After the three-year transition period ended with Nasser's official assumption of power, his domestic and independent foreign policies increasingly collided with the regional interests of the UK and France. The latter condemned his strong support for Algerian independence, and the UK's Eden government was agitated by Nasser's campaign against the Baghdad Pact. In addition, Nasser's adherence to neutralism regarding the Cold War, recognition of communist China, and arms deal with the Eastern bloc alienated the United States. On 19 July 1956, the US and UK abruptly withdrew their offer to finance construction of the Aswan Dam, citing concerns that Egypt's economy would be overwhelmed by the project.