(Aug. 26, 1936), treaty signed at Montreux, Switz., in May 1937 that officially brought to an end 54 years of British occupation in Egypt. Nevertheless, Egyptian sovereignty remained circumscribed by the terms of the treaty, which established a 20-year military alliance that allowed Great Britain to impose martial law and censorship in Egypt in the event of international emergency; provided for the stationing of up to 10,000 British troops and 400 Royal Air Force pilots in the Suez Canal Zone until the Egyptians should be capable of protecting the area; and permitted Great Britain to retain its naval base at Alexandria for a maximum of eight years. Further, a British ambassador to Egypt replaced the former high commissioner. After a transitional period, the capitulations (capitulation) were to be abolished, and, with the additional extinction of the mixed courts, foreigners would be subject to Egyptian law.

After the treaty had been signed, the Egyptian government assumed full administrative control over its armed forces and began to admit into the military academy a wider group of Egyptians, which allowed individuals such as future prime minister and president of Egypt Gamal Abdel Nasser (Nasser, Gamal Abdel) to join the officer corps. The treaty was unpopular in Egypt, and it was unilaterally abrogated by the Wafd government in 1951.