The 1919 agreement was concluded between the British and Iran through complicity of Vossouqoddowleh, then the prime minister. In 1919, Iran sent a mission to Paris Peace Conference to express Iran’s wishes for cancellation of 1907 agreement, capitulation law and all foreign concessions. However, the British impeded the admittance of Iranian mission to the Peace Conference. According to the 1919 agreement concluded between Iran and the British, all military and financial organizations were put under the British supervision. The secret agreement was concluded between Vossouqoddowleh and Sir Percy Cox, the British minister to Tehran. The British did not wait for the ratification of the agreement by the national assembly, and sent a military mission headed by General Dixon and a financial mission under Hermitage Smith for forming the new military organization and the financial administration. They lent Iran 2 million pound, with 7% interest rate. However, the league of nations did not recognize this treacherous agreement which would turn Iran to a British protectorate. In Iran, the liberals protested against it, and France and the United States objected to the British for imposing such an agreement to Iran.
Vossouqoddowleh ordered for the detainment of the protesters, suspended the press and sent Ahmad Shah Qajar to Europe, and began to carry out the contents of the agreement. However, he was forced to leave his office. Mirza Hassan Khan Moshiroddowleh took the cabinet and stopped the implementation of the agreement, and following 21st March coup, it was nullified.