Aswan Dam allies in the Middle East, including Turkey and Iraq, were irritated and jealous that Egypt, a persistently neutral country, was being offered so much aid. In June 1956, the Soviets offered Nasser $1.12 billion at 2% interest for the construction of the dam. On 19 July the U.S. State Department announced that American financial assistance for the High Dam was "not feasible in present circumstances." On 26 July 1956, with wide Egyptian acclaim, Nasser announced the nationalization of the Suez Canal as well as fair compensation for the former owners. Nasser planned on the revenues generated by the canal helping
Aswan Low Dam granite. When constructed, the Old Aswan Dam was the largest masonry dam in the world. The design also included a navigation lock of similar construction on the western bank, which allowed shipping to pass upstream as far as the second cataract, whereas a portage overland was previously required. At the time of its construction, nothing of such scale had ever been attempted. Despite initial limitations imposed on its height, due to concern for the Philae Temple, the initial construction was soon found to be inadequate for development needs, and the height of the dam was raised in two phases, between