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The Suez Canal was attacked by Anglo-French and Israeli forces in October 1956

England have

Egypt's president, Colonel Gamal Abdel Nasser, has announced the nationalisation of the Suez Canal Company to provide funding for the construction of the Aswan High Dam.

British and French stockholders who own the Suez Canal Company have reacted with shock to the news.

In a two-and-a-half hour speech delivered to a mass gathering in Alexandria, President Nasser said the Nationalisation Law had already been published in the official gazette.

He said all company assets in Egypt had been frozen and stockholders would be paid the price of their shares according to today's closing prices on the Paris Stock Exchange.

Vehement criticism

Twelve Egyptians have been appointed members of a special board which will manage the newly-nationalised company.

The Suez Canal is a key waterway for world trade and an important source of revenue for Britain.

The Suez Canal Company, which manages the waterway, is legally Egyptian but, in 1869 was granted a 99 years' concession.

It was not due torevert tothe Egyptian Government until November 16, 1968.

President Nasser, who took control of Egypt following a Coup d'Etat four years ago, has been implementing a nationalisation programme in the country, and was vehement in his criticism of the West.

He said 120,000 Egyptians had died building the canal but Egypt was receiving just a tiny proportion of the company's ?5,000,000 annual earnings.

President Nasser's decision to nationalise the Suez Canal company comes following Britain and America's withdrawal of financial assistance towards the Aswan Dam.

It is understood the USSR agreed last month to provide an unconditional loan towards the project.

The Labour party could never have expected such a sweeping victory

The landslide victory comes as a major shock to the Conservatives following Winston Churchill's hugely successful term as Britain's war-time coalition leader, during which he mobilised and inspired courage in an entire nation.

Out of 627 seats Labour increased its seats from 164 to 393, giving the party an independent majority of 159 seats over all other parties.

The Conservatives and their allies secured 213 seats, the Liberals 10 and other parties 11.

Following the announcement of the results this afternoon, Mr Churchill, who has held the positions of Prime Minister, First Lord of the Treasury and Minister of Defence continuously since May 10, 1940, went to Buckingham Palace to hand in his resignation.

Mr Attlee, 62, was welcomed by the King shortly afterwards and asked to form a new Government.

Throughout the election campaign Mr Churchill had appealed to the country to give his new National Government - formed after the dissolution of the Coalition government in May - a good majority.

But the appeal was rejected by the people of Britain, largely, it is thought, as revenge for pre-war economic misery suffered by many.

In a statement issued from 10 Downing Street tonight Mr Churchill expressed his "profound gratitude for the unflinching, unswerving support" given to him by the people of Britain during the war years.

The outgoing prime minister had broken off meetings with the leaders of America and Russia in Potsdam on Wednesday (July 25) to return to Britain for the election results.

It was announced tonight that a proclamation giving Japan an ultimatum to surrender had been signed by Mr Churchill before his departure.

The document, also signed by American President Harry Truman and General Chiang Kai-shek of China, called for the unconditional surrender of all Japanese armed forces or the prospect of "prompt and utter destruction."

The new prime minister, Mr Attlee, is expected to return to the three-Power conference in Berlin to resume diplomatic talks soon.

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