… the rights of a foreign people to choose their own system of government
I haven’t been following this thread in detail, so my response is merely to this single point.
The question is: do these foreign people (or any people) have such a right? In other words: do the people in a country have the right to form any type of government they like? The answer is that rights are not collective. Rights are for the protection of individuals. Governments are legitimate only to the extent that they protect individual rights. Therefore, if an overwhelming majority decide that they want to establish a Nazi state and deprive some tiny minority of its rights, they would not have the right to do so.
In other words, the right to action does not flow from being in the majority. It is quite okay to use a majority vote as a procedure to decide things that do not undermine individual rights; but, democracy is not a primary. Indeed, if it becomes mob-like deprivation of the minority – even a minority of one – it is evil to the extent it deprives people of rights. Note this: a government is not evil to the extent it does not represent the will of all people, only to the extent it deprives people of rights.
Most educated people in the West recognize that unlimited democracy is evil and that rights are important too. However, they still hold democracy as a primary. This is where Objectivism disagrees. According to Objectivism, individual rights are the primary in forming political systems.
In the 1900s various British colonies in Asia claimed the right to “self government”. This was claimed as a primary, while it really was not. Take India, for instance. Of course the British deprived Indians of certain rights. However, from this, it does not follow that Indians may morally form a government of locally-born folk who would then become tyrants in the place of the foreign-born folk. In what way does it matter, to the person who’s rights are being deprived, whether his oppressor is local or foreign? What really happened in most cases is that who was being deprived of rights and how was all that changed.
I haven’t found any information backing up the claims that Mossadeq had no legitimacy.
You now have the context required to know how an Objectivist would judge his legitimacy; and, winning the popular vote is not the primary factor in that judgment.