2.5.5

Relations & Business with Iran

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The British Exploitation of Iran

Iran was not officially part of the British Empire. However, Britain and its private companies had a huge influence on Iranian (Persian) society.

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Baron de Reuter

  • In 1872, Baron de Reuter privately bought the rights to Iran's banks, currency, transportation infrastructure, and communication industries (including the telegraph system).
  • This was an unprecedented deal completed by a British businessman, rather than the British government.
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The Iranian sale of their industries

  • The Shah was the monarch who ruled Iran.
  • In 1891, the Shah sold Iran's tobacco industry to British businessmen for £15,000. The British company, Imperial Tobacco now owned all shops selling tobacco in Iran.
  • In 1901, the Shah sold the rights to all Iranian oil to a British business, the Anglo Iranian Oil Company. This lease would last for 60 years.
    • There was uproar and an Iranian Parliament called the Majlis was created as a result.

Jump to other topics

1High Water Mark of the British Empire, 1857-1914

2Imperial Consolidation & Liberal Rule, 1890-1914

3Imperialism Challenged, 1914-1967

4The Wind of Change, 1947-1967

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