The series of so-called "reform" measures which were promulgated by the Shah on January 26, 1963 (Bahman 6, 1341 AHS) in compliance with the orders of the Americans (in the framework of Kennedy's "Alliance for Progress" plan) and were collectively designated the "White Revolution," were not only ineffective, but also in many ways destroyed the economic basis of the country.
At the same time, the movement which began under the leadership of Imam Khomeini (upon whom be peace) alarmed America who realized that this movement would lead to continuous, bloody revolution against the United States and its protégé, the regime in Iran.
These two facts prompted the US administration's decision to revive the Capitulation Bill and establish "consular judicial rights" in Iran so that US personnel could, with peace of mind, directly protect the Shah's throne and their interests in this part of the world. The proposal was first submitted by the Americans in March 1962 (Esfand 1340 AHS) before the Shah's reform program was implemented.
However, for some reasons it was not seriously followed up until after the bloody uprising of Khordad 15 (June 5, 1963).
The culmination of Imam Khomeini's movement and reports from American analysts, showing that the Shah's regime was unable to suppress the movement and attract the support of the masses, motivated the renewed proposal of this plan and placed the regime under immense pressure to accept it.