Foreign relations of the Soviet Union 1955, Secretary Dulles announced that the United States, together with Great Britain, was providing nearly $75 million in aid to Egypt to help in the construction of the Aswan Dam on the Nile River. In response to Nasser's increasing attacks on Western colonialism and imperialism and Egypt's continued alliance with the Soviet Union, Britain and the United States withdrew funds for the Aswan Dam in July 1956. That action drove Egypt further toward an alliance with the Soviet Union and was a contributing factor to the Suez Crisis later in 1956. Nasser responded to the aid cut by nationalizing the
Aswan Dam Though the Czech arms deal actually increased the American willingness to invest at Aswan, Great Britain cited the deal as a reason for reversing its promise of funds. What angered Dulles much more was Nasser's diplomatic recognition of China, which was in direct conflict with Dulles's policy of containment. There are several other reasons why the U.S. decided to withdraw its offer of funding. Dulles believed that the USSR would not fulfill its commitment to help the Egyptians. He was also irritated by Nasser's neutrality and attempts to play both sides of the Cold War. At the time, other western