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The work had barely commenced when, through the instigation of the English Embassador, the Sultan issued an order arresting the operations. The plea assigned for this interference was that the authority of the Viceroy was insufficient without the sanction of the Sultan. De Lesseps invoked the interposition of the Emperor, who, with apparent indifference, was watching the proceedings from his retreat at Biarritz.

Within a month after the presentation of the memorial the misunderstanding between the two cabinets had been explained, and Lord Palmerston was for a time silenced by the consent of Egypt to receive a Turkish garrison. This acquiescence was in appearance only, as the real object of these repeated assaults was to arrest the work. The Viceroy, desirous of silencing all opposition, consulted French jurisconsults in regard to the rights of the company, and definitely settled the powers of the contracting parties.

For a moderate sum he ceded to the company the belt of country bordering the fresh water canal. Immediately the cry was raised by the opponents of the canal, that it was intended to colonize this region with Europeans.