Soon after the draft decrees for unilateral denouncement of the Treaty of 1936 and Condominium Agreements were introduced in the Egyptian Parliament, the British Government sent fresh proposals to the Government of Egypt. However, these proposals were promptly rejected on the ground that they were embodiments of antiquated imperialistic approach and completely ignored Egypt’s requirements.
Simultaneously, Four Power (USA, Britain, France and Turkey) proposals were also sent to Egypt inviting her to join the proposed Middle East Command. Britain indicated her intention to waive the 1936 Treaty if Egypt accepted the offer. Egypt did not pay heed to these proposals.
Finding that no scope for negotiated settlement was left, the Egyptian Parliament approved the proposals denouncing the 1936 Anglo-Egyptian Treaty and the Sudan Condominium Agreements of 1899 by an overwhelming majority.
The Parliament also agreed to an amendment in the constitution to defence the Constitutional status of Sudan and changed the title of King Frauk as King of Egypt and Sudan.
The British Government promptly reacted and announced that it had no intension of recognizing the Egyptian action because the treaty contained no provision for unilateral denunciation.
It issued a warning that Egyptians Government would be responsible for breach of peace and damage to the life or property which may be caused due to abrogation of these instruments. Britain also indicated her intension of maintaining her position in the Canal Zone under the terms of 1936 Treaty and to safeguard the international highway.
She asserted that nothing can be allowed to interfere with the right of the Sudanese to decide for themselves the future status of their country. For the defence of her position in Egypt and Sudan. Britain reinforced the troops in the Canal Zone by bringing paratroopers.
In view of the actions of Britain, the extremist organizations in Egypt became active and made a bid to push out British. However, the British acted firmly and captured all public utilities and key communication posts in the Canal Zone in public interest.
They also imposed a ban on the entry of Egyptian troops in the Canal Zone except for those in transit to and from the Gaza area in southern Palestine. This was a clear demonstration to the Egyptians that the presence of the British troops constituted a limitation on their rightful legal position.