By: Mir M.Hosseini
On Jan, 29, 1943 Dr. Millspaugh, an advisor of American Economic Mission arrives in Tehran as the new Treasurer General of Persia. Iran was caught in the middle of the WWII and actually occupied by Allied Powers. Resources were drying up and better management was needed to regulate affairs. Dr. Arthur Millspaugh was faced with lots of objection not only by Russians but also by some merchants who were enjoying huge profits from stocking necessities. An orchestrated fight against him began soon in the media and in the parliament. Indeed Millspaugh had succeeded in controlling high inflation and making necessities available. After a while, the Toodeh party which was officially tied to the Soviet Union started criticizing his policies specially his efforts to impose income taxes and accused him in meddling in Iran's foreign affairs.
Finally on June, 22, 1944 Majlis approved a bill that stripped Millspaugh from all his powers. Dr. Millspaugh submitted his resignation the next day, however as there was no one else to replace him, Majlis had to change its decision and he was asked to continue his work again. He accepted to resume his responsibilities but in a press conference, he said that the U.S. should be recognized as Iran's liberator and if it was not for his efforts anarchy and chaos would have given the British and Soviets the excuse to control the country by force, or Iran would be occupied by international forces or another dictator would have been installed. He was however content with general public's support and grace for his work. He believed that Iranians needed to pay taxes, honor regulations rather than relations and that state offices should become clean from sloth and bribery. There was a trend in Iran that supported a third power to balance the role of Britain and Soviets.
After Millspaugh dismissed Ebtehaj, the head of Iran's Melli Bank from duty, wave of discontent, and criticisms finally made the parliament ratify another bill on Jan, 8, 1945 which took away all his authorities and left him with only the status of advisor. He did not get any support from the U.S government and was forced to resign and go back to the U.S nine days later. The U.S. government in a note expressed regret because the Iranian authorities did not give the American economic mission enough support to continue although Millspaugh and his team were sent to Iran by Iran's own request. The American military missions however continued their work as they were taking orders directly from the U.S. Secretary of State.