The CIA, Intelligence Failures, and the 1953 Iranian Coup (Operation Ajax)

The Establishment and Foundational Charter of the CIA

• Original Creation: President Truman created the Central Intelligence Agency (CIA) in $1947$ by signing the National Security Act into law.

• Primary Mandate: The core goal of the CIA is international spying. This is distinct from internal spying, which is the responsibility of the FBI.

• Charter Restrictions and Violations:

  • By charter, the CIA is strictly prohibited from using its resources to spy on American citizens or individuals living within the United States.

  • Historical Contravention: During the Johnson and Nixon presidencies, the CIA violated its charter by spying on civil rights leaders, specifically Martin Luther King and Malcolm X. This became highly controversial as it deviated from the organization's legal purpose.

• Defined Functions: The CIA is tasked to:

  • "Procure intelligence both by overt and covert methods."

  • Provide intelligence guidance.

  • Determine national intelligence objectives.

  • Correlate intelligence material collected by all government agencies.Failure of Correlation: Despite its mandate to correlate information across agencies, the CIA has historically failed to achieve this level of integration.

Operational Structure and Logistics

• Methods of Operation:     * Overt Actions: Activities the CIA takes credit for globally, making their involvement public.     * Covert Actions: Background activities where the CIA "pulls the strings" without public knowledge of their responsibility.

• The Problem of Agency Siloing:     * The United States possesses multiple spy agencies, including the CIA, the FBI, and military intelligence (Army spies).     * These agencies are historically very secretive and rarely communicate with one another, leading to significant logistics and intelligence problems.

• Intelligence Gaps and the Birth of Homeland Security:     * $9/11$ Analysis: After the attacks on September $11$, it was discovered that the CIA, FBI, and military all held disparate pieces of information suggesting an attack was imminent, but they did not share this data.     * Department of Homeland Security: This department was created specifically after $9/11$ because the government recognized it had intelligence but lacked the structure to organize it or force agencies to communicate efficiently.

• Financial Autonomy and Oversight:     * The "No Budget" Status: A unique part of the CIA charter is that it effectively has no set budget and an unlimited amount of money to spend to protect the United States.     * Reporting Exemption: The CIA does not have to report its spending or provide receipts to Congress. The rationale is that if they were held accountable for receipts, secrecy would be compromised (e.g., exposing payments for hotels for spies in Turkey or plants within Russia).     * Growth Statistics ($1953$): By $1953$, the organization had grown to approximately $6,000$ active members with an estimated expenditure of about $\$82,000,000$.

Operation Ajax: The Intervention in Iran ($1953$)

• Significance: This was the first operation ever conducted by the CIA, serving as a test of the agency's ability to influence the international community.

• Pre-Coup Context:     * The Shah (King): Iran was led by the Shah, who was described as young, rich, and good-looking. He held lavish parties and maintained power through oil wealth.     * Oil Economics: Oil was Iran's primary resource. The Shah sold extraction rights to foreign entities, such as the British Petroleum Oil Company (UK) and Shell.     * Financial Disparity: The Shah enriched himself—receiving paychecks such as $\$5,000,000$—while the common people of Iran saw no benefit from the oil industry, leading to internal economic stagnation.

• The Rise of Mohammed Mosaddeq:     * In $1951$, at $70$ years old, Mosaddeq was elected Prime Minister.     * Public Persona: He was known for theatricality, giving passionate speeches in his bathrobe on balconies, crying, and fainting in public to gather support.     * Nationalization: Mosaddeq argued that Iranian oil was being stolen and announced he would nationalize the oil fields. This involved the government taking control of private property previously held by Western companies.     * Western Perception: The United States and its allies viewed nationalization as a socialist or communist act, which they found unacceptable.

• Economic Collapse and Social Ills:     * In response to nationalization, Western nations boycotted Iranian oil, causing the Iranian economy to tank.     * Consequences: Widespread unemployment, homelessness, and starvation ensued. This desperation led to fears that the populace would turn to communism or crime (including theft and substance abuse).     * Geopolitics: Because the Soviet Union was located just north of Iran, President Eisenhower feared a Soviet invasion or a local communist takeover.

Execution and Outcomes of Operation Ajax

• Key Personnel: CIA agent Kermit "Kim" Roosevelt, the grandson of Sidney Roosevelt, was sent to Iran to execute the plan.

• The Mission: Roosevelt's goal was to convince the Shah to accept U.S. help to depose Mosaddeq and regain control, in exchange for Western access to oil and U.S. military protection.

• Operational Chaos:     * The Shah had gone into hiding out of fear of Mosaddeq. Roosevelt, a white American, walked the streets asking locals for the Shah's location.     * Mosaddeq discovered the CIA presence and called for the public to hunt down the Americans, leading to street riots and armed conflict.

• The Coup Mechanism: CIA operatives distributed vast sums of American money to desperate citizens, encouraging them to fight Mosaddeq. They passed out guns and hired approximately $200$ people to riot and spread pro-Shah propaganda.

• The Climax: Tanks moved into the streets toward Mosaddeq’s house. After several hours of fighting and the deaths of approximately $400$ people, Mosaddeq was forced to surrender.

• Long-Term Results:     * The Shah's power was restored, and the U.S. military provided him with weapons and reinforcements.     * Oil fields were reopened to British Petroleum and Shell.     * Mosaddeq was placed under house arrest for the remainder of his life.     * Public Sentiment: The Shah was viewed by many as a sell-out who relied on the U.S. military to enforce his power, planting the seeds of hatred toward the United States in the Middle East.

• Religious and Social Shifts:     * The Shah sought to "Westernize" Iran. This included suppressing the Muslim population and promoting Christianity.     * Historically, under the Shah's influence in the $1950s$, Iranians were classified as "white" on the U.S. Census.

• The $1979$ Revolution: After the Shah left for the U.S. for cancer treatment and eventually died, the Ayatollah Khomeini (the religious leader of the Muslim people) overthrew the weakened government. This established an anti-U.S. regime, leading to a state of semi-perpetual conflict between the U.S. and Iran.

Questions & Discussion

• Student Question: "Did the Shah get overthrown around that point or not yet?"

• Response: Not yet. The lecture explains that the overthrow happens much later (in $1979$) after Mosaddeq's initial arrest and the Shah's subsequent reign and illness.

• Class Logistics:     * The AP exam is approaching.     * Wednesday is the final day for the retake assessment of chosen units.     * All lectures and "buzzwords" are posted online for self-study.     * This Friday morning, breakfast (bagels and other foods) will be provided before the exam. Students should arrive early at the gym.