Soon after assuming office as Prime Minister Zaghlul Pasha raised the issue of the presence of British troops in Egypt. He asserted that their presence was incompatible with the Egyptian independence. He also insisted on Sudan being treated as integral part of Egypt.
New hopes were raised in Egypt with the formation of the Labour Government under Ramsay MacDonald in English in 1924. Therefore, Zaghlul Pasha paid a visit to London to discuss country’s outstanding problems with the British Prime Minister.
However, Raipsay MacDonald the British Minister, firmly turned down the demand of Zaghlul Pasha regarding Sudan and asserted that no arrangement could be contemplated which would jeopardize the administration and development of Sudan.
This stand for the British Government on Sudan greatly infuriated the Egyptian and they started strong anti-British agitation.
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The decision of the British government to direct more of river Nile water for the irrigation of British-owned cotton fields in Gazira added fuel to the fire and committed in the murder of Sir Lee Stack, the Commander-in-Chief of Egyptian army and Governor-General of Sudan on 19 November, 1924.
The British High Commissioner acted with vindictiveness and served the Egyptians with an ultimatum containing following demands:
(i) apology for the crime;
(ii) inquiry into the crime with utmost energy and punishment of the culprits irrespective of status;
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(iii) suspension of all political demonstrations;
(iv) payment of an indemnity of $ 500,000;
(v) withdrawal of all Egyptian forces from Sudan within 24 hours; and
(iv) notification to the competent department that Great Britain reserved the right to increase the area for irrigation at Gazira from 300,000 acres to an unlimited figure.
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As compliance with the terms of the ultimatum would have constituted a clear violation of Egypt’s sovereignty and direct interference in her domestic affairs, Zaghlul Pasha refused to accept all the demands.
Thereupon the High Commissioner ordered the occupation of Alexandria Customs by the British troops and issued instruction to the Sudan Government to carry out the conversion, the Sudanese units of Egyptian army into a separate defence force. Under the changed conditions Zaghlul Pasha tendered his resignation on 24 November, 1924.
In March 1925 when the new Parliament met Zaghlul Pasha was elected as the President of the Chamber of the Deputies. However, (his was not acceptable to the King as well as British authorities. Therefore, the Parliament was dissolved. Thereafter, King Fuad made a bid to change the constitution but failed due to popular opposition.
Zaghlul Pasha won another thumping victory in the elections held in May, 1926, but the British Government objected to his appointment as Prime Minister and invited Adoli to head the government. In the meanwhile it also made a bid to come to some sort of agreement with Zaghlul Pasha. While the negotiation were in progress Pasha died in 1927 and the negotiations suffered a setback.