The Shah initiated major investments in infrastructure, subsidies and land grants for peasant populations, profit sharing for industrial workers, construction of nuclear facilities, nationalization of Iran's natural resources, and literacy programs which were considered some of the most effective in the world.
[citation needed] Throughout his life, Mohammad Reza was obsessed with height and stature, wearing elevator shoes to make himself look taller than he really was, often boasting that Iran's highest mountain Mount Damavand was higher than any peak in Europe or Japan, and proclaiming that he was always most attracted to tall women.
[22] According to Zonis, the result of his contradictory upbringing by a loving, if possessive and superstitious, mother and an overbearing martinet father was to make Mohammad Reza "a young man of low self-esteem who masked his lack of self-confidence, his indecisiveness, his passivity, his dependency and his shyness with masculine bravado, impulsiveness, and arrogance".
President Mustafa Kemal Atatürk of Turkey suggested to his friend Reza Khan during the latter's visit that a marriage between the Iranian and Egyptian courts would be beneficial for the two countries and their dynasties, as it might lead to Egypt joining the Saadabad pact.
[82] Under the leadership of Mosaddegh and his nationalist movement, the Iranian parliament unanimously voted to nationalise the oil industry, thus shutting out the immensely profitable AIOC, which was a pillar of Britain's economy and provided it political clout in the region.
Referred to as Operation Ajax,[86] the plot hinged on orders signed by Mohammad Reza to dismiss Mosaddegh as prime minister and replace him with General Fazlollah Zahedi, a choice agreed on by the British and Americans.
[100] American and British diplomats in their reports back to Washington and London in the 1950s were openly contemptuous of Mohammad Reza's ability to lead, calling the Shah a weak-willed and cowardly man who was incapable of making a decision.
[100] The very fact that Mohammad Reza was considered a coward and insubstantial turned out be an advantage as the Shah proved to be an adroit politician, playing off the factions in the elite and the Americans against the British with the aim of being an autocrat in practice as well as in theory.
[107] Perron was a man much resented for his influence on Mohammad Reza and was often described by enemies as a "diabolical" and "mysterious" character, whose position was that of a private secretary, but who was one of the Shah's closest advisors, holding far more power than his job title suggested.
[127] Mohammad Reza's first major clash with Ayatollah Khomeini occurred in 1962, when the Shah changed the local laws to allow Iranian Jews, Christians, Zoroastrians, and Baha'i to take the oath of office for municipal councils using their holy books instead of the Koran.
[128] Khomeini wrote to the Shah to say this was unacceptable and that only the Koran could be used to swear in members of the municipal councils regardless of what their religion was, writing that he heard "Islam is not indicated as a precondition for standing for office and women are being granted the right to vote...Please order all laws inimical to the sacred and official faith of the country to be eliminated from government policies.
The Shah's fifth five-year economic plan sought to achieve a reduction in foreign imports through the use of higher tariffs on consumer goods, preferential bank loans to the industrialists, maintenance of an overvalued rial, and food subsidies in urban areas.
Among the main factors hindering the growth rate in Iran are a lack of a favorable business environment, severe investment weakness, very low levels of productivity, and constant tension in the country's regional and global relations.
Nixon's apology covered up the reality that the Shah's ambitions to become the leader in the Persian Gulf Area and the Indian Ocean basin was placing a serious strain on his relationship with the United States, particularly as India had tested its first atomic bomb in May 1974.
[180] When interviewed on 60 Minutes by reporter Mike Wallace, he criticised American Jews for their presumed control over U.S. media and finance, saying that The New York Times and The Washington Post were so pro-Israel in their coverage that it was a disservice to Israel's own interests.
[192] Mohammad Reza financed Kurdish separatist rebels in Iraq, and to cover his tracks, armed them with Soviet weapons which Israel had seized from Soviet-backed Arab regimes, then handed over to Iran at the Shah's behest.
Then, in 1975, the countries signed the Algiers Accord, which granted Iran equal navigation rights in the Shatt al-Arab as the thalweg was now the new border, while Mohammad Reza agreed to end his support for Iraqi Kurdish rebels.
[214] In a televised speech in January 1975 explaining why he was lending Britain a sum equal to US$1 billion, Mohammad Reza declared in his usual grandiose style: "I have known the most dark hours when our country was obliged to pass under the tutelage of foreign powers, amongst them England.
"[215] Befitting all this attention and praise, Mohammad Reza started to make increasingly outlandish claims for the "Great Civilisation", telling the Italian journalist Oriana Fallaci in a 1973 interview with L'Europeo: Halfway measures, compromises, are unfeasible.
The fall of the Pahlavi order in 1979 removed the Shah's stabilizing efforts, leading to the Soviet invasion of Afghanistan, the destabilization of Pakistani politics, the emergence of Saudi Arabia as a major oil power, the rise of Saddam Hussein and Ba'athists in regional conflicts, and the subsequent Wahhabi-Salafi militancy.
[236] On 7 January 1978, an article Iran and Red and Black Colonization was published in the newspaper Ettela'at attacking Ruhollah Khomeini, who was in exile in Iraq at the time; it referred to him as a homosexual, a drug addict, a British spy and claimed he was an Indian, not an Iranian.
[240][241] As nationwide protests and strikes swept Iran, the court found it impossible to get decisions from Mohammad Reza, as he became utterly passive and indecisive, content to spend hours listlessly staring into space as he rested by the Caspian Sea while the revolution raged.
[239] The Shah had created a very centralised system in which he was the key decision-maker on all issues, and as historian Abbas Milani noted, he was mentally crippled in the summer of 1978 owing to his tendency to be indecisive when faced with a crisis which, combined with his cancer and the effects of the anti-cancer drugs, made his mood "increasingly volatile and unpredictable.
[264] In a major concession to the opposition, on 7 November 1978, Mohammad Reza freed all political prisoners while ordering the arrest of the former prime minister Amir-Abbas Hoveyda and several senior officials of his regime, a move that both emboldened his opponents and demoralised his supporters.
[265] On 21 November 1978, the Treasury Secretary of the United States Michael Blumenthal visited Tehran to meet Mohammad Reza and reported back to President Jimmy Carter, "This man is a ghost", as by now the ravages of his cancer could no longer be concealed.
[269] Despite the opposition of the other National Front leaders, Sadighi visited the Niavaran palace several times in December 1978 to discuss the terms under which he might become prime minister, with the main sticking point being that he wanted the Shah not to leave Iran, saying he needed to remain in order to ensure the loyalty of the military.
French chefs from Maxim's of Paris prepared breast of peacock for royalty and dignitaries from 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 and drank from Baccarat crystal glasses.
[297] Though this was such a carefully guarded secret that not even the Americans were aware of it (as late as 1977 the CIA submitted a report to President Carter describing the Shah as being in "robust health"), the knowledge of his impending death left Mohammad Reza depressed and passive in his last years, a man no longer capable of acting.
[314] When he first met Mohammad Reza, Torrijos taunted him by telling him "it must be hard to fall off the Peacock Throne into Contadora" and called him a "chupon", a Spanish term meaning a sucker or pacifier that has all the juice squeezed out of it, which is slang for someone who is finished.
[355] In a 1974 interview which was shown in a documentary titled Crisis in Iran, Mohammad Reza told Mike Wallace that the rumours of corruption were "the most unjust thing that I have heard," calling them a "cheap accusation" whilst arguing the allegations were not as serious as those regarding other governments, including that of the United States.