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was not only political but also economic. It was then suggested to announce a

withdrawal of the West’s offer to help finance the dam. 734

A meeting on 19 July was conducted between Dr Ahmed Hussein the

Egyptian Ambassador to the US and Dulles. As was expected by the Americans the

Egyptians announced their acceptance of the West’s offer to finance the dam.

However Dulles in the meeting informed Hussein that the offer to finance the dam

had been withdrawn. 735 The US’s official withdrawal was followed, on 20 July, by

Britain’s own cancellation of its offer to finance the project. 736 Within less than a

week these fateful decisions would provoke Nasser to take revenge by nationalising

the mainly British-and-French-owned Suez Canal Company.

A day before the scheduled meeting on 22 July between the Ruler and the

NUC, Colonel EF Henderson of the Residency held a tête-à-tête with Al-Shamlan, who

said he did not believe that the Ruler would set a date for Belgrave’s departure nor

would he agree to the Party’s demand concerning the Administration Council. The

Acting Secretary believed that then the NUC would call for a long-standing strike,

which would likely be a bluff. To that Henderson replied that the Belgrave question

to his own knowledge had been resolved. In relation to the Administration Council

the Residency’s official pointed out that the Council was due to run until the end of

its term in a year’s time. Henderson also pointed out the political gains they had

managed to achieve over time and had manifested in the establishment of the Health

734 FRUS, vol. XV, ‘Arab-Israeli Dispute January 1-July 26, 1956’. Doc. 442: Memorandum from the
British Embassy to the Department of State, 10 July 1956.
735 FRUS, vol. XV, ‘Arab-Israeli Dispute January 1-July 26, 1956’. Doc. 478: Memorandum of a
Conversation, Department of State, 19 July 1956.
736 ‘Aswan Offer Withdrawn’, the Times, 21 July 1956, 6.

© Hamad E. Abdulla 237