On February 2, 1958 Egypt and Syria declared the establishment of a common federation: the United Arab Republic. The destruction of Israel was their main goal. In 1955, the USSR made an arms deal with Egypt. This angered Israel. While Britain sided with the US and agreed to withhold further funding for the construction of Egypt's Aswan Dam in July 1956, Britain was also furious at the action and believed that America's withdrawal of aid had provided the opening for Soviet penetration of Egypt. Both Britain and Israel now saw Egypt as a threat to regional stability.