Page "Gamal Abdel Nasser" Paragraph 46

On 26 July 1956, in retaliation for the loss of funding and to help pay for the Aswan project, Nasser gave a speech in Alexandria where he denounced Western influence in the Arab world and announced the nationalization of the Suez Canal Company, in breach of the agreement he had signed on 19 October 1954.

He also ensured that existing stockholders would be paid off.

The nationalization move was greeted by the crowd very emotionally, and throughout the Arab world, thousands entered the streets shouting slogans of support.

US ambassador Henry A. Byroade stated " I cannot over-emphasize popularity of the Canal Company nationalization within Egypt, even among Nasser's enemies.

" According to Aburish, this was Nasser's largest pan-Arab triumph at the time and " soon his pictures were to be found in the tents of Yemen, the souks of Marrakesh, and the posh villas of Syria.

" The official reason given for the nationalization was that funds from the Suez Canal would be used for the construction of the dam in Aswan.