Constitutional Revolution
When Nasser al-Din Shah Qajar was assassinated by Mirza Reza Kermani in 1896, the crown passed to his son Mozaffar-e-din. Mozaffar-e-din Shah was moderate and kind, but was a relatively ineffective ruler. Royal extravagances coincided with an inadequate ability to secure state revenue which further exacerbated the financial woes of the Qajar. In response the Shah procured two large loans from Russia (in part to fund personal trips to Europe.) Public anger mounted as the Shah sold off concessions - such as road building monopolies, authority to collect duties on imports, etc. - to European interested in return for generous payments to the Shah and his officials. Popular demand to curb arbitrary royal authority in favor of rule of law increased as concern regarding growing foreign penetration and influence heightened.
The shah's failure to respond to protests by the religious establishment, the merchants, and other classes led the merchants and clerical leaders in January 1906 to take sanctuary from probable arrest in mosques in Tehran and outside the capital. When the shah reneged on a promise to permit the establishment of a "house of justice", or consultative assembly, 10,000 people, led by the merchants, took sanctuary in June in the compound of the British legation in Tehran. In August the shah, through the issue of a decree promised a constitution. In October an elected assembly convened and drew up a constitution that provided for strict limitations on royal power, an elected parliament, or Majles, with wide powers to represent the people, and a government with a cabinet subject to confirmation by the Majles. The shah signed the constitution on December 30, 1906, but refusing to forfeit all of his power to the Majles, attached a caveat that made his signature on all laws required for their enactment. He died five days later. The Supplementary Fundamental Laws approved in 1907 provided, within limits, for freedom of press, speech, and association, and for security of life and property. The hopes for constitutional rule were not realized, however.
Mozaffar-e-din Shah's son Mohammad Ali Shah (reigned 1907–1909), who, through his mother, was also the grandson of Prime-Minister Amir Kabir (see before), with the aid of Russia, attempted to rescind the constitution and abolish parliamentary government. After several disputes with the members of the Majlis, in June 1908 he used his Russian-officered Persian Cossacks Brigade to bomb the Majlis building, arrest many of the deputies, and close down the assembly. Resistance to the shah, however, coalesced in Tabriz, Isfahan, Rasht, and elsewhere. In July 1909, constitutional forces marched from Rasht to Tehran lead by Mohammad Vali Khan Sepahsalar Khalatbari Tonekaboni, deposed the Shah, and re-established the constitution. The ex-shah went into exile in Russia. Mohammad Ali Shah died in San Remo, Italy in April 1925. As fate would have it, every future Shah of Iran would also die in exile.
On 16 July 1909, the Majles voted to place Mohammad Ali Shah's 11 year old son, Ahmad Shah on the throne. Although the constitutional forces had triumphed, they faced serious difficulties. The upheavals of the Constitutional Revolution and civil war had undermined stability and trade. In addition, the ex-shah, with Russian support, attempted to regain his throne, landing troops in July 1910. Most serious of all, the hope that the Constitutional Revolution would inaugurate a new era of independence from the great powers ended when, under the Anglo-Russian Agreement of 1907, Britain and Russia agreed to divide Persia into spheres of influence. The Russians were to enjoy exclusive right to pursue their interests in the northern sphere, the British in the south and east; both powers would be free to compete for economic and political advantage in a neutral sphere in the center. Matters came to a head when Morgan Shuster(also spelled Schuster), a United States administrator hired as treasurer general by the Persian government to reform its finances, sought to collect taxes from powerful officials who were Russian protégés and to send members of the treasury gendarmerie, a tax department police force, into the Russian zone. When in December 1911 the Majlis unanimously refused a Russian ultimatum demanding Shuster's dismissal, Russian troops, already in the country, moved to occupy the capital. To prevent this, on 20 December, Bakhtiari chiefs and their troops surrounded the Majles building, forced acceptance of the Russian ultimatum, and shut down the assembly, once again suspending the constitution.
Read more about this topic: Qajar Dynasty