Office of the Historian

511. Telegram From the Embassy in Egypt to the Department of State1

Cairo, July 26, 1956—11 p.m.

146. Nasser in two and half hour speech billed as “answer American and British conspiracies against Egypt” announced nationalization Suez Canal Company, said High Dam would be built with LE 35 million yearly net income from Canal and read details Nationalization Decree according which: all committees charge its administration [Page 907] abolished; share holders to be compensated today’s price Paris bourse (payment to be made after government assumes control); autonomous Egyptian Government agency established in Min-Com to operate Canal; all Company assets Egypt and abroad frozen; banks prohibited cash Company checks except by permission new agency; contravention decree entails imprisonment. Nasser said Egyptians already beginning assume charge and all employees ordered remain their positions.2

Nasser led up to nationalization announcement with long review “imperialistic efforts thwart Egyptian independence”, giving exhaustive chronological accounts arms deal (including caustic description Allen’s mission3) and High Dam negotiations. Both depicted Western attempts dominate Egypt and contrasted, in passing, “no strings United States public and private and German contributions to Israel”. (Earlier in speech in vitriolic language Nasser had attacked Israel’s ambition to extend from Nile to Euphrates. This would be met, however, by united Arab world from Atlantic to Persian Gulf.)

Nasser said Soviets had offered finance Dam during interval Kaissouni Washington visit and February Black talks, and Shepilov during July [June] visit had offered aid all projects on basis long-term loans no conditions, saying at same time he wanted Egypt have good relations with West.4 Nasser had replied he would discuss details in course his trip Moscow.

Nasser also attacked Department’s statement5 quoting Sudan Prime Minister to prove Egypt and Sudan would reach waters settlement anyway and citing United Nations reports to reject contention Egypt’s economy unsound. (He recalled Black said at his house June 206 that he was determined finance Dam and was sure United States and United Kingdom would go along.)

Speech on to Arabs preceded by recordings of National Anthem, liberation song and other martial music. In earlier and final sections [Page 908] of speech (anti-imperialism, Egypt’s strength) Nasser was clearly emotional and excited. In sections relating history negotiations he was by turns sarcastic, condescending, and occasionally facetious. Speech which heavily colloquial in tone was wildly applauded throughout.

Byroade
  1. Source: Department of State, Central Files, 974.7301/7—2656. Confidential; Niact. Received at 12:23 a.m., July 27. Repeated niact to London and Paris. Passed to the Departments of the Army, Navy, and Air Force at 1:30 a.m., July 27.↩
  2. A translation of the Nationalization Decree was transmitted in despatch 188 from Cairo, September 5. (Ibid., 974.7301/9–556) A translation of Nasser’s speech was transmitted in despatch 97 from Cairo, July 31. (Ibid., 774.00/7–3156) The Nationalization Decree and an extract from Nasser’s speech are printed in The Suez Canal Problem, July 26–September 22, 1956 (Department of State Publication No. 6392), pp. 25–32.↩
  3. See telegrams 632 and 654, vol. XIV, pp. 537 and 551.↩
  4. See Document 413.↩
  5. Reference is presumably to the Department’s press release of July 19 announcing the Aswan Dam decision.↩
  6. See Document 406.↩