The incidents of Cario was interpreted as a failure of the government to perform duties properly. Therefore, King Faruk dismissed Nahas Pasha and invited Ali Maher to form the government.
Ali Maher after restoring order in public life showed readiness to hold discussions with the four powers on the question of defence of Middle East. He also ordered the withdrawal of all National Liberation Squads from the Canal Zone and restored other facilities to the British troops.
The British Commanding Officer also withdrew restrictions on civilian movement in the canal zone and release many Egyptian who had been taken into custody. In view of these changed conditions, it was hoped that talks would be renewed between the two governments.
The prospects for agreement with the British, which seemed to be quite bright for some time, subsided all at once following resignation of Ali Maher from Premiership on account of his differences with the King.
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Ali Maher’s successor (Ahmed Neguibos Hilali) failed to retain the unity among the political parties which Maher had succeeded in achieving, and therefore, he lost grip over the situation.
The punitive actions taken by Hilali against the national leaders who had participated in the national agitation, rendered him unpopular with the people. As a result f ilali had to deal with the British from a comparatively weak position. Despite this he continued the process of negotiations.
All of a sudden certain legal and political complications creeped into the talks due to developments in Sudan. On 2 April 1952, the Sudanese administration presented to the Legislative Assembly a draft statue of self- government, which provided for immediate election of the legislature and formation of an all Sudanese Government.
The new constitution was however, subject to the approval of Egypt and Great Britain. Egypt felt greatly annoyed with these developments and saw it as a clever move on the part of the British to separate the southern region from the north of the Nile Valley. Egypt argued that there was no point in pursuing talks on Sudan when the Sudan administration was proceeding with an anti-Egyptian policy.
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Though Neguibel Hilali had made every possible bid to make compromise with the British he was not prepared to modify Egypt’s stand on Sudan and consequently tendered his resignation on 28 June 1952.
After Hilali’s resignation the country witnessed political instability till a new revolutionary Janata of young army officers led by Colonel Nasser and General Neguib, came to the helm of affairs, in July 1952. They forced King Faruk to abdicate the throne and exiled him. After Faruk’s exit monarchy was retained for about a year and then a Republic was established.