Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-07-29

The Western world was rocked
back on its heels on Thursday
when Egypt's President Canal
Abdel Nasser ordered the immediate
seizure of the Suez Canal. Col.
NaSSer, striking back at Britain
and the United States for their
rejection of financial aid to the
Aswan Dam project, announced
that revenue from the canal would
build the dam
Reaction in London was sharp
and prompt. Prime Minister
Anthony Eden called an emergency
meeting of the cabinet and con-
ferred with French and American
diplomats. On Friday. Britain and
France bluntly denounced the
Egyptian action in formal pro-
tests. French Foreign Minister
Christian Pineau also called in the
Egyptian Ambassador for verbal
protest. Egypt rejected both the
protests and the Paris Scolding.
Reds Beck Nosser
After a 24-hour delay, the press
and radio of the Soviet Union began
lauding Col. Nasser for his Suez
seizure, reporting the unfavorable
responses of Washington. London,
Paris and New York in articles of
unusual length There was no
official comment from the Kremlin,
but it was plain that the praise
Of Russia's newspapers and radio
commentaries had the usual Of
fetal sanction.
Strong man NaSser's retaliation
was announced in the course of a
highly emotional speech at Alex
andria. Immediately. Egyptian
Army officers and police sealed off
the Offices of the Suez Canal Co.,
which for 81 years has operated
the vital waterway. Col. Nasser
said the company was dissolved,
and pledged that stockholders would
be compensated "at prevailing
prices on the Cairo stock market"
Those prices took an abrupt tumble
on news of the canal national
ization.
Yesterday Britain froze all Egyp-
tan sterling balances, estimated at
1854 million. and all Suez Canal
Co. assets in the United Kingdom.
France was expected to join in this
economic conference.-the almost
Immediately. And there was strong
talk in Paris Of a military occupa-
ton of the Suez Canal Zone if Brit
ain and presumably the United
States would back the move.
London government sources had
no comment on the possibility of
military action. but Mr.. Eden on
Friday did not rule out such de-
cision in his report to the House of
Commons. The Constantinople
Convention of 1888, which pledged
freedom of navigation of the canal
in peace and war. was cited as JUS
LITIGATION for the dispatch of armed
forces to the Zone.
Col NaSserS action posed an
immediate threat to the continued
movement of Middle East oil
through the canal. Some IL million
barrels of oil pass through the
waterway each day, of which about
100000 barrels are headed for the
United States. Any effective clos
ing of the canal to tankers would
mean an expensive and time-con-
Stunning voyage around Africa.
The seizure set United States
wheels in motion. President Eisen-
hover conferred twice with top
State Department officials (Secre-
tary Dulles is in Lima, Peru on the
Egyptian developments. In addi-
ton, the State Department an
nounced it is consulting urgently
with other governments concerned"
on the Suez crisis.
The Suez Canal Co. is an Egyp-
tan stock company subject to the
operating terms laid down by the
ConStantinople Convention A major
stakeholder is the British govern
ment itself, the result of Disraeli's
purchase of 353,204 shares from the
Khedive Of Egypt in 1875. DiSraeli
saw the canal as 'the lifeline of the
Empire" and even today Britain's
communications with her far-flung
Commonwealth depend on the Suez
link.
London ToIks
Tomorrow Frances Mr.. Pineau
will fly to London to confer with
British Foreign Secretary Selwyn
Lloyd and other officials on formu-
lation of common policy on Suez.
Deputy Undersecretary of State
Robert Murphy will represent the
United States in the talks.
And yesterday the United States
whipped pointed protest to Cairo
on Col. Nasser's unrestrained at
tacks on American policy.
1t was clear. however, that some
concerted action by the Big Three
was in the making. The British
are reported as taking the position
that United States backing is abso-
,lutely essential to any effective
course the West can take.
Meanwhile. in Cairo, the deter
mined Col. Nasser placed the entire
Suez Canal Zone under martial
law, warned all canal employees,
foreign and Egyptian alike, to stay
on the job on pain of imprison-
ment. and threatened to close the
waterway if the West attempts any
interference" with his rationale
cation decree.