Quote:
Originally Posted by hermperez
it would be funny if Cuba nationalized the oil wells after the russians did all the work setting them up. The temptation will be strong..
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I think Russia and Cuba will negotiate fair contracts for the services Russia will render. The article states Cuba plans to retain Russian services for 25 years, and if they are not happy with Russian work, will probably sign other agreements with the Chinese.
The wave of oil industry nationalizations in the past was frequently caused by one-sided agreements that became resented more and more as the weaker country became stronger.
In Iran, the very ill Shah Mozzafar al-Din Shah Qajar of Persia, gave an oil concession to a London based company that ExxonMobil would kill for these days: exclusive oil rights for 60 years over a vast area of Persia, and a payment to Persia of just 16% of profits.
Although this was a vast treasure chest for the Anglo-Persian Oil Company (and which, under negotiations with Winston Churchill in 1913 became mainly owned by the British Government, as a strategic asset for the British Crown), the people who actually lived in Persia were not as happy to see 84% of the profits from their oil go to another country, because of a previous non-constitutional government signing an agreement under duress. I'm sure Americans would be upset if 84% of their coal was shipped to Germany for free, because of an agreement President Lincoln signed during the Civil War.
The Iranian Parliament voted to nationalize the Anglo-Iranian Oil Company in 1951,and shortly thereafter elected a widely respected statesman and champion of nationalization, Mohammed Mossadegh, Prime Minister:
http://en.wikipedia.org/wiki/Anglo-Persian_Oil_Compan
Britain was unable to subvert Mossadegh as its embassy and officials had been evicted from Iran in October 1952, but successfully appealed in the U.S. to anti-communist sentiments, depicting both Mossadegh and Iran as unstable and likely to fall to communism in their weakened state. If Iran fell, the "enormous assets" of "Iranian oil production and reserves" would fall into Communist control, as would "in short order the other areas of the Middle East". In August the American CIA with the help of bribes to politicians, soldiers, mobs, and newspapers, and contacts/information from the British embassy and secret service, organized a coup. The shah issued an edict removing Mosaddeq from power and General Fazlollah Zahedi, lead tanks to Mosaddeq's residence overthrowing him from office.
With the new pro-Western Prime Minister, Fazlollah Zahedi, Iranian oil began flowing again and the Anglo-Iranian Oil Company, which later changed its name to British Petroleum, tried to return to its old position. However "public opinion was so opposed that the new government could not permit it." Instead an international consortium under the nationalized name (National Iranian Oil Company) was created, the Anglo-Iranian Oil Company being just one member and holding 40% of the shares. The consortium agreed to share profits on a 50-50 basis with Iran, "but not to open its books to Iranian auditors or to allow Iranians onto its board of directors."
Yup, that's 50% of the profits right there, take my word for it
Little known facts:
The grandson of Teddy Roosevelt, Kermit, was the senior CIA officer in charge of Operation Ajax, which was also the CIA's very first overthrow of a foreign government.
After the coup had a minor faltering, the brave Shah fled the country to Italy, fearing he would be killed by his own people. After the CIA finished the coup, Major General Norman Schwarzkopf, Sr. (father of the commander of Operation Desert Shield/Storm) was dispatched to Italy to persuade the Shah, Mohammad Reza Pahlavi, to return to Iran and seize power. He also trained the internal security forces needed to keep the Shah alive, which later became known as the hated, and feared, SAVAK.
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