U.K. Ordered to Pay Iran $650m for Canceled Arms Deal

1970s deal for battle tanks and military vehicles fell through after the Shah was deposed in Islamist Revolution.

An international arbitration court in The Hague on Sunday ordered the British government to pay Iran $650 million in compensation for a canceled 1970s arms deal.

The compensation money, which is now waiting to be withdrawn, is to cover an outstanding 1971-1976 deal canceled after the Islamist Revolution deposed the Shah. The Shah had ordered 1,500 Chieftain battle-tanks and 250 military vehicles, according to The Independent.

Britain's International Military Service, which struck the deal with the Shah, and Iran's Defense Ministry will finalize the settlement in the coming weeks, according to The Independent.