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At the war’s end, private interests hopeful of exploiting the region’s oil urged their governments to ignore war-time promises to Arab leaders.
A variety of small, divided Arab states would be much easier to maneuver into oil deal$ than a large, independent Arab republic. The European powers agreed. France assumed control of Syria and Lebanon. Britain took Palestine and Mesopotamia. London granted local control to kings and sheiks favorable to British interests. These arrangements were ratified by the League of Nations; Britain’s Palestinian colony was officially a League "Mandate."
The new states needed boundaries. Five days of wrangling over the borders (at a conference in Baghdad) ended when Sir Percy Cox, British High Commissioner, arbitrarily drew the boundary lines setting off Iraq, Kuwait, Jordan and Saudi Arabia.
The Ottoman Empire’s three Mesopotamian provinces of Mosul, Baghdad and Basra became a new nation,
Iraq. What had been an adjunct of Basra became a separate political entity,
Kuwait. Tiny Kuwait obtained 310 miles of coastline, Iraq just 36. Britain offered the Iraqi throne to the Bedouin leader Faysal, Kuwait to the al-Sabah family, Transjordan to the Hashemite leader Hussein and confirmed Ibn Saud as ruler of Saudi Arabia (the world’s only country named after its ruling family).
Britain backed up its plans for the new oil-rich nations with military might. A nationalist revolt demanding the promised independence quickly spread throughout Iraq. The British army mustard-gassed Shia rebels while the Royal Air Force bombed the Kurds. (Winston Churchill, then Secretary of State for War, recommended dropping mustard gas on the Kurds, too.)
The opening up of Palestine to Jewish settlements, meanwhile, served imperial strategy by furthering division in the region and by establishing a beachhead for British interests.
The postwar settlements guaranteed British access to oil in Iraq, Kuwait and the Arabian peninsula; British money and military-backed diplomacy ensured British control over Iran.
British dominance faced competition from U.S. capital, however."