By: Mir M.Hosseini
Iran was under occupation of Allied Powers since Aug, 25, 1941.
Although the Red Army had confiscated most weapons and ammunition belonging to the Iranian Army, they also threatened to dismantle and move Iranian factories to Russia. In order to prevent this from happening, on Jan, 23, 1943, Iran had to accept another unfair agreement according to which; Iranian weapon factories were to produce Red Army orders. While only %20 of total production was Iran's share, Iranians had to undergo all expenses. The prices were to be determined in an unknown future and factories were to operate under Russian supervision.
Most of the pressure imposed on Iran by the Soviet Union had economical essence however, they were also able to use their political and military might whenever needed. The Russian embassy and consulates all around Iran have always been primary tools for manipulating key Iranian officials, orchestrating propaganda, and organizing pressure groups and lobbies.
In March, 18, 1943 another agreement was signed between the two states that forced Iran to allocate a credit line of over 2 million dollars to be used for the expenses of the USSR Army in Iran. While the Bolsheviks agreed to give merchandise in return, goods that were imported to Iran without paying tariffs and taxes were not delivered to authorities, and they were sold in black markets. Money from these sales went back to U.S.S.R., naturally.
Dr. Millspaugh, a US citizen who was hired by Iran to modernize the Iranian Ministry of Finance, reported that U.S.S.R. was trying to force Iran to pay them the money received as loan from the United States. This way, Iran was feeding the Big Bear financially while millions of Iranian citizens were starving from hunger.