttothePersiangovernmentthattheemploymentofMajorStokesinmilitary serviceinanyactiveoperationsinthenorthofPersia mayinvolvepoliticalconsiderations,andthatHisMaj7. Thompson,op. cit.,footnote6.

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estys government cannot deprecate objections that maybetakentoit.Stokeswouldeventuallybeordered bytheBritishlegationnottoaccepttheappointment.

Civil War
OnJuly18,threedaysbeforeLloydGeorgesMansionHousespeech,Tehranlearnedthatthewarpartyin St.PetersburghadunleashedtheformerShah,MohammadAli,breakingtheAnglo-Russianpromisetoassure thatheremaininpermanentexile.MohammadAlientered Iran through Russia at Gumesh Teppeh on the CaspianSea,withaconsignmentofrifles,ammunition, and artillery transported by the Russian railway on boxes marked mineral water, and a small army of ShahsevensandTucomanstribes.HisbrotherSalared Dowleh,whohadalreadyenteredIranandorganizeda smallarmyofKurds,declaredhissupport. ThisnewscreatednearpanicinTehran;nonetheless, the Majlis acted. A new coalition government was formed,andmartiallawwasdeclared.Withindays,the Cabinet and many Majlis deputies were overtaken by fear,butagroupofConstitutionalistssteppedforwardto takeleadership.AsTreasurerGeneralandanemployee ofthePersiangovernment,Shusterwasbroughtintothe leadershipgroupthathopedtosavetheconstitutional government.At a meeting with theWar Minister, the regent,andEphraim Khan,aTurkish-Armenianchief ofpolice,ShusterrecommendedthattheMajlispassa lawdeclaringtheformerShahandhistwobrotherstobe outlaws,andofferingalargebountytowhoevermight deliverthemup,deadoralive.Shustermetwithleaders ofbothpartiesinanefforttoconvincethemtotakepositiveaction,andbyJuly29,theMajlispassedalawoffering a bounty of 100,000 tumans for the Shah and 25,000foreachbrother;theMajlisalsovotedtooust PrimeMinisterSipahdar,whowasknowntobeintriguingwiththeAnglo-Russian-backedformerShah. Without an army, the government had only 1,800 police and gendarmes in the capital. Shuster wired fundstoBakhtiyariKhan,governorofIsfahan,andwho hadbeenwonovertothenationalist/Constitutionalist cause, for expenses to outfit 2,000 Bakhtiyari tribesmen.AndapensionwasarrangedforMajorHaase,a Germanartilleryinstructor,tohandlethefewMaxim gunsinthepossessionofthenationalists. OnJuly28,thefirstofseveralassassinationplots against Shuster was discovered, and was believed to havebeenlinkedtotheRussianlegation. OnJuly31,theBritishandRussianmissionsissued
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astatementrecognizingthattheShahhadviolatedthe agreementonhisexile,andthattherefore,hispension shouldbeforfeited.But,nowthathewasinPersianterritory, they wrote sanctimoniously: The British and Russiangovernmentscannotintervene.Thereforethe BritishandRussiangovernmentsstatethatintheconflictthathasunfortunatelyariseninPersiatheywillin nowayinterfere.ItwouldbelearnedlaterthattheexShah,asearlyasJune,hadmetinViennawithRussias AmbassadortoSerbia,NicholasHartwig,who,when hewasministerinTehranin1908,hadcoordinatedthe Anglo-RussianoperationtooverthrowtheMajlis. TheBritish-Russianstatement,ofcourse,waspure sophistry.Thatweek,thegovernorofArdebilwasarrestedbytheIraniangovernmentfortreasonousactivity,andtheRussianconsulsent300Russiansoldiersto securehisrelease,afterwhichthegovernorjoinedthe forcesoftheformerShah. On Aug. 7, Shusters Director of Taxation, F. S. Cairns,dispatchedalettertoPresidentTaft: Pursuanttoyourkindrequesttokeepyouinformed ofourprogressinPersia,thefollowingstatementofexperiencesandconditionsmaybeofinterest,especially inviewoftherecentreturnoftheexiledShah,MohammadAli,andthenearapproachofcivilwarwhichnow seemsinevitable,astheresultofforeignintrigues.... The injection of Mr. Shusters vigorous and uprightpersonalityintosuchaputridmass,hascreated more stir and consternation than anything which has occurredinrecentyears,andhastendedtoupsetthevicious plans of certain foreign representatives whose hopesforacompletenationaldisintegrationhavebeen temporarilydisturbed,butnotcheckedbyanymeans. Mr.ShustersreceptionbythePersians,whowantand hopeforbetterthings,wasextremelycordial,andthe confidenceinhisabilitytoplacethecountryonabetter andmoresubstantialbasis,wasfittinglydemonstrated bythealacritywithwhichhewasgivencompletecontrolofthefinances.Hispowersinthatrespectaredictatorial,andhavebeenconfirmedinalawpassedbythe MedjlislastMay.Thenaturalresultofarigorouspolicy to check abuses and secure the proper payment and control of taxes, has developed a colossal opposition fromallthosewhohaveheretoforesappedthevitality ofthenation,inwhichattitudetheyareencouragedby everyforeignLegationexceptourown.Harassedupon allsidesbyahungryhordeofthieveswhofearapermanentcurtailmentoftheircorruptpractices,withadepletedTreasuryandcivilwarstaringhimintheface,
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Mr.Shusterstaskisonewhichmightwelldiscourage anyman,andmakesthefightveryunequal.Hisonly supportistheNationalAssembly(Medjlis),whichup to the present time has approved every measure proposedbyhim,buthowlongconstitutionalgovernment canexistinthiscountry,overshadowedasitisbyaBear onthenorthandaLioninthesouth,isaquestionweare constantlyaskingeachother.... Weareassuredbyotherforeignersthatourlives will not be endangered, but we have almost positive proofs that Mr. Shuster has been secretly threatened with assassination by a Russian ex-consul, named Petroff,wholivesattheRussianLegation.Inmostany othercountrysuchstatementswouldbeliberallydiscounted,butpoliticalassassinationissocommonhere, and practiced so generally in Russia, that the story, whichhasreachedus,cannotbeacceptedatotherthan itsfacevalue.... Afterreviewingthedifficultiesinreorganizingthe taxationsystem,Cairnscontinues:TheCustomsserviceisfairlywellorganizedandmanagedbyBelgians, but not honestly. They collect about four millions of Tomansannually,nearlyallofwhichisconsumedin thepaymentofinterestchargesontheRussianandBritishdebts. ItisonlyrecentlythatMr.Shusterhassecuredthe controlofthisbranchoftheservice,andevennowheis engagedinafightforcedonhimbytheintriguingLegations, to compel him to release his supervision and permittheCollectorofCustomstopersonallypayand beresponsiblefortheinterestchargesandotherobligationssecuredbythecustomscollections. Allthiswillundoubtedlyseemverystrangetoyou Mr.President,butthesituationhereissoextraordinary, thatonemustbeonthegroundtorealizethataseeminglyindependentgovernmentcanbesoimpotent,that orderstoitsofficialsaregivenbyforeignrepresentatives,andstrangestofall,aremanytimesobeyedwithoutquestion. Ihavebeentoldthatthesituationhereiscomparable to that of Egypt thirty odd years ago, but Lord CromerhadaBritisharmy,witheveryimportantoffice filled by men of his own nationality, and the British nationathisback.Ifwecouldhaveevenasmallpartof suchsupport,andcouldeliminateforeignintrigues,we mighthopetoaccomplishreformsintime;asitis,however,myviewsforultimatesuccessareextremelypessimisticandaresharedbyeveryothermemberofthe Commission.Asafairsampleofourdifficulties,Mr.
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Shusterhasrecentlybeenendeavouringtoorganizea forceofGendarmesforserviceinthecollectionoftaxes andisbeingopposedandhinderedbytheRussianLegationinthemostoutrageousmanner.TheRussiansare protesting through diplomatic sources and are determinedtodefeattheproject,byfairmeansorfoul.They recognize the wisdom of the movement, and as their policyistokeepPersiainaconstantturmoilandwithout financial resources or improvements, each of our propositionsforbettermentofconditionswillbevigorouslyandofficiallycombatedbythem. Findingitimpossibletodefeatthegendarmeproposition, they promptly landed the exiled Shah on the NorthcoastofPersia,accompaniedbyRussianarmy officers,andintheirdeterminationtodefeatMr.Shusterandhisplansforimprovements,theyareplunging Persia into civil strife with a certain prospect of success.IfunabletodefeattheConstitutionalforcesinthe field,andagainseatatoolonthePersianthrone,they willatleasthaveaccomplishedoneoftheirobjectsby depletingtheTreasuryandcompellingtheexpenditure ofthelastcentformilitaryoperations.Inthemeantime generalconditionsaredailygrowingworse,travelon theroadsisbecomingmoredangerous,bandsofbrigandsareappearingeverywhereandarevolutionaryexplosionmayoccuranydayhereinthecitywhereRussianinfluenceisverystrong.Tosumupthesituation, Russiaisdeterminedtodefeatanyattempttoimprove conditionsinPersia,andincidentallytoeliminatethe Treasurer General and his assistants, unless they are willingtobecomesubservienttoRussianintrigues. Canweresistsuccessfullyandcarryonourwork ofregenerationwithouteventhemoralsupportofany nation?Canweexpectprogresswhenopposedbyforeign nations, and such a powerfully corrupt element amongthePersiansthemselves?Imustconfessthatthe future looks exceedingly dark.... We shall struggle along,however,untilthingstakeabetterturn,or,until thefinaldissolutionexpectedbyeverybodyexceptthe AmericanMinister,whoistheonlyoptimist,andwhose cheerfulpresenceandencouragingwordsservenota littletobuoyupourdroopingspiritsandspurusonto renewedefforts....8 OnAug.11,atadiplomaticdinerwhereSirGeorge
8. CitedinRoseLouiseGreaves,SomeAspectsoftheAnglo-Russian ConventionandItsWorkinginPersia,1907-14,Bulletin of the School of Oriental and African Studies,UniversityofLondon,Vol.31,No.2 (1968).

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BarclayandRussianMinisterM.Poklewski Koziellwerepresent,thelattertriedtobribe andwarnShustertostaypassivewhiletheexShah moved to take power, after which the Russianswouldassurethathecouldremain withfullpowers.Withouthesitation,Shuster saidthatnomatterwhathappened,hewould neverserveundertheex-Shah. While the Russian and British ministers shareddrinkswithShuster,theformerShahs forceadvancedonTehran.OnAug.20,Prince Salar ed-Dowleh reached Hamadan with 10,000 men, preparing to march on Tehran, wherethenationalistshadnomorethat3,000 men.ButonSept.5,aninferiorgovernment force of Bakhtiyaris, and gendarmes led by EphraimKhanandsupportedbyMajorHaases Maximguns,throughaflankingmaneuver,de- Constitutionalist forces in Tabriz, 1909. featedAshardud Dawla,whowascaptured andexecuted.Havinglosthisbestgeneral,Mohammad troloverPersiaakintothatexercisedoveraminorbyhis AlischancesofmarchingonTehranhadbeendashed. guardian,andchargedthathehadthrowninhislot OnSept.11,AliandhisbrotherShuaus Sultanawere withthePersiannationals.Shustercommentedthathe defeatedandfledwithonlyafewfollowers.OnSept.18, wasunabletounderstandwithwhomtheTimesthought IshouldhavethrowninmylotwhileIwasworkinginthe PrinceSalared-Dowleh,attheheadofagroupofBakhtiyaritribesmen,wasdefeatedasheattemptedtoadvance serviceoftheConstitutionalGovernment. fromHamadantowardsTehran.ByOctober,Russiaand Persian patriots, without Shusters knowledge, Britainsawthetotaldefeatoftheircounterrevolution translatedhislettertotheTimesandpublisheditasa revolutionarypamphletthroughoutIran. Shuster Takes On the British HisMajestywasnotatallpleasedwiththeturnof OnOct.17,ShusterheldinterviewswiththeLondon events.Louis Mallet,AssistantSecretaryofStateatthe TimesandReuters,inwhich,hesaidthatneitherRussia Foreign Office, in a minute to Foreign Secretary Sir nor England was interested in supporting financial EdwardGrey,ragedthatShusterhadcompletelyfailed reforminPersia,towhichtheTimesrepliedininsulting toappreciatethatPersiaisacountryprotectedbyRussia terms on Oct. 19. Shuster wrote a long letter to the andBritainanditisclearthattheonlywaytopreserve editor,detailingAnglo-RussiancollusionagainstPersia, theententebetweenusandRussia,whichisofparamount makingthepointthatifwhattheyhaddoneagainstthe importance,istoget rid of Shuster(emphasisadded).9 Greyfullyagreed,andonOct.26,hesentthefollowPersian government were done to a stronger country, thesewouldbeconsideredactsofwar.Writingthatboth ingdispatchtoBritishAmbassadorSirGeorgeBuchanan powershaveunderminedofhiswork,hedeclaredthere inSt.Petersburg:Persianindependencecannot,Iagree, beallowedtobemarkedbyunfriendlinesseithertoGreat wasadeliberateagreementbetweenanumberofforeign legations, headed by the Russian legation, to BritainortoRussia,anditisobviousthat,inviewofthe defeattheexecutionofhispolicies.Thiscampaignof geographicalsituation,noGovernmentwhichrefusedto threats,naggingandgeneraloppositionwhichevenderespecttheinterestofRussiacouldbetoleratedbythe scendedintovulgarpersonalitiesagainstme,andinto latter at Tehran. This we shall certainly impress upon crude attempts to frighten the Persian government, Shusterwhentheoccasionarises....10 Withindays,RussiantroopsbeganlandinginIranat failedutterly,thoughitdidentailaperiodofdelayand confusionininitiatingcertainfinancialreforms. In response, the Times wrote that Shuster failed to 9. Ibid. 10. Littlefield,op. cit.,footnote7. recognizedthatRussiaandGreatBritainexerciseacon60 History EIR August21,2009

Enzeli(BandareAnzali),andtheBritishlegationinformedthePersiangovernmentthatitwassendingtwo squadronsofIndiantroopstoShiraztoactasconsular guards. Withthesedispatches,theousterofShuster,thedestructionofconstitutionalgovernmentinIran,andits occupationintheNorthbyRussiantroops,andinthe South by British troops were assured. Only a pretext wasneeded,andtwowerefoundveryeasily. ThefirstwastheassignmentofanAnglo-Frenchman named Lecoffre to examine the misappropriation of 1 million tumans in the city of Tabriz, in the Russian sphere.ThiswasdespitethefactthatLecoffrehadalreadybeenemployedbythePersiangovernmentforthe previoustwoyearsandwasbasedinTehran,alsointhe Russian spherea fact that had until now been ignored.ThesecondwasthePersiangovernmentsorderto ShusteronOct.4toconfiscatetheTehranestatesofthe Shahstwobrotherswhoserebellionhadcollapsed,and who were rightfully deemed traitors by the ConstitutionalGovernment.Thesetwoactions,whichwerefully withintherightsofanysovereigngovernment,became thepretextformilitarilybackedultimatums. Using the Lecoffre appointment as a pretext, on Nov.2,theBritishForeignMinistersentinstructionsto SirGeorgeBarclay,theirministerinIran:[The]Russiangovernmentaresuretobeannoyedatthisappointment,anditisnotunlikelythattheywilldefendtheir interestsbyenergeticmeasureswhichmightevengoas far as an occupation of Northern Persia. You should adviseShustermoststronglytodoallinhispowerto conciliatetheRussianLegation,andpointouttheprobable result of continued provocation on his part. He shouldbemadetounderstandclearlythat[the]Russian government have it in their power to employ means which would seriously impede the discharge of his duties, and which it would be impossible for him to withstand.HemustbemadetoseethattheRussiansare sure to take measures for the protection of their own interestsifadministrativepostsintheirsphereofinterestarefilledbyBritishsubjects,andthatHisMajestys governmentcannotdeprecatesuchmeasureasitwould becontrarytothespiritoftheconventionof1907.... WhenBarclaypresentedtheordersofhisgovernment,Shustertoldhimhecouldnotcomply,because, although he was respectful ofAnglo-Russian legitimateinterestinPersia,hecouldnotrecognizetheexistenceinPersiaofforeignspheresofinfluence,athing whichthePersiangovernmenthadofficiallyrefusedto
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do,andhadactuallyforbiddenmetodoonmorethan oneoccasion. OnNov.2,thesamedaythatBarclayhadreceived his instructions, his Russian counterpart, Poklewsvki Koziell,presentedanultimatumtothePersianForeign Office, that the Treasury gendarmes be immediately withdrawnfromtheestates,andthatthosepropertiesbe giventothePersianCossacks.Herefusedtoacceptthe PersianprotestagainstthelandingofthousandsofRussiantroopsonPersiansoil. HavingjustdefeatedtheAnglo-Russian-backedrebellionoftheformerShah,thePersiangovernmentwas not prepared to capitulate to these totally unjust demands.TheCabinetconsultedwithShuster,who,while sayinghecouldnotinterveneintheinternalaffairsof Persia,didremarkthatifPersiaweretomakeastand,it hadastrongcase,becauseRussiawasactingwithout laworjustice.Butinthefollowingdays,Russiantroops continuedtoenterIransNorth,andAnglo-Russianintrigues escalated in Tehran. The Persian Embassy in LondonaskedSirEdwardGreyhisadvice,andhetold themtoaccedetotheRussianultimatum,givingtheimpressionthiswouldendtheaffair. ThethirdpartytotheTripleEntente,France,while keepingalowprofileinTehran,wasnonethelessworkingwithRussiaandGreatBritaintooustShuster.WritingtoParis,theFrenchministerinTehrancomplained thattheAmericaninfluenceisgrowing;ithasbecome thesymbolofnationalisticdemagogy.11

The Empires Demand Shusters Removal

UnknowntoboththeIraniangovernmentandShusterwasadispatchfromSirEdwardGreyonNov.17to Sir George Buchanan, BritishAmbassador to St. Petersburg,informinghimthathehadtoldtheCouncillor oftheRussianEmbassyinLondonthatiftheRussian governmentthoughtnosatisfactorysettlementcouldbe reachedwithoutthedismissalofShuster,hecouldurge noobjection.AsamatteroffacthehasgivenmeendlesstroublebyhisinconvenientappointmentsofBritishsubjectsinspiteofallIcouldsaytohim.12 TheFrenchForeignOfficeexpressedthesameopinion: This inauspicious advisor who has managed to
11. A.M.A.E. Nouvelle Serie. Sous serie: Perse. Vol. 24, Folio 140 (11.7.1911):ChargdAffairesParis.CitedinMariamHabibi,France and the Anglo-Russian Accords: The Discreet Missing Link,Iran,Vol. 41(2003),publishedbytheBritishInstituteofPersianStudies. 12. GreyHelpedOustShuster,New York Times,April14,1912.

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imposehiswillonaweak-willedgovernment...and who pays no attention to the special privileges that Russiaquiterightlyclaims.13 OnNov.24,theIranianForeignMinisterarrivedat theRussianLegationinTehranandwaspresentedwith aformallyapologyfortheultimatum.Butfivedayslater, theRussiansdeliveredasecondultimatum,demanding theimmediatedismissalofShusterandLacoffre.Inaddition, the Russians demanded the payment of an indemnitytocovertheexpensesoftheRussianinvasion oftheircountry!Theydemandedcompliancewithin48 hours,orelse,theysaid,theRussiantroopsalreadyin RashtwilladvanceanditisevidentthatthiswillincreasetheindemnitytobepaidbyPersiatoRussia. WhenaskedinParliamentwhetherthefactthatthe Britishgovernmentsnamewasontheultimatumindicatedhissupportforit,SirEdwardGreysaidthathe fullyagreedwiththeultimatum,andonlyhadreservationsabouttheindemnity,lestitbetoogreattoallow thePersiangovernmenttopayforthesecurityofthe roadsintheBritishsphereinsouthernPersia!HeaccusedShusterofhavingsettheclockbackinPersia. TheonlyconcerntheBritishexpressedtotheirRussianpartnerswasthatRussiantroopsnotoccupyTehran, forfearthatthiswouldoutragetheMuslimpopulation inIndia.TheFrenchhelpedoutandtooktheinitiative toworkoutacompromisebetweenRussianForeign Minister Sergei Sazonov and the Persian minister in Paris,SamadKhan,inameetinginParis.Khanagreed thatthePersiangovernment,nottheMajlis,wouldsee totheeventualousterofShusterinDecember.

The Majlis Rallies

NewsoftheultimatumcausedatumultinthePersiancapital;thegovernmentsplitbetweentheCabinet andtheMajlis,withtheformermoreopentoAngloRussianintriguesandmorewillingtocapitulate,while the Majlis, which, as Shuster wrote, represented the patriotic aspirations and sovereignty of the Persian people,[who]wereinclinedtomeettheirresponsibility facetoface.WhentheCabinetwenttotheMajlisa few hours before the deadline, urging capitulation to theultimatum,onedeputy,aleadingcleric,gotupand said,ItmaybethewillofAllahthatourlibertyandour sovereigntyshallbetakenfromusbyforce,butletus notsignthemawaywithourownhands! AsShusterrecorded,Whentherollcallwasended
13. Op. cit.,footnote12,Vol.24,Folio210(23.11.1911).

every man, priest or lay man, youth or octogenarian, hadcasthisowndieoffate,hadstakedthesafetyof himselfandfamily,andhurledbackintotheteethofthe greatBearfromtheNorththeunanimousanswerofa desperate and down-trodden people who preferred a futureofunknownterrortothevoluntarysacrificeof theirnationaldignityandoftheirrecentlyearnedright to work out their own salvation.Amid tears and applause from the spectators, the crestfallen and frightenedmembersofthecabinetwithdrewwhilethedeputiesdispersedtoponderonthecoursewhichlaydarkly beforetheirpeople. Afewdayslater,theMajlisandtheCabinetmetand votedtorejecttheultimatum,asthousandsofRussian CossacksandartillerypouredintonorthernPersiaand commencedamarchonTehran. Thenationalistforcesbegantomobilize.ClericsannouncedaboycottofRussianandBritishgoods;demonstrationswereheldinfrontofallEuropeanlegations todemandjusticeoftherepresentativesoftheworld powersforapeopleintheextremityofdespair,Shustersaid.IntheSouth,BritishIndiantroopscouldnot acquirefoodbecauseoftheboycott,andthenotesof the Imperial Bank of Persia were declared unclean, causingthepeopletotaketheirnotestothebankand demandPersiancurrency. Thepro-Constitutionalistclergy,includingHajhajji Husayn ibn KhalilandMullahAbdullah al-MazandaranibeganpreachingjihadagainstRussia.Themost importantofthereligiousConstitutionalists,Mohammad Kazim al-Khorasani,themullahofNajaf,Iraq, decidedtoleaveNajafandtraveltoTehrantopreach jihadagainstRussia,butdiedenrouteandwasbelieved tohavebeenpoisonedbyRussianagents. Secretanjumans,Shusterwrote,sprangvigorously into action the moment that their ideal was threatened....Theywerealwayspreparedtotakeuparmsin defenseoftheirprinciples.Thesesecretsocietieswere believedtohavebeenresponsiblefortheassassination ofthereactionaryPrinceAlaudDawla,aswellasan assassination attempt against Mushiru V Saltan, formerpremierunderMohammadAliShah.Theseassassinations induced a panic among public officials andgrandeeswhofeltthathisconsciencewasnotentirelyclearinhisactionstowardsthelandofhisbirth.

International Outcry
ByNovember,thecrisishadgeneratedaninternationaloutcry.Muslimsthroughouttheworld,including
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BritishIndia,sentmessagesofsupport.OnesuchmessagefromthePersianDefenseSocietyofCalcuttaread: Donotsubmittothenewproposals,buttakeadvantage of the impression produced in Manchester and among the Moslems of the world. Even the Indian womenareexcited.ThepressurefromtheNorthisfor arailroadconcession.Havenoconfidenceintheadvice oftheSouth.Increase the relations with America(emphasisadded). TheimpactofthecrushingofconstitutionalgovernmentinamajorMuslimcountryhadtheeffectofbringingmoreMuslimindependenceleaderstoattendIndias CongressPartyconventionin1912,furtherunderminingtheBritishpolicyofkeepingMuslimsandHindus workingagainstoneanother. IntheUnitedStates,thesedevelopmentswerefrontpagenewsformonths,inpart,becausetheTaftAdministrationwastryingtogetSenateapprovalforanarbitrationtreatywithGreatBritain,andtherewasagitation throughouttheUnitedStatesfortheabrogationofthe U.S-RussianTreatyofCommerce,becauseofRussias refusaltogiveAmericanJewsvisastoentertheRussian Empire. Organizations such as the PersianAmerican EducationalSocietyappealedtoPresidentTaft,theNew York TimesofDec.11reported,tousethegoodoffices of the United States Government to prevent war between Russia and Persia. The society also addressed lettersofappealtotheUnitedStatesSenateandHouse ofRepresentativesandtoAndrewCarnegie,askingthe lattershelpasafriendofworldpeace.Congresswas bombardedwithrequeststopassresolutionsinsupport ofShusterandthePersiangovernment. The New York Times, on Dec. 15, reported comments by Dr. David Star Jordan, president of Leland StanfordUniversity,whileonhiswaytoseePresident Taft:IamwithShusterinthismatterandwithPersia you cant make that assertion strong enough.... It is justacaseofRussiantimberthievesinthenorthand BritishoilthievesinthesouthofPersia.Theywishto graspthegreatresourcesofPersia,stillundeveloped. TheywishtheirGovernmentstobackthemupinthis thieving.... ShustersbookcapturesthedynamicthathadovertakenIraninitsstruggleforliberation.Nowhereisthis moredramaticallyexpressedthaninhisdiscussionof theroleofthewomenofPersia: ThePersianwomensince1907hadbecome,almost atabound,themostprogressive,nottosayradical,in theworld.ThatthisstatementupsetstheideasofcentuAugust21,2009 EIR

riesmakesnodifference.Itisthefact.Itisnotmuchto saythatwithoutthepowerfulmoralforceofthosesocalledchattelsoftheOrientallordsofcreation,theillstarredandshort-livedrevolutionarymovement,howeverwellconductedbythePersianmen,wouldhave early palled into a mere disorganized protest. The womendidmuchtokeepthespiritoflibertyalive. ThePersianwomenhavegiventotheworldanotableexampleoftheabilityofunsulliedmindstoassimilaterapidlyandabsolutelynewideas,andwiththe lanofthecrusaderwhohasavision,theyearlysetto worktoaccomplishtheirideals. Overnight,thewomenbecometeachers,newspaper writers, founders of womens clubs, and speakers on politicalsubjects.Shusterwriteshowwomenssecret societies watched over him with jealous but kindly eyesandsupportedhisworkinahundreddifferent ways.Attheheightofdespairthatthegovernmentand Majlishadcapitulated,thePersianwomenintheirzeal forlibertyandtheirardentlovefortheircountry,threw downthelastbarrierswhichdistinguishedtheirsexand gavestrikingevidenceoftheirpatrioticcourage. Hetellshowagroupofthesewoman,attiredinlong robesandveiled,withpistolsinthefoldsoftheirrobes, demandedandreceivedaninterviewwiththepresident oftheMajlis.Theydemandedthatthedeputyuphold thenationslibertyorpreparetodieattheirhands,after whichtheywouldcommitsuicide.

A Late-Night Conference
AfterthefinaldecisionbytheMajlisnottocapitulate,itsleadersconsultedwithShuster,whodescribes themeetinginhisbook:Lateonthenightthatthedecisionwastakenbytheleadersofthefourpoliticalparties to resist the Russian advance, I was visited by a committee of safety who sought my advice as to the bestmeansofcarryingouttheirpurpose.Irecallvery welltheunrealityoftheinterview.Adozenmenofdifferentwalksinlife,thechosenleadersofastrangeand whollyalienpeople,consultingonewhomtheyconsidered an infidel as to whether they should take a step obviouslyheroicanddramatic,yetwhichwouldspell dangeranddeathforthousandsoftheirpeopleandincrediblephysicaldisasterintheend. We spent three hours in conference, and they finally compelled me to express the reluctant opinion thatifasinglehostilemoveweremadeagainsttheRussiantroopsnorthofTehran,the50,000Cossackswho wouldbepouredintoPersiawhenthesnowsmeltedthe
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followingspringwouldcrushoutthelastsparkofPersianlibertyandleave,perhaps,notevenwidowsand orphanstomournatsoldiersgraves. Itwasstrange,sadtalk.Probablytheyhadnoright toplacetheresponsibilityforsuchadecisiononaforeigner,butIamgladtorecallthatIpointedouttothem theunavoidabledistresswhichwouldfollowanyaggressiveactionontheirpart.Whentheyfiledout,having yieldedtotheideaofonlypassiveoppositiontoRussiandemands,anotherhumblechapterhadbeenwritten amongmanywhichmeanlittletotheworldatlarge,yet whicharepotentwithconsequencesforthosetowhom thedramaisveryreal. Shusterofferedtoresignifthatwasthewillofthe PersiangovernmentandMajlis,sincehisremovalwas atthecenteroftheAnglo-Russianultimatum.Butthe Majlisrefusedhisoffer,andsaidthatifhedidresign,it wouldbeabreachofhiscontract!Andthatwouldmean the end of all hope for constitutional government in Iran. The popular support for Shuster was such that Abolqasem Ferdowsi,whowouldbecomeIransnationalpoet,composedapoem14tomobilizesupportfor preventinghisouster: Disgracedisthehousewheretheguestleaves undined Donotlethimleave,sacrificeyourlife. IfShusterleaves,Iranwillbedestroyed. Oyoungpatriots,letnotIrandie! Tothedeadyouarethesoul! Toaworldyouarethesoul! Youareatreasuregold! WouldtoGodthatyoustay! WouldtoGodthatyoustay!

Coup dtat
OnDec.24,theCabinetexecutedacoupagainstthe Majlis,bydeployinggendarmesandBakhtiaritribesmentoattackandcleartheMajlis;theylockeditupand orderedthedeputiesnottoreturn,underthreatofdeath. AsShusterwrote,Russiangoldboughtthesamemilitary leaders, including Ephraim Khan, who, only a weekbefore,hadfoughtonthesideofthenationalists, toseekasordidendingtoagallantstruggleforliberty andenlightenment....Morethanpoliticalcatastrophe,
14. SorourSoroudi,PoetandRevolution:TheImpactofIransConstitutionalRevolutionontheSocialandLiteraryOutlookofthePoetsofthe Time,PartII,Iran Studies,Vol.12,No.3/4(Summer-Autumn,1979).

itwasasacrilege,aprofanation,aheinouscrime. ThedeputiesagaincametoconsultShusterwith tears,withbrokenvoices,withmurderintheirhearts. They asked whether they should assassinate their treacherousministersorkillthemselves.Isaidtodo neitherfor it wouldonly colorthe pretensions of the RussianandBritishthatthePersiansareincapableof maintainingorder. DaysbeforethecoupofDec.24,theCabinetsenta letterrelievingShusterofhisdutieswhichwasillegal,sinceitwasnotcertifiedbytheMajlis.Butafter thecoup,withaRussianarmy89milesfromTehran, and with Russian-backed Bakhtiaris and Cossacks in Tehran, he understood that nothing good could come outofthecontinuedpresenceoftheAmericanmission inPersia.TheRussiansandBritishdemandedthatthe notoriousMornardtakehisplace,andnooneelse.Refusingtogivesuchanorder,Shusterturnedhisoffice overtohisdeputy,F.S.Cairns,onJan.7,1912.That sameday,arepresentativeoftheministerscamewith ordersthatMornardtakeover. ShusterleftTehranonJan.11,andtherestofhis teamsoonfollowed. WhenthecorruptBelgiumMornardwasnamedhis replacement,theFrenchministerinTehran,Raymond Lecomte, displaying the cynicism of an imperialist, commentedthatMornardisfarmoreexperiencedand morefamiliarwiththePersianmores;thisenableshim tomakeallowancefortheamour propreandothersuch customsofthecountry,thatscandalizedMr.Shusters puritanethics.15 The Russians, with British backing, launched a reignofterrorthroughouttheirsphere,as4,000Russiansoldierswithartilleryandmachinegunsmassacred 1,000 fidais (self-sacrificing warriors) who had taken refugeinthecitysoldfortressinTabriz.TheRussians publicly hung the citys leading clerics and went on killinganysuspectedConstitutionalists,whomtheRussianForeignMinistrycalledrevolutionarydregs.In theirsphere,theBritishdeployedIndiantroops. Shuster saw the tragedy as a direct result of the TripleEntente.ThetrapwhichclosedaroundPersia, he wrote, had been set by the hands or by the fate whichbroughtaboutanunexpectedmoveontheEuropeanchess-boardduringthesummeroftheyear1911, andtheBearspawhadbeenskillfulenoughtospring thetrapbeforetheopportunitywaslost.
15. Op. cit.,footnote12,Vol.25,folio111.

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After Shuster left Iran in January 1912, he went on a speaking tour of the United States, exposing the imperialist machinations that had toppled Irans Constitutionalist government. The people had supported the Majlis, he said, because they saw it as the only institution that represented their liberties, their rights, their nationality, and their future as an independent state.

Shuster Gets the Truth Out

ShusterleftIran,butcontinuedtoworkforthebenefit of its struggle. On his return trip, he stopped in London,wherehespokebeforetheBritishPersiaSociety,whichopposedtheBritishgovernment.Farmore dramaticwashisspeakingtourofmajorcitiesofthe UnitedStates,includingNewYork,Philadelphia,and Washington,whereheaddressedforeignpolicyorganizations,businessgroups,andchurchorganizations. InPhiladelphia,hewasscheduledtospeakbeforethat citysforeignaffairssociety,inahallwithacapacityof 1,000butnofewerthan5,000peopleshowedup,requiringthedeploymentofpolicetomaintainorder. Speakingbeforeaudienceswhowouldstandupand cheerhimatthecloseofhistalk,hewouldexposethe roleoftheBritish,Russian,andFrenchalliesincrushingofIransConstitutionalRevolution.Asforthatrevolutionanditsstruggleforrepresentativegovernment, hehadnothingbutpraise.Shuster,intheconclusionof his memoir, wrote: no parliament can be rightly termedincompetentwhenithasthesupportofanentire people, when it recognizes its own limitations, and whenitsmembersarewillingtoundergogreatsacrificesfortheirnationsdignityandsovereignrights. TheMedjliswastheonlypermanentcheckinthe governmental fabric on the reactionary tendencies of numbersofthegrandeesandcabinetofficials,aswell as on corruption among many Persian officials of all
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ranks. So long as the Medjlis existed it was felt that there was a body to which the people could appeal againstreaction,grosspeculationsandbetrayaloftheir personalandpoliticalrights.TheMedjlisstoodforan honest and progressive administration of Persias affairs.Onthedaythatthisbodywasdestroyedwiththe connivance of the foreign powers, the last hope of honest or representative government in Persia disappeared.ThePersianpeoplerefusedtoacquiesceinthe coupdtatwhichsnuffedouttheMedjlis,becausethey recognizedthatwithitwenttheirliberties,theirrights, their nationality, and their future as an independent state. ThatthePersianswereunskillfulinthepractical politics and the technique of representative constitutionalgovernmentnoonecoulddeny;butthattheyhad fullrighttodevelopalongtheparticularlinesoftheir customs, character, temperament and tendencies, is equallyobvious.Fiveyearsisnothinginthelifeofa nation. It is not even long as a period for individual reform, yet, after a bare five years of effort, during whichthePersianpeople,withalltheirdifficultiesand harassedbytheso-calledfriendlypowers,succeeded in thwarting a despots well-planned effort to wrest fromthemtheirhard-earnedliberties,theworldistold bytwoEuropeannationsthatthesemenareunfit,degenerateandincapableofproducingastableandorderly form of government.With a knowledge of the facts of Persias downfall, the scales drop from the eyesofthemostcredulous,anditisclearthatshewas the helpless victim of the wretched game of cards whichafewEuropeanpowers,withthewillofcenturiesofpractice,stillplaywithweakernationsasthe stake,andthelives,honorandprogressofwholeraces aretheforfeit. ThecrushingoftheConstitutionalistswasaprelude toamuchgreaterconflagration,asEuropemarchedtowardsworldwar,inwhichIranbecameabattleground for three armies. By 1914, a Turkish-German army marchedfromtheEast,asRussiapouredmoretroops fromtheNorth,andBritainfromtheSouth.Although Irantooknopartinit,underthecatastrophicconditions ofwar,itlostfullyathirdofitspopulationtofamine anddisease. AlthoughthepoetsfearofthedestructionofIran wasalmostfulfilled,Iranhad,bythenextdecade,asthe U.S. minister said, thrown off her chains and arisen withrenewedvigor.Thateffortwasalsoaidedbythe UnitedStates,whichwillbeatopicforafuturearticle.
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