Edited in a response to your counter-essay to my last post on the Capto Iugulum thread. I would suggest that we let that be the end of the IC correspondence there (we have an essay, response, and counter-response which provides a good cross-section of the academic debate)
No, the plan was for Italy to recognize they had lost Egypt, period. In exchange for that Germany and Brazil would make a number of other lesser diplomatic agreements that would make the embargo obsolete. Then the world could be settled and peaceful without all this upheaval.