Initially the Egyptian Revolution of 1952 did not alter relations with the United States, which continued sending foreign aid. By 1956, the U.S. was alarmed at the closer ties between Egypt and the Soviet Union and prepared the OMEGA Memorandum as a stick to reduce the regional power of President Gamal Abdel Nasser. When Egypt recognized Communist China, the U.S. ended talks about funding the Aswan Dam, a high prestige project much desired by Egypt. The dam was later built by the Soviet Union. When Nasser nationalized the Suez Canal in 1956, the Suez Crisis erupted with Britain and France threatening war to retake control of the canal and depose Nasser. U.S. Secretary of State John Foster Dulles proposed creating an international consortium to run the canal, a solution which Nasser rejected.