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 in the lower Nile. The dam, originally limited in height by conservation concerns, worked as designed, but provided inadequate storage capacity for planned development and was raised twice, between 1907 and 1912 and again in 1929–1933. These heightenings still did not meet irrigation demands and in 1946 it was nearly over-topped in an effort to maximize pool elevation. This led to the investigation and construction of the Aswan High Dam upstream. The earliest recorded attempt to build a dam near Aswan was in the 11th century, when the Arab polymath and engineer Ibn al-Haytham (known as "Alhazen" in the West)