From Aswan to Suez

Welcome to the 1960s! On 9 January 1960 the construction of the Aswan Dam in Egypt starts with a bang as President Nasser ignites the first salvo of dynamite. It is a huge an expensive engineering project of great importance to the economy and development of the country.

Four years earlier a drama started. In the middle of it - an energetic Nasser with ambitions to unite the Arabs and throw out the European colonizers from the Middle East. But new players are replacing the old. The Soviet Union and the US are upping the ante in their Cold War, and the Middle East is one of their arenas. The struggle to finance the 1 Billion US$ Aswan Dam, and Cold War politics, triggers Nasser to nationalize the Suez Canal. Israel, UK and France react jointly and invade Egypt to secure their own interests - the Suez Crisis of 1956 unfolds. The US is focused on the Cold War rivalry with The Soviet Union. President Eisenhower is furious and presses the invaders to pull out. The fall of the British Empire, which had been in the process for a few years, became obvious for all to see.

The Nasser Lake dark blue (in the forefront) stretching 160 km in Sudan, and another 320 km in Egypt to the Aswan Dam. The Nile valley green-blue (from Aswan Dam towards the upper left). The Red Sea (upper right) and Sinai Peninsula (top middle). The Suez Canal is on the left side of the Sinai Peninsula.

Nasser observing construction of the Aswan Dam.

Background

In the late 1940s anti-imperialism is growing in the Arab world. Arab nationalism is growing and so is Pan-Arabism, the idea that Arabs can unite and build a commonwealth founded on a common language, history and culture. The loss of the war in Palestine in 1948 was a great blow, and more people are hostile to the British and French. In Egypt people are increasingly dissatisfied with the political parties, King Farouq and the British presence in the country. Mass demonstrations bring Cairo to a standstill. The Wafd party wins the elections of 1950 and start negotiations with the British for full independence. These fail and Wafd abrogate the Anglo-Egyptian Treaty of 1936. For the British, this would have meant to withdraw the troops and control of the Suez Canal. The Canal is owned by a private company registered in Paris. It is still a cornerstone in British foreign policy, the state owns stocks in the company, and is not ready to retreat. Local guerilla attack the British, and they respond with force occupying Egyptian police stations in the Canal Zone. On January 25 1952, 46 policemen are killed in Ismailiyya.  Demonstrators in Cairo turn to violence and burn some of the richest quarters of the town on Black Saturday. The King dismisses the government and parliament, public trust in the new government is falling.

The Free Officers

A group of young officers led by Gamal Abdel Nasser have been gathering in secret to oppose the British imperialism in Egypt. They organize other officers in secret and connects with a broad spectrum of groups including the Muslim Brotherhood. The Black Saturday change their scope. From being anti-imperialist they discuss to overthrow King Farouq.  On 23 July 1952 they take power in a coup. Anwar Sadat announces the coup on radio in name of the General Muhammad Naguib, commander in chief of the armed forces. – A civilian government is formed and the King is exiled. They initiate a land reform distributing expropriated land from large land-holders. This is very popular among most Egyptians. Nasser creates a Revolutionary Command Council (RCC) to oversee the revolution. All political parties are prohibited in 1953, and Nasser found a new party, the Liberation Rally. The monarchy is abolished and a Republic with Naguib as president is declared. This is the Egyptian to rule since Pharaonic times. An agreement is reached with the British to withdraw. But conflict is increasing between Naguib and Nasser. An attempt of a Muslim Brotherhood member to assassinate Nasser on 26 October 1954 fails. Nasser clamps down on the Brotherhood and puts Naguib under house arrest.

Economic challenges

But Egypt is very reliant on agriculture (35% of GDP) with little industry (13% of GDP). This is due to low investments. A hydroelectric dam on the Nile is planned to relieve some of the problems. The construction of a dam at Aswan will store enough water to increase cultivation from 6 million to 8-9.5 million acres. The electricity produced will stimulate industry and public consumption of energy. The cost is staggering, 1 Billion US$ is not available in Egypt, and foreign capital is needed. The World Bank is willing to provide US$ 200 million and the US and UK the same amount in loans. Not enough to finance it completely, but the US and UK plan to use the loans to influence Egypt.  

Military strengthening

Then Nasser turns to strengthening the military to be able to contain and possibly confront Israel. To do this Egypt will have to buy new equipment and Nasser turns to the US. The US is willing to supply on the condition that Egypt enters into a Middle East Defense Organization against the Soviet Union.  As this will extend British military presence, Nasser rejects it. He is not afraid of the Soviets, more so of the Israelis. The British Prime Minister Antony Eden starts to see Nasser as an antagonist and refuse to sell weapons. Nasser does not want to take side in the Cold War, and Egypt enters the Non-Aligned Movement whose members prefer to keep relations with both the US and Soviet Union. Nasser turns to the Chinese, and they provide connections with the Soviets. They are willing to supply him without preconditions. In September 1955 an agreement is signed between the Soviet satellite Czechoslovakia to supply modern equipment: 275 tanks and 200 warplanes. To Eisenhower this is undermining the US attempts to contain Communism.

Nationalization of the Suez Canal

On 19 July 1956 Eisenhower withdraws the US financial support of the Aswan dam, without warning or explaining it to the Egyptians. One week later Nasser nationalizes the Suez Canal. The company will be compensated, and the revenues of the Canal will finance the Aswan Dam. The Israeli Prime Minister David Ben-Gurion has been worried about Nasser for some time and sees an opportunity. He contacts the French asking if they are willing to co-operate in an invasion of the Sinai and Canal Zone. France have at this point just let go of its former colonies Morocco and Tunisia (March 1956). And in Algeria, a part of France with one million French citizens, a war of independence has started. The French are not willing to let Algeria go, and are annoyed by Nasser’s expressed support of Algerian opposition, and by letting them have offices in Cairo. The French government is positive to the Israelis and approaches Anthony Eden with the plan. A meeting on 24 October 1956 between the French and UK Foreign Ministers and Ben-Gurion in Paris result in a secret agreement. Israel will invade Sinai. The UK and France will insist both parties to end hostilities and withdraw from the Canal Zone. British troops will then occupy it.  The Israelis, Wary of the British after the experience of the Palestine Mandate insist on a written agreement, and get it.

The Suez Crisis

In the Arab world it is known as the Tripartite Aggression unfolds as Israel invades Sinai according to the plan on 29 October. Britain and France present their ultimatum to the parties, while Israeli forces are yet not close to the Canal. Port Said is bombed, paratroopers take it and more than a 1000 Egyptians die. Eisenhower is very surprised and reacts strongly. In Hungary a revolution erupted 23 October, and the new government under Imre Nagy withdraws the country from the Warsaw Pact. This is one of the most important developments since the Cold War started, and now the Suez Crisis is distracting the world’s attention. The Soviet gains ground as they defend Egypt against an invasion. At the same time they deploy the military to squash the revolution in Hungary. The CIA had also been plotting to overthrow the Syrian government on 29 October, but the plan was cancelled, and then discovered by the Syrian authorities.  A furious Eisenhower goes as far as to threaten to sell UK Sterling bonds held by the US Reserve. This would have led to serious negative impact on the British economy. Eden capitulates, and the UK and France agrees with a UN cease-fire on 7 November. The UK and France withdraw by December 1956, and Israel by March 1957.|

The results

Although Egypt suffered a military defeat, Nasser gained enormously politically. He becomes a hero in the Arab world. Israel won clearly militarily, but in the Arab world it is increasingly seen as a tool for European imperialists. And it becomes more difficult to be accepted as a Jewish state.  France lost influence in the Arab world and this undermined their position in Algeria. France started to arm the Israelis and support them establishing their nuclear program. The UK lost a lot of trust and credibility in the Arab world by the involvement. Eden resigned from office in January 1957.

Epilogue

The 1960s have just started, in two years France will lose Algeria. Pan-Arabism energizes the masses, and the nationalists think they are invincible. In 1967 a six day long military earthquake, which still affects the region, changes the game. By the end of 1970 the Aswan Dam is completed and the Nasser Lake is created. But Nasser is dead and so the Pan-Arab dreams are fading fast. A new old ideology, Islamism is soon awakening to lead some of the disappointed.

Nasser, Soviet leader Khrushchev, President Arif of Iraq and President Sallal of Yemen mark the first stage of the Aswan Dam in 1964.

The Aswan Dam with an installed capacity of 2100 Megawatts.

Sources and more information

The Arabs, Eugene Rogan, Basic Books New York 2009.

Britannica http://global.britannica.com/EBchecked/topic/180382/Egypt

http://news.bbc.co.uk/onthisday/hi/dates/stories/may/14/newsid_2511000/2511423.stm

I am open to your comments and proposals.

You may send me an e-mail on bjarte.bjorsvik@hotmail.no

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Bjarte Bjørsvik