The United States' Position on the Construction of the High Dam

in Egypt (1952-1956)

Abstract

The idea of constructing dams to control the Nile River's floodwaters and the potential for benefiting from them has preoccupied numerous Egyptian governments throughout history. Muhammad Ali Pasha attempted to build some dams and barrages to control a portion of the floodwater for use in irrigation projects, efforts which continued until the beginning of the twentieth century with the construction of the Aswan Reservoir in 1902. However, despite these efforts, a significant portion of the floodwaters continued to be lost into the Mediterranean Sea without being utilized. This prompted the consideration of building another dam with a greater storage capacity than the Aswan Reservoir, known as the High Dam to distinguish it from the Aswan Reservoir. The goal was to utilize the floodwaters, provide more water to increase and expand agricultural land, and additionally generate hydroelectric power. However, the idea of building the High Dam in the second half of the 1940s did not materialize into an executable project until after the July Revolution of 1952.

Studies and preliminary estimates were conducted to begin taking executive steps for the High Dam project. This led the United States to prepare to contribute a portion of the foreign currency required for the project by offering a grant to Egypt at the end of 1955, in cooperation with Britain and alongside a contribution from the World Bank, according to their terms. Their hope was to achieve objectives serving their interests not only in Egypt but across the Middle East, amidst the policy of superpowers competing for control over strategic regions during the Cold War years. Egypt rejected the conditions set by the United States, and the American administration soon realized that its aims for participating in the project were unattainable. This led it to withdraw its offer within a short period of no more than a few months, using pretexts claiming Egypt's inability, due to its weak economy, to complete the project and citing its negative repercussions on the Egyptian people. The United States faced criticism even from some Americans themselves, followed by Egypt's nationalization of the Suez Canal Company.

This research aims to shed light on the United States' stance regarding the construction of the High Dam. The research is divided into three main sections: the first section addressed the motivations for building the High Dam following the July 1952 Revolution; the second section dealt with the American position on the construction of the High Dam, its impact on the nature of relations with Egypt, and the reasons for the withdrawal of US participation in financing the dam project; while the third section focused on studying the American stance regarding Egypt's announcement of the nationalization of the Suez Canal on July 26, 1956.