On October 12, 1956, Secretary-General Dag Hammarskjold incorporated six principles on which there seemed to be general agreement. These principles were incorporated in a draft resolution which the Security Council unanimously adopted on the next day. This became resolution 118 (1956) by which the Security Council "agrees that any settlement of the Suez question should meet the following requirements:
There should be free and open transit through the Canal without discrimination, overt or covert-this covers both political and technical aspects;
The sovereignty of Egypt should be respected;
The operation of the Canal should be insulated from the politics of any country;
The manner of fixing tolls and charges should be decided by agreement between Egypt and the users;
A fair proportion of the dues should be allotted to development;
In case of disputes, unresolved affairs between the Suez Canal Company and the Egyptian Government should be settled by arbitration with suitable terms of reference and suitable provisions for the payment of sums found to be due."
Following the adoption of this resolution, Hammarskjold announced that he would pursue his efforts to promote an agreement based on the principles laid down by the Security Council. However, a new situation developed in late October 1956, when Israel, in cooperation with the British and French Governments, launched an all-out attack on Egypt.
Source: The Blue Helmets: A Review of United Nations Peacekeeping, Copyright 1990, The United Nations. Published by the United Nations Department of Public Information
