Nasser came to power in 1954 and had persuaded the United States , Britain and the [[World Bank]] to lend money to build the [[Aswan High Dam]] which would supply Egypt with [[hydro-electric power]]. In July 1956 the US withdrew its promise of a loan (the largest component of the international loan), followed by the other participants. To secure alternative funding, Nasser nationalised the Suez Canal Company. This was perceived as an act of aggression by Britain and France. The two powers drew up an intervention plan with Israel: Israel would respond to Egyptian provocations by launching an attack; Anglo-French forces would then 'intervene' to protect the security of the canal. | Nasser came to power in 1954 and had persuaded the United States , Britain and the [[World Bank]] to lend money to build the [[Aswan High Dam]] which would supply Egypt with [[hydro-electric power]]. In July 1956 the US withdrew its promise of a loan (the largest component of the international loan), followed by the other participants. To secure alternative funding, Nasser nationalised the Suez Canal Company. This was perceived as an act of aggression by Britain and France. The two powers drew up an intervention plan with Israel: Israel would respond to Egyptian provocations by launching an attack; Anglo-French forces would then 'intervene' to protect the security of the canal. |