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A general amnesty was issued two days after Mohammad Reza Shah's accession to the throne on 19 September 1941. All political personalities who had suffered disgrace during his father's reign were rehabilitated, and the forced unveiling policy inaugurated by his father in 1935 was overturned. Despite the young Shah's enlightened decisions, the British Minister in Tehran reported to London that "the young Shah received a fairly spontaneous welcome on his first public experience, possibly rather to relief at the disappearance of his father than to public affection for himself."

Oil nationalization and the 1953 coup

Despite the high-level cois claim, asserting that he had been the target of various assassination attempts by Soviet agents for many years.

Later years

Foreign relations

The Shah supported the Yemeni royalists against republican forces in the Yemen Civil War (1962–70) and assisted the sultan of Oman in putting down a rebellion in Dhofar (1971). Concerning the fate of Bahrain (which Britain had controlled since the 19th century, but which Iran claimed as its own territory) and three small Persian Gulf islands, the Shah negotiated an agreement with the British, which, by means of a public consensus, ultimately led to the independence of Bahrain (against the wishes of Iranian nationalists). In return, Iran took full control of Greater and Lesser Tunbs and Abu Musa in the Strait of Hormuz, three strategically sensitive islands which were claimed by the United Arab Emirates.

During this period, the Shah maintained cordial relations with the Persian Gulf states and established close diplomatic ties with Saudi Arabia. Relations with Iraq, however, were often difficult due to political instability in the latter country. The Shah was distrustful of both the Socialist government of Abd al-Karim Qasim and the Arab nationalist Baath party. In April 1969, the Shah abrogated the 1937 Iranian-Iraqi treaty over control of the Shatt al-Arab, and as such, Iran ceased paying tolls to Iraq when its ships used the Shatt al-Arab. The Shah justified his move by arguing that almost all river borders all over the world ran along the thalweg (deep channel mark), and by claiming that because most of the ships that used the Shatt al-Arab were Iranian, the 1937 treaty was unfair to Iran. Iraq threatened war over the Iranian move, but when on 24 April 1969 an Iranian tanker escorted by Iranian warships sailed down the Shatt al-Arab, Iraq being the militarily weaker state did nothing. The Iranian abrogation of the 1937 treaty marked the beginning of a period of acute Iraqi-Iranian tension that was to last until the Algiers Accords of 1975. He financed Kurdish separatist rebels, and to cover his tracks, armed them with Soviet weapons which Israel had seized from Soviet-backed Arab regimes, and then handed over to Iran at the Shah's behest. The initial operation was a disaster, but the Shah continued attempts to support the rebels and weaken Iraq. Then in 1975, the countries signed the Algiers Accord, which granted Iraq equal navigation rights in the Shatt al-Arab river, while the Shah agreed to end his support for Iraqi Kurdish rebels.

The Shah also maintained close relations with King Hussein of Jordan, Anwar Sadat of Egypt, and King Hassan II of Morocco.

On July 1964, Shah Pahlavi, Turkish President Cemal Gürsel and Pakistani President Ayub Khan announced in Istanbul the establishment of the Regional Cooperation for Development (RCD) organization to promote joint transportation and economic projects. It also envisioned Afghanistan's joining some time in the future.

The Shah maintained close relations with Pakistan also. During the Second Indian-Pakistani war of 1965 between Pakistan and India, Iran under the Shah, provided free fuel to the Pakistani planes, which landed on Iranian soil, refueled and then took flight.

The Shah of Iran was the first regional leader to recognize the State of Israel as a de facto state, although when interviewed on CBS 60 Minutes by reporter Mike Wallace, he criticized American Jews for their presumed control over US media and finance.

Modernization and Evolution of Government

With Iran's great oil wealth, Mohammad Reza Shah became the pre-eminent leader of the Middle East, and self-styled "Guardian" of the Persian Gulf. In 1961, he defended his style of rule, saying "when Iranians learn to behave like Swedes, I will behave like the King of Sweden."

During the last years of his government, the Shah's government became more centralized. In the words of a US Embassy dispatch, "The Shah's picture is everywhere. The beginning of all film showings in public theaters presents the Shah in various regal poses accompanied by the strains of the National anthem ... The monarch also actively extends his influence to all phases of social affairs ... there is hardly any activity or vocation which the Shah or members of his family or his closest friends do not have a direct or at least a symbolic involvement. In the past, he had claimed to take a two party-system seriously and declared "If I were a dictator rather than a constitutional monarch, then I might be tempted to sponsor a single dominant party such as Hitler organized".

By 1975, he abolished the multi-party system of government in favor of a one-party state under the Rastakhiz (Resurrection) Party. The Shah's own words on its justification was; "We must straighten out Iranians' ranks. To do so, we divide them into two categories: those who believe in Monarchy, the constitution and the Six Bahman Revolution and those who don't ... A person who does not enter the new political party and does not believe in the three cardinal principles will have only two choices. He is either an individual who belongs to an illegal organization, or is related to the outlawed Tudeh Party, or in other words a traitor. Such an individual belongs to an Iranian prison, or if he desires he can leave the country tomorrow, without even paying exit fees; he can go anywhere he likes, because he is not Iranian, he has no nation, and his activities are illegal and punishable according to the law." In addition, the Shah had decreed that all Iranian citizens and the few remaining political parties become part of Rastakhiz.

Achievements

The Shah made major changes to curb the power of certain ancient elite factions by expropriating large and medium-sized estates for the benefit of more than four million small farmers. In the White Revolution, he took a number of major modernization measures, including extending suffrage to women, in accordance to the Islamic Law, the participation of workers in factories through shares and other measures, the improvement of the educational system through new elementary schools and literacy courses set up in remote villages by the Imperial Iranian Armed Forces. The latter step was called "Sepāh e Dānesh", "Army of Knowledge". As a part of the White Revolution, the Armed Forces were engaged in infrastructural and other educational projects throughout the country ("Sepāh e Tarvij va Âbādāni") as well as in health education and promotion ("Sepāh e Behdāsht"). Moreover, he instituted exams for Islamic theologians to become established clerics. As a further step, in the seventies the governmental program of a free of charge nourishment for children at school ("Taghzieh e Rāigān") was implemented. Under the Shah's reign, the national Iranian income showed an unprecedented rise. In the field of diplomacy, Iran realized and maintained friendly relations with Western and East European countries as well as the state of Israel and China and became, especially through the close friendship with the United States, more and more a hegemonial power in the Persian Gulf region and the Middle East. The suppression of the communist guerilla movement in the region of Dhofar in Oman with the help of the Iranian army after a formal request by Sultan Qaboos was widely regarded in this context. As to infrastructural and technological progress, the Shah continued and developed further the policies introduced by his father. As part of his programs, projects in several technologies, such as steel, telecommunications, petrochemical facilities, power plants, dams and the automobile industry may be named. In terms of cultural activities, international cooperations were encouraged and organized, such as the Shiraz Arts Festival. Many Iranian students were sent to and supported in foreign, especially Western countries and the Indian subcontinent. The Aryamehr University of Technology was established as a major new academic institution.

As part of his various financial support programs in the fields of culture and arts, the Shah, along with King Hussein of Jordan donated an amount to the Chinese Muslim Association for the construction of the Taipei Grand Mosque.

Criticism of reign and causes of his overthrow

At the Federation of American Scientists, John Pike writes:

In 1978 the deepening opposition to the Shah erupted in widespread demonstrations and rioting. Recognizing that even this level of violence had failed to crush the rebellion, the Shah abdicated the Peacock Throne and departed Iran on 16 January 1979. Despite decades of pervasive surveillance by SAVAK, working closely with CIA, the extent of public opposition to the Shah, and his sudden departure, came as a considerable surprise to the US intelligence community and national leadership. As late as 28 September 1978 the US Defense Intelligence Agency reported that the Shah "is expected to remain actively in power over the next ten years."

Explanations for why the Shah was overthrown include that he was a dictator put in place by a non-Muslim Western power, the United States, whose foreign culture was seen as influencing that of Iran. Additional contributing factors included reports of oppression, brutality, corruption, and extravagance. Basic functional failures of the regime have also been blamed — economic bottlenecks, shortages and inflation; the regime's over-ambitious economic program; the failure of its security forces to deal with protest and demonstration; the overly centralized royal power structure.

International policies pursued by the Shah of Iran in order to increase national income by remarkable increases of the price of oil through his leading role in the Organization of Oil Producing Countries OPEC have been stressed as a major cause for a shift of Western interests and priorities and for an actual reduction of their support for him reflected in a critical position of Western politicians and media, especially of the adiministration of US President Jimmy Carter, regarding the question of human rights in Iran, and in strengthened economic ties between the United States of America and Saudi Arabia in the 1970s.

In October 1971, the Shah celebrated the twenty-five-hundredth anniversary of the Iranian monarchy. The New York Times reported that $100 million was spent. Next to the ancient ruins of Persepolis, the Shah gave orders to build a tent city covering 160 acres (0.65 km), studded with three huge royal tents and fifty-nine lesser ones arranged in a star-shaped design. French chefs from Maxim's of Paris prepared breast of peacock for royalty and dignitaries around the world, the buildings were decorated by Maison Jansen (the same firm that helped Jacqueline Kennedy redecorate the White House), the guests ate off Limoges porcelain china and drank from Baccarat crystal glasses. This became a major scandal as the contrast between the dazzling elegance of celebration and the misery of the nearby villages was so dramatic that no one could ignore it. Months before the festivities, university students struck in protest. Indeed, the cost was so sufficiently impressive that the Shah forbade his associates to discuss the actual figures.

However the Shah and the supporters of the Shah argue that the celebrations opened new investments in Iran, improved relationships with the other leaders and nations of the world, and provided greater recognition of Iran. Other actions that are thought to have contributed to his downfall include antagonizing formerly apolitical Iranians — especially merchants of the bazaars — with the creation in 1975 of a single party political monopoly (the Rastakhiz Party), with compulsory membership and dues, and general aggressive interference in the political, economic, and religious concerns of people's lives; and the 1976 change from an Islamic calendar to an Imperial calendar, marking the conquest of Babylon by Cyrus as the first day, instead of the migration of the Prophet Muhammad from Mecca to Medina. This supposed date was designed that the year 2500 would fall on 1941, the year when his own reign started. Overnight, the year changed from 1355 to 2535. During the extravagant festivities to celebrate the 2500th anniversary, the Shah was quoted as saying at Cyrus's tomb: "Sleep easily, Cyrus, for we are awake."

It has been argued that the White Revolution was "shoddily planned and haphazardly carried out", upsetting the wealthy while not going far enough to provide for the poor or offer greater political freedom.

Some achievements of the Shah — such as broadened education — had unintended consequences. While school attendance rose (by 1966 the school attendance of urban seven- to fourteen-year-olds was estimated at 75.8%), Iran's labor market could not absorb a high number of educated youth. In 1966, high school graduates had "a higher rate of unemployment than did the illiterate," and educated unemployed often supported the revolution.

Revolution

The overthrow of the Shah came as a surprise to almost all observers. The first militant anti-Shah demonstrations of a few hundred started in October 1977, after the death of Khomeini's son Mostafa. A year later strikes were paralyzing the country, and in early December a "total of 6 to 9 million" — more than 10% of the country — marched against the Shah throughout Iran.

On 16 January 1979, he made a contract with Farboud and left Iran at the behest of Prime Minister Shapour Bakhtiar (a long time opposition leader himself), who sought to calm the situation. Spontaneous attacks by members of the public on statues of the Pahlavis followed, and "within hours, almost every sign of the Pahlavi dynasty" was destroyed. Bakhtiar dissolved SAVAK, freed all political prisoners, and allowed the Ayatollah Khomeini to return to Iran after years in exile. He asked Khomeini to create a Vatican-like state in Qom, promised free elections, and called upon the opposition to help preserve the constitution, proposing a "national unity" government including Khomeini's followers. Khomeini rejected Bakhtiar's demands and appointed his own interim government, with Mehdi Bazargan as prime minister, stating that "I will appoint a state. I will act against this government. With the nation's support, I will appoint a state." In February, pro-Khomeini revolutionary guerrilla and rebel soldiers gained the upper hand in street fighting, and the military announced its neutrality. On the evening of 11 February, the dissolution of the monarchy was complete.

Exile and death

During his second exile, the Shah traveled from country to country seeking what he hoped would be temporary residence. First he flew to Assuan, Egypt, where he received a warm and gracious welcome from President Anwar El-Sadat. He later lived in Morocco as a guest of King Hassan II, as well as in the Bahamas, and in Cuernavaca in Mexico near Mexico City, as a guest of [[José Lóp

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