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likely to win these broader powers, however, as the Majlis is jealous of its prerogatives,
and public opinion strongly opposes any move toward a revival of the dictatorship im-
posed by Reza Shah, father of the present ruler.
A more subtle threat to the power of the government is that of the Tudeh Party,
which directs its appeals toward industrial workers and the underprivileged classes
generally. Alhough it has no official representation in the Majlis and is supported by
only a few deputies, the Tudeh Party is the only political organization in Iran which
appeals directly to the people for support; the other parties are controlled by large
landowners, tribal leaders, and other notables, who use their local power to obtain the
election of their candidates. After suffering a serious decline in strength and prestige
in 1947, the party is currently being revived through extensive recruiting and the for-
mation of secret cells. While no reliable estimates of its present membership are
available, its system of provincial and urban councils headed by a large national com-
mittee and its use of affiliated groups make it the best organized political party in
Iran.
The Tudeh Party's strident press follows the line laid down by Soviet broadcasts to
Iran, and the contact which party leaders maintain with the Soviet Embassy in Tehran
makes it certain that the party is receiving advice and guidance from trained Com-
munist organizers and funds from Soviet sources. The party may be expected to test
its renewed strength by promoting labor troubles and communal disorders, timing
such activity to coincide with peaks of Soviet pressure on Iran, and it will make a drive
for representation in the XVI Majlis, which is due to be elected in 1949.
Despite the political divisions in Tehran, the activities of the Tudeh Party, and
Sovet agitation, the central government enjoys a relatively high degree of success in
maintaining internal security and its control over outlying sections of the country.
In particular, relations between the government and the habitually restive tribes have
lately shown considerable improvement following conciliatory government moves.
These moves were dictated by the exigencies of the period of Soviet occupation, which
gave rise to autonomist movements and to Tudeh ascendancy and by the more recent
realization by the army high command that tribal assistance was needed in curbing
Soviet penetration and subversion.
2.
ECONOMIC SITUATION.
In certain basic respects, Iran's economic situation is favorable. Agricultural
production in 1948 should be sufficient to meet the country's food requirements (except
in tea and sugar) and to provide a surplus of some agricultural products for export.
Although Iran continues to suffer from government deficit financing and an unfavor-
able balance of trade, its financial position will be improved by the Anglo-Iranian Oil
Company's expanding production, which is providing Iran with increased revenues
and foreign exchange.
Nevertheless, Iran faces serious economic problems, which are mainly responsible
for a generally inarticulate but growing dissatisfaction among the people. The peas-
ants, who form the bulk of the population, are subjected to constant exploitation by
SECRE
4
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Context sent to Scholar
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"ocrText": "likely to win these broader powers, however, as the Majlis is jealous of its prerogatives,\nand public opinion strongly opposes any move toward a revival of the dictatorship im-\nposed by Reza Shah, father of the present ruler.\nA more subtle threat to the power of the government is that of the Tudeh Party,\nwhich directs its appeals toward industrial workers and the underprivileged classes\ngenerally. Alhough it has no official representation in the Majlis and is supported by\nonly a few deputies, the Tudeh Party is the only political organization in Iran which\nappeals directly to the people for support; the other parties are controlled by large\nlandowners, tribal leaders, and other notables, who use their local power to obtain the\nelection of their candidates. After suffering a serious decline in strength and prestige\nin 1947, the party is currently being revived through extensive recruiting and the for-\nmation of secret cells. While no reliable estimates of its present membership are\navailable, its system of provincial and urban councils headed by a large national com-\nmittee and its use of affiliated groups make it the best organized political party in\nIran.\nThe Tudeh Party's strident press follows the line laid down by Soviet broadcasts to\nIran, and the contact which party leaders maintain with the Soviet Embassy in Tehran\nmakes it certain that the party is receiving advice and guidance from trained Com-\nmunist organizers and funds from Soviet sources. The party may be expected to test\nits renewed strength by promoting labor troubles and communal disorders, timing\nsuch activity to coincide with peaks of Soviet pressure on Iran, and it will make a drive\nfor representation in the XVI Majlis, which is due to be elected in 1949.\nDespite the political divisions in Tehran, the activities of the Tudeh Party, and\nSovet agitation, the central government enjoys a relatively high degree of success in\nmaintaining internal security and its control over outlying sections of the country.\nIn particular, relations between the government and the habitually restive tribes have\nlately shown considerable improvement following conciliatory government moves.\nThese moves were dictated by the exigencies of the period of Soviet occupation, which\ngave rise to autonomist movements and to Tudeh ascendancy and by the more recent\nrealization by the army high command that tribal assistance was needed in curbing\nSoviet penetration and subversion.\n2.\nECONOMIC SITUATION.\nIn certain basic respects, Iran's economic situation is favorable. Agricultural\nproduction in 1948 should be sufficient to meet the country's food requirements (except\nin tea and sugar) and to provide a surplus of some agricultural products for export.\nAlthough Iran continues to suffer from government deficit financing and an unfavor-\nable balance of trade, its financial position will be improved by the Anglo-Iranian Oil\nCompany's expanding production, which is providing Iran with increased revenues\nand foreign exchange.\nNevertheless, Iran faces serious economic problems, which are mainly responsible\nfor a generally inarticulate but growing dissatisfaction among the people. The peas-\nants, who form the bulk of the population, are subjected to constant exploitation by\nSECRE\n4"
}