Merkel urges Egypt's Mursi to hold crisis dialogue

CAIRO/BERLIN (Reuters) - German Chancellor Angela Merkel urged Egypt's Islamist president on Wednesday to open a dialogue with all political forces in the crisis-ridden Arab country after a week of violence that has killed more than 50 people.

President Mohamed Mursi flew to Germany to try to convince Europe of his democratic credentials, but in a sign of the political tensions back home, he restricted his trip to a few hours and canceled a planned Paris leg.

"One thing that is important for us is that the line for dialogue is always open to all political forces in Egypt, that the different political forces can make their contribution, that human rights are adhered to in Egypt and that of course religious freedom can be experienced," Merkel told Mursi at a joint news conference.

The Egyptian leader, who has faced months of protests by liberal and youth groups opposed to a new Islamic constitution, replied that dialogue was possible and that Egypt would be a state based on the rule of law, not run by the military.

But he refused to give a commitment sought by the opposition to form a national unity government, saying that would be for the new parliament to decide after elections expected in April.

Two more protesters were shot dead before dawn near Cairo's central Tahrir Square on the seventh day of what has become the deadliest wave of unrest since Mursi took power in June.

The army chief warned on Tuesday that the state was on the brink of collapse if Mursi's opponents and supporters did not end street battles that have marked the two-year anniversary of the revolt that toppled autocrat Hosni Mubarak.

Mursi is due to return to Cairo later in the day.

Near Tahrir Square on Wednesday morning, dozens of protesters threw stones at police who fired back teargas, although the scuffles were brief.

"Our demand is simply that Mursi goes, and leaves the country alone. He is just like Mubarak and his crowd who are now in prison," said Ahmed Mustafa, 28, a youth who had goggles on his head to protect his eyes from teargas.

Opposition politician Mohamed ElBaradei called for a meeting of the president, ministers, the ruling party and the opposition to halt the violence. But he also restated the opposition's precondition that Mursi first commit to seeking a national unity government.

Mursi's critics accuse him of betraying the spirit of the revolution by keeping too much power in his own hands and those of his Muslim Brotherhood, the Islamist movement banned under Mubarak which won repeated elections since the 2011 uprising.

Mursi's supporters say the protesters want to overthrow Egypt's first democratically elected leader. The unrest has prevented a return to stability ahead of parliamentary elections due within months, and worsened an economic crisis that has seen the pound currency tumble in recent weeks.

The worst violence has been in the Suez Canal city of Port Said, where rage was fuelled by death sentences passed against soccer fans for deadly riots last year. Mursi responded by announcing on Sunday a month-long state of emergency and curfew in Port Said and two other Suez Canal cities.

Protesters have ignored the curfew and returned to the streets. Human Rights Watch called for Mursi to lift the decree.

Mursi was keen to allay the West's fears over the future of the most populous Arab country in his meetings with Merkel and powerful industry groups in Berlin.

"DISTURBING IMAGES"

"We have seen worrying images in recent days, images of violence and destruction, and I appeal to both sides to engage in dialogue," German Foreign Minister Guido Westerwelle said in a radio interview on Wednesday ahead of Mursi's arrival.

Germany's "offer to help with Egypt's transformation clearly depends on it sticking to democratic reforms", he added.

Germany has praised Mursi's efforts in mediating a ceasefire between Israel and Palestinians in Gaza after a conflict last year, but became concerned at Mursi's efforts to expand his powers and fast-track a constitution last year.

Berlin was also alarmed by video that emerged in recent weeks showing Mursi making vitriolic remarks against Jews and Zionists in 2010 when he was a senior Brotherhood official. Germany's Nazi past and strong support of Israel make it highly sensitive to anti-Semitism.

Mursi's past anti-Jewish remarks were "unacceptable", Westerwelle said. "But at the same time President Mursi has played a very constructive role mediating in the Gaza conflict."

Asked about those remarks at the news conference with Merkel, Mursi said they had been taken out of context and he was not against the Jewish faith.

Egypt's main liberal and secularist bloc, the National Salvation Front, has so far refused talks with Mursi unless he promises a unity government including opposition figures.

"Stopping the violence is the priority, and starting a serious dialogue requires committing to guarantees demanded by the National Salvation Front, at the forefront of which are a national salvation government and a committee to amend the constitution," ElBaradei said on Twitter.

Those calls have also been backed by the hardline Islamist Nour party - rivals of Mursi's Brotherhood. Nour and the Front were due to meet on Wednesday, signaling an unlikely alliance of Mursi's critics from opposite ends of the political spectrum.

Brotherhood leader Mohamed El-Beltagy dismissed the unity government proposal as a ploy for the Front to take power despite having lost elections. On his Facebook page he ridiculed "the leaders of the Salvation Front, who seem to know more about the people's interests than the people themselves".

German industry leaders see potential in Egypt but are concerned about political instability.

"At the moment many firms are waiting on political developments and are cautious on any big investments," said Hans Heinrich Driftmann, head of Germany's Chamber of Industry and Commerce.

Mursi's supporters blame the opposition for preventing an economic recovery by halting efforts to restore stability. The opposition says an inclusive government is needed to bring calm.

(Additional reporting by Yasmine Saleh and Marwa Awad in Cairo, Stephen Brown and Gernot Heller in Berlin and Arshad Mohammed in Washington; Writing by Peter Graff; Editing by Giles Elgood and Paul Taylor)

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UE plans to launch rival bid for WBL Corp

SINGAPORE: Another corporate fight is brewing as property and engineering group United Engineers plans to launch a rival bid for WBL Corp at S$4 a share.

United Engineers said the company's growth has reached its peak after the property and construction firm raked in record revenue of S$1.19 billion in 2011.

The company is now looking for more recurring income.

To do that, United Engineers said it has to look beyond its home ground in Singapore for inorganic growth.

That is why it has offered to buy the remaining 61.7 per cent of WBL Corp that it does not own for S$687 million in an all-cash offer.

Jackson Yap, group managing director and chief executive officer of United Engineers Limited, said: "In property development, the earnings could be quite lumpy. When you have the project finishing, you have a spike in your earnings. So we are trying to spread it out and have a more recurring income.

"The auto business offers us that opportunity. It is a great business. We have seen quite good growth for them. We think that that is one of our core businesses if we are looking to take over."

United Engineers is eyeing on WBL Corp's business outside Singapore, particularly in China.

These include automotive, property development, technology and engineering.

Jack Wang from Lexico Advisory said there could be lucrative spin-offs if the acquisition is successful.

Mr Wang said: "You are not just buying one company. You are actually buying three segments of the business which I think if anyone is confident of about the fundamentals, you can spin-off some of the business, and you can get lots of value out of it."

United Engineers has the support from WBL Corp's major shareholders which include OCBC Group, Great Eastern, and the Lee Family.

Together they hold 38.3 per cent stake in WBL Corp.

United Engineers said it will fund the acquisition by internal funds and external borrowings.

WBL Corp's shares were halted for trading on Wednesday. Its shares last traded at S$4.20 apiece.

Major shareholder Straits Trading with some 44.6 per cent stake in WBL Corp has not commented on United Engineers' latest offer.

- CNA/fa

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RIM now rebranded to 'BlackBerry'

The new ticker symbols for BlackBerry.

(Credit:
Sarah Tew/CNET)

Research In Motion (RIM) is no more.

At the BlackBerry 10 launch event in New York City today, CEO Thorsten Heins announced that RIM has been retired for simply, BlackBerry. "Our customers use BlackBerrys, our employees work for BlackBerry," Heins said before a packed house.

With its name change comes a change to its ticker symbol. On the NASDAQ, the company has retired RIMM for BBRY.

The move is not so surprising. BlackBerry's customers were largely unaware of what "RIM" meant and what it stood for, and would commonly call the company "BlackBerry."

BlackBerry's Web site is still displaying the "Research In Motion" branding. However, the company is expected to remove all mention of its former name sometime today.

Click here to find out what else BlackBerry is announcing at its event.

This story has been updated throughout the morning.

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Giffords to Senate: 'Americans Are Counting on You'

Former congresswoman Gabrielle Giffords, whose congressional career was ended by a bullet wound to her head, opened a Senate hearing on gun violence today by telling the panel, "Speaking is difficult, but I need to say something important."

She told the Senate to be "courageous" because "Americans are counting on you."

Giffords sat alongside her astronaut husband Mark Kelly as she delivered her emotional statement just over a minute long imploring Congress to act on gun policy.

"This is an important conversation for our children, for our communities, for Democrats, and Republicans," the former Arizona congresswoman said. "Speaking is difficult but I need to say something important: Violence is a big problem too many children are dying. Too many children. We must do something. It will be hard, but the time is now. You must act. Be bold, be courageous, Americans are counting on you. Thank you," Giffords said before being helped out of the hearing room.

Giffords was shot by a gunman in her Arizona district two years ago, and was a last-minute addition to the hearing about the nation's gun laws as lawmakers grapple with how to curb gun violence in the wake of the Sandy Hook Elementary school tragedy that left 20 children and six adults dead late last year.

Today's hearing is a showdown on guns, featuring two powerful but conflicting forces in the gun control movement. Giffords' husband will also testify, as will Wayne LaPierre, the fiery executive vice president and CEO of the National Rifle Association.

They will testify before the Senate Judiciary Committee today in the first congressional hearing on gun violence since the deadly shooting at Sandy Hook Elementary School in Newtown, Conn. last month.

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Giffords has recently launched Americans for Responsible Solutions, an organization promoting the implementation of universal background checks and limits on high capacity magazines.

"Overwhelmingly, you told us that universal background checks and limiting access to high capacity magazines were top priorities, and I'll make sure to address each of those ideas in my opening remarks," Kelly wrote in an email to supporters Tuesday. Kelly asked the group's allies to sign a petition calling on Congress to pass legislation on both issues.

LaPierre, who states the NRA's opposition to universal background checks and urges legislators not to "blame" legal gun owners by enacting new gun control laws.

"Law-abiding gun owners will not accept blame for the acts of violent or deranged criminals. Nor do we believe the government should dictate what we can lawfully own and use to protect our families," LaPierre was to say Wednesday, according to prepared remarks released by the NRA.

"Proposing more gun control laws -- while failing to enforce the thousands we already have -- is not a serious solution to reducing crime," says LaPierre in his prepared text.

In the wake of the Newtown shooting, the NRA advocated placing armed security guards in every school in America, an initiative LaPierre will promote in Wednesday's hearing, arguing that "it's time to throw an immediate blanket of security around our children."

In an interview with ABC News' Diane Sawyer earlier this month, Kelly and Giffords said they hope the Sandy Hook shooting, in which 20 children and seven adults died, will spur legislative action on gun policy.

Today's hearing is the first meeting ever for Kelly and LaPierre, according to an interview Kelly gave to CNN Tuesday. Kelly, who has shot at an NRA practice range with his wife, noted that he is a gun enthusiast but is not a member of the NRA.

"You would think with my background I would be a member of the NRA. I own a gun. I recently bought a hunting rifle a few months ago. I went through a background check. It took I think about 20 minutes. It's a small price to pay to make us safer. We're not going to stop every one of these mass shootings. We're not going to stop every murder with a handgun in our cities, but I think we'd go a long way to reducing the violence and preventing some," Kelly told CNN.

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Army warning: unrest pushing Egypt to brink

CAIRO, Egypt (Reuters) - Egypt's army chief said political strife was pushing the state to the brink of collapse - a stark warning from the institution that ran the country until last year as Cairo's first freely elected leader struggles to contain bloody street violence.

Abdel Fattah al-Sisi, a U.S.-trained general appointed by President Mohamed Mursi last year to head the armed forces, added in a statement on Tuesday that one of the primary goals of deploying troops in cities on the Suez Canal was to protect the waterway that is vital for Egypt's economy and world trade.

Sisi's comments, published on an official army Facebook page, followed 52 deaths in the past week of disorder and highlighted the mounting sense of crisis facing Egypt and its Islamist head of state who is struggling to fix a teetering economy and needs to prepare Egypt for a parliamentary election in a few months that is meant to cement the new democracy.

Violence largely subsided on Tuesday, although some youths again hurled rocks at police lines in Cairo near Tahrir Square.

It seemed unlikely that Sisi was signaling the army wants to take back the power it held for six decades since the end of the colonial era and through an interim period after the overthrow of former air force chief Hosni Mubarak two years ago.

But it did send a powerful message that Egypt's biggest institution, with a huge economic as well as security role and a recipient of massive direct U.S. subsidies, is worried about the fate of the nation, after five days of turmoil in major cities.

"The continuation of the struggle of the different political forces ... over the management of state affairs could lead to the collapse of the state," said General Sisi, who is also defense minister in the government Mursi appointed.

He said the economic, political and social challenges facing the country represented "a real threat to the security of Egypt and the cohesiveness of the Egyptian state" and the army would remain "the solid and cohesive block" on which the state rests.

Sisi was picked by Mursi after the army handed over power to the new president in June once Mursi had sacked Field Marshal Hussein Tantawi, in charge of Egypt during the transition and who had also been Mubarak's defense minister for 20 years.

DEEPLY POLARISED

The 58-year-old previously headed military intelligence and studied at the U.S. Army War College. Diplomats say he is well known to the United States, which donates $1.3 billion in military aid each year, helping reassure Washington that the last year's changes in the top brass would not upset ties.

One of Sisi's closest and longest serving associates, General Mohamed el-Assar, an assistant defense minister, is now in charge of the military's relations with the United States.

Almost seven months after Mursi took office, Egyptian politics have become even more deeply polarized.

Opponents spurned a call by Mursi for talks on Monday to try to end the violence. Instead, protesters have rallied in Cairo and Alexandria, and in the three Suez Canal cities - Port Said, Ismailia and Suez - where Mursi imposed emergency rule.

On Tuesday, thousands were again on the streets of Port Said to mourn the deaths of two people in the latest clashes there, taking the total toll in Mediterranean port alone to 42 people. Most were killed by gunshots in a city where weapons are rife.

Mohamed Ezz, a Port Said resident speaking by telephone, heard heavy gunfire through the night. "Gunshots damaged the balcony of my flat, so I went to stay with my brother," he said.

Residents in the three canal cities had taken to the streets in protest at a nightly curfew now in place there. The president's spokesman said on Tuesday that the 30-day state of emergency could be shortened, depending on circumstances.

In Cairo on Tuesday afternoon, police again fired teargas as stone-throwing youths in a street near Tahrir Square, the centre of the 2011 uprising. But the clashes were less intense than previous days and traffic was able to cross the area. Street cleaners swept up the remains of burnt tires and other debris.

Street flare-ups are a common occurrence in divided Egypt, frustrating many people desperate for order and economic growth.

Although the general's comments were notably blunt, Egypt's military has voiced similar concerns in the past, pledging to protect the nation. But it has refused to be drawn back into a direct political role after its reputation as a neutral party took a pounding during the 17 months after Mubarak fell.

WARY MILITARY

"Egyptians are really alarmed by what is going on," said Cairo-based analyst Elijah Zarwan, adding that the army was reflecting that broader concern among the wider public.

"But I don't think it should be taken as a sign that the military is on the verge of stepping in and taking back the reins of government," he said.

In December, Sisi offered to host a national dialogue when Mursi and the rivals were again at loggerheads and the streets were aflame. But the invitation was swiftly withdrawn before the meeting went ahead, apparently because the army was wary of becoming embroiled again in Egypt's polarized politics.

Protests initially flared during the second anniversary of the uprising which erupted on January 25, 2011 and toppled Mubarak 18 days later. They were exacerbated in Port Said when residents were angered after a court sentenced to death several people from the city over deadly soccer violence.

Since the 2011 revolt, Islamists who Mubarak spent his 30-year rule suppressing have won two referendums, two parliamentary elections and a presidential vote.

But that legitimacy has been challenged by an opposition that accuses Mursi of imposing a new form of authoritarianism. Mursi's supporters says protesters want to overthrow Egypt's first ever democratically elected leader by undemocratic means.

The army has already been deployed in Port Said and Suez and the government agreed a measure to let soldiers arrest civilians as part of the state of emergency. Sisi reiterated that the army's role would be support the police in restoring order.

The instability has provoked unease in Western capitals, where officials worry about the direction of a powerful regional player that has a peace deal with Israel. The United States condemned the bloodshed and called on Egyptian leaders to make clear violence was not acceptable.

Mursi's invitation to rivals to a national dialogue with Islamists on Monday was spurned by the main opposition National Salvation Front coalition, which described it as "cosmetic".

The only liberal politician who attended, Ayman Nour, told Egypt's al-Hayat channel after the meeting ended late on Monday that attendees agreed to meet again in a week.

He said Mursi had promised to look at changes to the constitution requested by the opposition but did not consider the opposition's request for a government of national unity. Mursi's pushing through last month of a new constitution which critics see as too Islamic remains a bone of contention.

(Additional reporting by Yasmine Saleh and Omar Fahmy in Cairo, Yusri Mohamed in Ismailia and Abdelrahman Youssef in Alexandria; Writing by Edmund Blair; Editing by Alastair Macdonald)

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US Senate committee approves Kerry nomination

 

WASHINGTON: Senator John Kerry easily cleared the first hurdle of his confirmation as the next secretary of state Tuesday with a unanimous vote of approval by the Senate Foreign Relations Committee.

Kerry, President Barack Obama's pick to replace Hillary Clinton as the nation's top diplomat, must still be confirmed by a vote of the full Senate later in the day, but that was expected to be a shoo in.

His colleagues on the Senate Foreign Relations Committee, which Kerry chairs, gave him a unanimous vote of approval, with Republicans joining Democrats.

Kerry, who did not vote, said he was "humbled" and gratified.

"They've been wonderful, they've been really superb," he said of his colleagues on the committee, adding, "I'm very wistful about it, it's not easy" leaving.

- AFP/fa

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Verizon clears Jetpack 4G mobile hotspot for take off

Need a way to surf almost anywhere without relying on sketchy public Wi-Fi? Verizon sure thinks you do and hopes to entice subscribers with a new Jetpack mobile hotspot.

Called the Jetpack 4G LTE Mobile Hotspot MiFi 510L and made by Novatel, this gadget ships January 31 for $19.99 and continues the carrier's line of portable 4G sharing products. The hockey puck shaped 510L can spread its 4G LTE data connection to up to 10 mobile devices such as smartphone,
tablets, and laptops via wireless Wi-Fi connection.

With the largest LTE data network roll out in the U.S., the chance to link to Verizon's 4G infrastructure while on the go is a tempting prospect. Of course you will have to beef up your monthly data plan to include multiple devices which will add up quickly, as high as $180 per month. I suggest you choose your plan wisely.

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Report: A-Rod, Cruz, Gonzalez linked to PED probe

New York Yankees' $275 million man Alex Rodriguez, Washington Nationals All-Star Gio Gonzalez and Texas Rangers slugger Nelson Cruz are among the players connected to performance-enhancing drugs in a new investigative report by the Miami New Times.

A former employee of a South Florida clinic called Biogenesis gave the Miami New Times "an extraordinary batch of records" showing athletes received various substances from Anthony Bosch, the clinic's chief who is already under investigation by Major League Baseball and the Drug Enforcement Administration, as CBSSports.com reported. At least one boxer, one tennis player and a coach were also implicated.

The report outlines "damning evidence" against A-Rod as his name appears in Biogenesis records up until 2012. Rodriguez, who finally admitted to taking PEDs in 2009, claims he has been clean for a decade. An excerpt of the report on A-Rod reads:

There, at number seven on the list, is Alex Rodriguez. He paid $3,500, Bosch notes. Below that, he writes, "1.5/1.5 HGH (sports perf.) creams test., glut., MIC, supplement, sports perf. Diet." HGH, of course, is banned in baseball, as are testosterone creams...."

The mentions of Rodriguez begin in 2009 and continue all the way through last season. Take a page in another notebook, which is labeled "2012" and looks to have been written last spring. Under the heading "A-Rod/Cacique," Bosch writes, "He is paid through April 30th. He will owe May 1 $4,000... I need to see him between April 13-19, deliver troches, pink cream, and... May meds. Has three weeks of Sub-Q (as of April).

27 Photos

MLB players banned for positive drug tests

Other names linked to Biogenesis in the report include outfielder Melky Cabrera, pitcher Bartolo Colon and catcher Yasmani Grandal - all of whom were suspended last season under MLB's ban on performance-enhancing drugs.

Writes Tim Elfrink, the author of the Miami New Times report: "As baseball teams head to spring training under a tougher new policy, the Biogenesis records affirm that the war on doping has been as futile as the War on Drugs."

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Obama's Immigration Plan to Have More Direct Path

President Barack Obama is expected to lay out his principles for immigration reform in a speech in Las Vegas today that will include a potentially quicker path to citizenship than the bipartisan plan a group of senators unveiled earlier this week.

The president will offer some new details about the White House's immigration reform plan, which expands on a blueprint it released in 2011, a senior administration official told ABC News. But for now Obama will stop short of offering his own piece of legislation because of the progress made by the Senate "Gang of Eight."

See Also: Senate Wants Immigration Bill Passed in Months

The White House has sounded positive notes about the Senate group's plan thus far, but the specifics that Obama announces are expected to have some key differences that might cause concern for some Republican senators who have signed onto the senate deal.

Like the senators' plan, Obama's proposal calls for a pathway to citizenship for many of the 11 million undocumented immigrants living in the U.S. The senators' plan would grant "probationary legal status" immediately to eligible undocumented immigrants, but would not allow them to apply for permanent legal status, or a green card, until the border is deemed to be secure. Think of that as a trigger system.

On the other hand, Obama's framework would not contain a border security measure. Administration officials told media outlets that they believe a path to citizenship needs to be straightforward. They also believe a trigger system, like the one in the senate plan, could lead to a state of legal limbo for the undocumented immigrants who receive legal status, The Washington Post reported.

The border-security-first plan, however, is essential to Republican senators who signed onto the Senate "Gang of Eight" deal.

"I will not be supporting any law that does not ensure that the enforcement things happen," Sen. Marco Rubio (R-Fla.), a member of the group, told conservative blogger Ed Morrissey on his web radio show.

See Also: 3 Flashpoints in the Senate Immigration Blueprint

Obama's plan is likely to include language that would allow same-sex bi-national couples to have the same rights as heterosexual couples, BuzzFeed and The Washington Post reported. Under current law, gays and lesbians who are married to U.S. citizens under state laws cannot obtain a green card. Obama's plan would allow them a path to citizenship, but the issue is not mentioned in the Senate "Gang of Eight" proposal.

As noted by the Post, that language may anger Christian groups who have signaled they would support comprehensive immigration reform.

But the White House remains optimistic about the progress that has been made so far. An official described the senators' announcement as a "breakthrough" to ABC News because it wasn't clear whether Republicans would sign on to any path to citizenship.

Some observers couched the Senate group's decision to come out with his plan a day before Obama as an attempt to outfox the White House politically. But administration officials told media outlets they remain generally pleased with the plan and believe that the president's speech could build momentum for a final bill.

ABC's Reena Ninan contributed reporting.

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Violence flares in Egypt after emergency law imposed

CAIRO (Reuters) - A man was shot dead on Monday in a fifth day of violence in Egypt that has killed 50 people and prompted the Islamist president to declare a state of emergency in an attempt to end a wave of unrest sweeping the Arab world's biggest nation.

Emergency rule announced by President Mohamed Mursi on Sunday covers the cities of Port Said, Ismailia and Suez. The army has already been deployed in two of those cities and cabinet approved a measure to let soldiers arrest civilians.

A cabinet source told Reuters any trials would be before civilian courts, but the step is likely to anger protesters who accuse Mursi of using high-handed security tactics of the kind they fought against to oust President Hosni Mubarak.

Egypt's politics have become deeply polarized since those heady days two years ago, when protesters were making most of the running in the Arab Spring revolutions that sent shockwaves through the region and Islamists and liberals lined up together.

Although Islamists have won parliamentary and presidential elections, the disparate opposition has since united against Mursi. Late last year he moved to expand his powers and push a constitution with Islamist leanings through a referendum, punctuated by violent street protests.

Mursi's call for a national dialogue meeting on Monday to help end the crisis was spurned by his main opponents.

They accuse Mursi of hijacking the revolution, listening only to his Islamist allies and breaking a promise to be a president for all Egyptians. Islamists say their rivals want to overthrow by undemocratic means Egypt's first freely elected leader.

Anti-Mursi protesters were out on the streets again in Cairo and elsewhere on Monday, the second anniversary of one of the bloodiest days in the revolution that erupted on January 25, 2011, and ended Mubarak's iron rule 18 days later.

CONCERNS

Hundreds of demonstrators in Port Said, Ismailia and Suez, cities which all lie on the economically vital Suez Canal, had turned out against Mursi's decision on Sunday within moments of him speaking. Activists there pledged to defy a curfew that starts at 9 p.m. (1700 GMT).

Instability in Egypt has raised concerns in Western capitals, where officials worry about the direction of a key regional player that has a peace deal with Israel.

The political unrest has been exacerbated by street violence linked to death penalties imposed on soccer supporters convicted of involvement in stadium rioting a year ago.

In Cairo on Monday, police fired volleys of teargas at stone-throwing protesters near Tahrir Square, cauldron of the anti-Mubarak uprising. A 46-year-old bystander was killed by a gunshot, a security source said. It was not clear who opened fire.

"We want to bring down the regime and end the state that is run by the Muslim Brotherhood," said Ibrahim Eissa, a 26-year-old cook, protecting his face from teargas wafting towards him.

Propelled to the presidency in a June election by the Muslim Brotherhood, Mursi has lurched through a series of political crises and violent demonstrations, complicating his task of shoring up the economy and of preparing for a parliamentary election to cement the new democracy in a few months.

"The protection of the nation is the responsibility of everyone. We will confront any threat to its security with force and firmness within the remit of the law," Mursi said, angering many of his opponents when he wagged his finger at the camera.

The president offered condolences to families of victims of violence and also called a dialogue meeting on Monday at 6 p.m. (11 a.m. ET) between Islamist allies and their liberal, leftist and other opponents to discuss the crisis.

The main opposition National Salvation Front coalition rejected the offer as "cosmetic and not substantive" and set several conditions that have not been met in the past, such as forming a national salvation government. They also demanded that Mursi announce his responsibility for the bloodshed.

SECURITY MEASURES

"We will send a message to the Egyptian people and the president of the republic about what we think are the essentials for dialogue. If he agrees to them, we are ready for dialogue," opposition politician Mohamed ElBaradei told a news conference.

The opposition Front has distanced itself from the latest flare-ups but said Mursi should have acted far sooner to impose security measures that would have ended the violence.

"Of course we feel the president is missing the real problem on the ground, which is his own policies," Front spokesman Khaled Dawoud said after Mursi made his declaration.

Other activists said Mursi's measures to try to impose control on the turbulent streets could backfire.

"Martial law, state of emergency and army arrests of civilians are not a solution to the crisis," Ahmed Maher of the April 6 movement that helped galvanize the 2011 uprising said. "All this will do is further provoke the youth. The solution has to be a political one that addresses the roots of the problem."

Thousands of mourners joined funerals in Port Said for the latest victims in the Mediterranean port city. Seven people were killed there on Sunday when residents joined marches to bury 33 others who had been killed a day earlier, most by gunshot wounds in a city where arms are rife.

Protests erupted there on Saturday after a court sentenced to death several people from the city for their role in deadly soccer violence last year, a verdict residents saw as unfair. The anger swiftly turned against Mursi and his government.

Rights activists said Mursi's declaration was a backward step for Egypt, which was under emergency law for Mubarak's entire 30-year rule. His police used the sweeping arrest provisions to muzzle dissent and round up opponents, including members of the Brotherhood and even Mursi himself.

Heba Morayef of Human Rights Watch in Cairo said the police, still hated by many Egyptians for their heavy-handed tactics under Mubarak, would once again have the right to arrest people "purely because they look suspicious", undermining efforts to create a more efficient and respected police force.

"It is a classic knee-jerk reaction to think the emergency law will help bring security," she said. "It gives so much discretion to the Ministry of Interior that it ends up causing more abuse, which in turn causes more anger."

(Additional reporting by Yasmine Saleh in Cairo and Yusri Mohamed in Ismailia; Editing by Giles Elgood and Peter Millership)

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