Wal-Mart lobbying creates storm, company denies illegality

NEW DELHI: The issue of Wal-Mart lobbying today led to a political storm with opposition creating pandemonium in the Rajya Sabha and promising to create further trouble on Tuesday by pressing its demand for a probe and a statement by Prime Minister Manmohan Singh.

BJP, CPM, CPI, SP, JD(U), Trinamool Congress, AGP and AIADMK used the issue to target the government over its decision to allow 51% FDI in retail.

These parties created ruckus in the Rajya Sabha soon after the Question Hour, alleging that the US giant had indulged in corruption to enter Indian market. The uproar led to three adjournments till 2 PM when the House was adjourned finally for the day.

Though the issue did not figure in the Lok Sabha today, the Opposition has decided to rake it up there tomorrow.

"It is a very serious issue. It has been raised in Rajya Sabha today. We propose to raise it in Lok Sabha tomorrow," senior BJP leader Yashwant Sinha told reporters.

When pointed out that lobbying is not illegal in the US, the former external affairs minister said, "I know it is allowed in the US. But the laws of the two countries are different. Lobbying in the US does not mean corruption but in India, it does. That is the difference. There is illegality."

Earlier, Ravishankar Prasad (BJP) raised the issue in the Rajya Sabha during the Zero Hour. He said apprehensions were raised earlier also about Wal-Mart spending huge money to lobby for entering the Indian market and that it has now been proved true. He was supported by members of other opposition parties.

Bharti Wal-Mart issued a statement, saying the opposition allegations of corruption are "entirely false". It said the amount mentioned in its disclosure is a "compilation of expenses associated with staff, association dues, consultants and contributions spent in the US."

The Wal-Mart lobbying issue brought back into focus the decision on FDI with Opposition uniting even as motions brought by it got defeated in both Houses last week with government securing numbers with the help of BSP and SP.

Prasad said that Wal-Mart has in its lobbying disclosure report to the US Senate said it has spent Rs 125 crore on lobbying and $ 3 million have been spent in 2012 itself for entering the Indian market.

"Lobbying is illegal in India. Lobbying is a kind of bribe. If Wal-Mart has said that hundreds of crores of rupees were spent in India, then it is a kind of bribe. Government should tell who was given this bribe. This raises a question mark on the implementation of FDI in retail," he said.

The BJP leader was supported by TMC leader D Bandopadhyay who waved a newspaper report and CPM member P Rajeeve who demanded an "independent inquiry" into the whole episode alleging that there are some reports saying Wal-Mart invested money even before Fema was amended.

"This is bribery," he said as the Opposition members shouted slogans in favour of withdrawing FDI.

Amid din, SP members trooped into the Well shouting slogans against the government's move to bring reservation in promotion for SCs/STs. Government has listed the Constitution (117th Amendment) Bill, 2012 for this purpose in the House.

Earlier, minister of state for parliamentary affairs Rajiv Shukla assured the members that he would bring the matter to the notice of the minister concerned. This was, however, rejected by the opposition which insisted on a response from the Prime Minister.

T Siva (DMK) was also on his feet. Minister of state in PMO V Narayanasamy was heard saying "what more they (the Opposition) want, when he (Shukla) has said that he will bring it to the notice of the minister concerned". While BSP members kept seated, those from SP were on their feet joining the issue with BJP and Left.

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Smokers celebrate as Wash. legalizes marijuana

SEATTLE (AP) — The crowds of happy people lighting joints under Seattle's Space Needle early Thursday morning with nary a police officer in sight bespoke the new reality: Marijuana is legal under Washington state law.

Hundreds gathered at Seattle Center for a New Year's Eve-style countdown to 12 a.m., when the legalization measure passed by voters last month took effect. When the clock struck, they cheered and sparked up in unison.

A few dozen people gathered on a sidewalk outside the north Seattle headquarters of the annual Hempfest celebration and did the same, offering joints to reporters and blowing smoke into television news cameras.

"I feel like a kid in a candy store!" shouted Hempfest volunteer Darby Hageman. "It's all becoming real now!"

Washington and Colorado became the first states to vote to decriminalize and regulate the possession of an ounce or less of marijuana by adults over 21. Both measures call for setting up state licensing schemes for pot growers, processors and retail stores. Colorado's law is set to take effect by Jan. 5.

Technically, Washington's new marijuana law still forbids smoking pot in public, which remains punishable by a fine, like drinking in public. But pot fans wanted a party, and Seattle police weren't about to write them any tickets.

In another sweeping change for Washington, Gov. Chris Gregoire on Wednesday signed into law a measure that legalizes same-sex marriage. The state joins several others that allow gay and lesbian couples to wed.

The mood was festive in Seattle as dozens of gay and lesbian couples got in line to pick up marriage licenses at the King County auditor's office early Thursday.

King County and Thurston County announced they would open their auditors' offices shortly after midnight Wednesday to accommodate those who wanted to be among the first to get their licenses.

Kelly Middleton and her partner Amanda Dollente got in line at 4 p.m. Wednesday.

Hours later, as the line grew, volunteers distributed roses and a group of men and women serenaded the waiting line to the tune of "Chapel of Love."

Because the state has a three-day waiting period, the earliest that weddings can take place is Sunday.

In dealing with marijuana, the Seattle Police Department told its 1,300 officers on Wednesday, just before legalization took hold, that until further notice they shall not issue citations for public marijuana use.

Officers will be advising people not to smoke in public, police spokesman Jonah Spangenthal-Lee wrote on the SPD Blotter. "The police department believes that, under state law, you may responsibly get baked, order some pizzas and enjoy a 'Lord of the Rings' marathon in the privacy of your own home, if you want to."

He offered a catchy new directive referring to the film "The Big Lebowski," popular with many marijuana fans: "The Dude abides, and says 'take it inside!'"

"This is a big day because all our lives we've been living under the iron curtain of prohibition," said Hempfest director Vivian McPeak. "The whole world sees that prohibition just took a body blow."

Washington's new law decriminalizes possession of up to an ounce for those over 21, but for now selling marijuana remains illegal. I-502 gives the state a year to come up with a system of state-licensed growers, processors and retail stores, with the marijuana taxed 25 percent at each stage. Analysts have estimated that a legal pot market could bring Washington hundreds of millions of dollars a year in new tax revenue for schools, health care and basic government functions.

But marijuana remains illegal under federal law. That means federal agents can still arrest people for it, and it's banned from federal properties, including military bases and national parks.

The Justice Department has not said whether it will sue to try to block the regulatory schemes in Washington and Colorado from taking effect.

"The department's responsibility to enforce the Controlled Substances Act remains unchanged," said a statement issued Wednesday by the Seattle U.S. attorney's office. "Neither states nor the executive branch can nullify a statute passed by Congress."

The legal question is whether the establishment of a regulated marijuana market would "frustrate the purpose" of the federal pot prohibition, and many constitutional law scholars say it very likely would.

That leaves the political question of whether the administration wants to try to block the regulatory system, even though it would remain legal to possess up to an ounce of marijuana.

Alison Holcomb is the drug policy director of the American Civil Liberties Union of Washington and served as the campaign manager for New Approach Washington, which led the legalization drive. She said the voters clearly showed they're done with marijuana prohibition.

"New Approach Washington sponsors and the ACLU look forward to working with state and federal officials and to ensure the law is fully and fairly implemented," she said.

___

Johnson can be reached at https://twitter.com/GeneAPseattle

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Colorado Springs Doctor Rescued from Taliban

Dec 9, 2012 6:34am

ABC

The American doctor rescued from the Taliban in Afghanistan Saturday by U.S. Special Operations Forces is the medical adviser for a Colorado Springs NGO, his employer confirmed today.

Dr. Dilip Joseph and two colleagues were kidnapped by a group of armed men while returning from a visit to a rural medical clinic in eastern Kabul Province, according to a statement from their employer, Colorado Springs-based Morning Star Development. The statement said the three were eventually taken to a mountainous area about 50 miles from the border with Pakistan.

Morning Star’s crisis management team in Colorado Springs was in contact with the hostages and their captors almost immediately, the statement said.

On Saturday evening in Afghanistan, two of the three hostages were released. Morning Star did not release their names in order to protect their identities. Dr. Joseph remained in captivity.

Gen. John R. Allen, the commander of U.S. forces in Afghanistan, ordered the mission to rescue Joseph when “intelligence showed that Joseph was in imminent danger of injury or death”, according to a military press release.

Morning Star said Joseph was in good condition and will probably return home to Colorado Springs in the next few days.

A Defense Department official told ABC’s Luis Martinez that Joseph can walk, but was beaten up by his captors.

Joseph has worked for Morning Star Development for three years, the organization said, and travels frequently to Afghanistan.

“Morning Star Development does state categorically that we paid no ransom, money or other consideration to the captors or anyone else to secure the release of these hostages,” the organization said.

Joseph can be seen here in a Morning Star Development video:

“Due to security concerns, some cannot be named but their help will never be forgotten. Among these who cannot be named we include all of the courageous members of the U.S. military who successfully rescued Mr. Joseph as they risked their own lives doing so,” the statement said.

SHOWS: World News

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Egypt's Mursi scraps decree, fails to appease opponents

CAIRO (Reuters) - Egypt's president scrapped a decree that gave him extra powers and ignited violent protests, but irate opponents said on Sunday he had deepened the conflict by pressing on with a vote on a constitution shaped by Islamists.

President Mohamed Mursi and his Islamist partisans have insisted the referendum go ahead on December 15 to seal a democratic transition that began when a popular uprising felled Hosni Mubarak 22 months ago after three decades of one-man rule.

The retraction of Mursi's November 22 decree, announced around midnight after a "national dialogue" boycotted by almost all the president's opponents, has failed to calm a war of words.

Prime Minister Hisham Kandil, a technocrat with Islamist leanings, said the referendum was the best test of opinion.

"The people are the makers of the future as long as they have the freedom to resort to the ballot box in a democratic, free and fair vote," he said in a cabinet statement.

But opposition factions, uncertain of their ability to vote down the constitution against the Islamists' organizational muscle, want the document redrafted before any vote.

Ahmed Said, a liberal leader of the main opposition National Salvation Front, said Mursi's withdrawal of his November 22 decree had not annulled its consequences, describing the race to a referendum as "shocking" and an "act of war" against Egyptians.

The Front has promised a formal response later on Sunday.

Egypt tipped into turmoil after Mursi grabbed powers to stop any court action to hinder the transition. An assembly led by Mursi's Muslim Brotherhood and other Islamists then swiftly approved the constitution it had spent six months drafting.

Liberals, leftists, Christians and others had already quit the assembly in dismay, saying their voices were being ignored.

The April 6 movement, prominent in the anti-Mubarak revolt, derided the result of Saturday's talks as "manipulation and a continuation of deception in the name of law and legitimacy".

A leftist group led by defeated presidential candidate Hamdeen Sabahy demanded the referendum be deferred until a consensus could be reached on a new draft, saying there could be "no dialogue while blood is being spilled in the streets".

But Muslim Brotherhood spokesman Mahmoud Ghozlan said scrapping Mursi's decree had removed any cause for controversy.

"We ask others to announce their acceptance of the referendum result," he said on the group's Facebook page, asking whether the opposition would accept "the basics of democracy".

"NOT LOGICAL"

More protests were planned near Mursi's palace, despite tanks, barbed wire and other barriers installed last week after clashes between Islamists and their rivals killed seven people.

"A constitution without consensus can't go to a referendum," said Hermes Fawzi, 28, a protester outside the palace. "It's not logical that just one part of society makes the constitution."

After the dialogue hosted by Mursi, a spokesman announced that the president had issued a new decree whose first article "cancels the constitutional declaration" of November 22. He said the referendum could not be delayed for legal reasons.

Egypt is torn between Islamists, who were suppressed for decades, and their rivals, who fear religious conservatives want to squeeze out other voices and restrict social freedoms. Many Egyptians just crave stability and economic recovery.

Each side has mobilized tens of thousands of supporters in rival rallies in Cairo and other cities. Mursi's foes have chanted for his downfall. Islamists fear a plot to oust the most populous Arab nation's first freely elected president.

Islamists reckon they can win the referendum and, once the new constitution is in place, an election for a new parliament about two months later. The Islamist-led lower house elected this year was dissolved after a few months by a court order.

Investors appeared relieved at Mursi's retraction of his decree, sending Egyptian stocks 4.4 percent higher on Sunday. Markets are awaiting approval of a $4.8 billion IMF loan later this month designed to support the budget and economic reforms.

The new decree removed some parts of the old one that had angered the opposition, including an article that had given Mursi broad powers to confront threats to the revolution or the nation - wording that critics said gave him arbitrary authority.

It also dropped an article that had shielded Mursi's actions from the courts until a new parliament was elected, reflecting his distrust of a judiciary largely unreformed from Mubarak's era. But the new decree said "constitutional declarations including this declaration" remained beyond judicial review.

The new decree also set procedures to form an assembly to write a new constitution if Egyptians vote this draft down.

The military, which led Egypt's transition for 16 turbulent months after Mubarak fell, told feuding factions on Saturday that only dialogue could avert "catastrophe". But a military source said these remarks did not herald an army takeover.

(Additional reporting by Tamim Elyan and Yasmine Saleh; Writing by Alistair Lyon; Editing by Mark Heinrich)

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Frankfurt airport axes 150 flights after snowfall

FRANKFURT: Frankfurt airport cancelled 150 incoming and outgoing flights on Sunday because of snowfall and warned that more cancellations could be expected.

Intercontinental, domestic and European flights were all affected at the airport, Europe's third-busiest, and the conditions would delay other flights, a spokesman said.

A total of 1,250 flights had been scheduled for Sunday at what is Germany's biggest airport.

Berlin was also hit by snowy conditions on Sunday, but a spokesman at the capital's airport said that while there were delays of up to 20 minutes were expected as they cleared landing strips, no flights had been cancelled.

- AFP/xq

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India misguided, paranoid over China: Guha

Shreya Roy Chowdhury, TNN Dec 8, 2012, 06.12AM IST

MUMBAI: A good half-hour into the discussion on 'India, China and the World', historian Ramachandra Guha issued a disclaimer—all the three members on the panel had been to China only once. "We should learn their language, promote quality research, and have a panel on China driven by Chinese scholars," he said. And that was the general tenor of the debate—that the Indian attitude to China was influenced by a mix of ignorance, cautious optimism about partnerships and a whole lot of misguided paranoia. "Don't demonise the Chinese, please," Guha finally said in response to a question.

"China has existed in our imaginations," observed Sunil Khilnani, professor of politics and author of The Idea Of India. "There's been very little sustained engagement with the reality of China and very little of our own produced knowledge about China." It was after the events of 1962 ('war' in the popular imagination, 'skirmish' to the scholars participating in the discussion), explained Khilnani, that a miffed India "withdrew". It's the 50th anniversary of that exchange this year, and "what we haven't been able to do is learn from the defeat", observed Khilnani. Both could have benefited from greater engagement. "China has had a very clear focus on primary education and achieved high levels of literacy before its economic rise. It has also addressed the issue of land reform," said Khilnani. Guha added that China could learn from the "religious, cultural and linguistic pluralism" in India.

But China and India weren't always so out of sync with each other. Srinath Raghavan, a scholar of military history, got both Guha and Khilnani to talk about pre-1962 relations between the two when the picture was rosier. Tagore was interested in China and so was Gandhi. Both were very large countries with large populations and shared what Guha calls a "lack of cultural inferiority". "They were both," he continued, "also heavily dependent on peasant communities." Nehru was appreciative of China's will to modernize and industrialize and its adoption of technology to achieve those ends. In turn, Chinese politicians argued for Indian independence.

Things soured more, feel both Khilnani and Guha, after the Dalai Lama fled to India in 1959. "He was welcomed here as a spiritual leader but the intensification of the conflict dates to the Dalai Lama's flight," said Guha. Both Guha and Khilnani argued that Nehru's decision to not react aggressively to China's occupation of Tibet was, in the long run, the right one and prevented further "militarization" of the region. An audience member wondered if that didn't make India "China's puppet". Guha disagreed. "If there's a Tibetan culture alive today," he said, "it's not because of Richard Gere. Don't believe in the hypocrisy of the Western countries. Will they give them land, employment, dignified refuge? The Tibetans is one of the few cases in which our record is honorable."

But the difference in levels of development and the lopsided trade relations between the two countries have only fuelled the suspicions many Indians seem to harbour about China. People were worried, said Guha, even about cricket balls made in China. Audience questions reflected those worries. A member asked about China's "strategy to conquer the world" and its likely impact on India. Guha cautioned against stereotypes; Khilnani explained, "History is littered with the debris of states that have tried to dominate the world. What we're doing may be more long-lasting."

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Smokers celebrate as Wash. legalizes marijuana

SEATTLE (AP) — The crowds of happy people lighting joints under Seattle's Space Needle early Thursday morning with nary a police officer in sight bespoke the new reality: Marijuana is legal under Washington state law.

Hundreds gathered at Seattle Center for a New Year's Eve-style countdown to 12 a.m., when the legalization measure passed by voters last month took effect. When the clock struck, they cheered and sparked up in unison.

A few dozen people gathered on a sidewalk outside the north Seattle headquarters of the annual Hempfest celebration and did the same, offering joints to reporters and blowing smoke into television news cameras.

"I feel like a kid in a candy store!" shouted Hempfest volunteer Darby Hageman. "It's all becoming real now!"

Washington and Colorado became the first states to vote to decriminalize and regulate the possession of an ounce or less of marijuana by adults over 21. Both measures call for setting up state licensing schemes for pot growers, processors and retail stores. Colorado's law is set to take effect by Jan. 5.

Technically, Washington's new marijuana law still forbids smoking pot in public, which remains punishable by a fine, like drinking in public. But pot fans wanted a party, and Seattle police weren't about to write them any tickets.

In another sweeping change for Washington, Gov. Chris Gregoire on Wednesday signed into law a measure that legalizes same-sex marriage. The state joins several others that allow gay and lesbian couples to wed.

The mood was festive in Seattle as dozens of gay and lesbian couples got in line to pick up marriage licenses at the King County auditor's office early Thursday.

King County and Thurston County announced they would open their auditors' offices shortly after midnight Wednesday to accommodate those who wanted to be among the first to get their licenses.

Kelly Middleton and her partner Amanda Dollente got in line at 4 p.m. Wednesday.

Hours later, as the line grew, volunteers distributed roses and a group of men and women serenaded the waiting line to the tune of "Chapel of Love."

Because the state has a three-day waiting period, the earliest that weddings can take place is Sunday.

In dealing with marijuana, the Seattle Police Department told its 1,300 officers on Wednesday, just before legalization took hold, that until further notice they shall not issue citations for public marijuana use.

Officers will be advising people not to smoke in public, police spokesman Jonah Spangenthal-Lee wrote on the SPD Blotter. "The police department believes that, under state law, you may responsibly get baked, order some pizzas and enjoy a 'Lord of the Rings' marathon in the privacy of your own home, if you want to."

He offered a catchy new directive referring to the film "The Big Lebowski," popular with many marijuana fans: "The Dude abides, and says 'take it inside!'"

"This is a big day because all our lives we've been living under the iron curtain of prohibition," said Hempfest director Vivian McPeak. "The whole world sees that prohibition just took a body blow."

Washington's new law decriminalizes possession of up to an ounce for those over 21, but for now selling marijuana remains illegal. I-502 gives the state a year to come up with a system of state-licensed growers, processors and retail stores, with the marijuana taxed 25 percent at each stage. Analysts have estimated that a legal pot market could bring Washington hundreds of millions of dollars a year in new tax revenue for schools, health care and basic government functions.

But marijuana remains illegal under federal law. That means federal agents can still arrest people for it, and it's banned from federal properties, including military bases and national parks.

The Justice Department has not said whether it will sue to try to block the regulatory schemes in Washington and Colorado from taking effect.

"The department's responsibility to enforce the Controlled Substances Act remains unchanged," said a statement issued Wednesday by the Seattle U.S. attorney's office. "Neither states nor the executive branch can nullify a statute passed by Congress."

The legal question is whether the establishment of a regulated marijuana market would "frustrate the purpose" of the federal pot prohibition, and many constitutional law scholars say it very likely would.

That leaves the political question of whether the administration wants to try to block the regulatory system, even though it would remain legal to possess up to an ounce of marijuana.

Alison Holcomb is the drug policy director of the American Civil Liberties Union of Washington and served as the campaign manager for New Approach Washington, which led the legalization drive. She said the voters clearly showed they're done with marijuana prohibition.

"New Approach Washington sponsors and the ACLU look forward to working with state and federal officials and to ensure the law is fully and fairly implemented," she said.

___

Johnson can be reached at https://twitter.com/GeneAPseattle

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Australian DJs Behind Prank Call Under Fire

An outpouring of anger is being directed today at the two Australian radio hosts after the death of a nurse who was caught in the DJs' prank call to hospital where Kate Middleton was treated earlier this week.

Lord Glenarthur, the chairman of King Edward VII's Hospital - the U.K. hospital where the Duchess of Cambridge was receiving treatment, condemned the prank in a letter to the Max Moore-Wilton, chairman of Southern Cross Austereo, the Australian radio station's parent company.

Glenarthur said the prank humiliated "two dedicated and caring nurses," and the consequences were "tragic beyond words," The Associated Press reported.

DJs Mel Greig and Michael Christian, radio shock jocks at Sydney's 2Day FM have been taken off the air, but the company they work for did not fire them or condemn them.

"I think that it's a bit early to be drawing conclusions from what is really a deeply tragic matter," Rhys Holleran, CEO of Southern Cross Austereo told a news conference in Sydney. "I mean, our main concern is for the family. I don't think anyone could have reasonably foreseen that this was going to be a result."

Nurse Jacintha Saldanha was found dead Friday morning after police were called to an address near the hospital to "reports of a woman found unconscious," according to a statement from Scotland Yard.

Circumstances of her death are still being investigated, but are not suspicious at this stage, authorities said Friday.

Following news of Saldanha's death, commentary on social media included posts expressing shock, sadness and anger.

Jacintha Saldanha, Nurse at Kate Middleton's Hospital, Found Dead Watch Video

A sampling of some of the twitter posts directed at the DJs included: "you scumbag, hope you get what's coming to you" and "I hope you're happy now."

The hospital said that Saldanha worked at the hospital for more than four years. They called her a "first-class nurse" and "a well-respected and popular member of the staff."

The hospital extended their "deepest sympathies" to family and friends, saying that "everyone is shocked" at this "tragic event."

"I am devastated with the tragic loss of my beloved wife Jacintha in tragic circumstances, she will be laid to rest in Shirva, India," Saldanha's husband posted on Facebook.

The duchess spent three days at the hospital undergoing treatment for hyperemesis gravidarum, severe or debilitating nausea and vomiting. She was released from the hospital on Thursday morning.

"The Duke and Duchess of Cambridge are deeply saddened to learn of the death of Jacintha Saldanha," a spokesman from St. James Palace said in a statement.

On Friday, Greig and Christian had been gloating about their successful call to the hospital, in which they pretended to be Queen Elizabeth and Prince Charles and were able to obtain personal information about the Duchess's serious condition.

"You know what they were the worst accents ever and when we made that phone call we were sure a hundred people at least before us would have tried the same thing," said Grieg on air. She added with a laugh, "we were expecting to be hung up on we didn't even know what to say [when] we got through."

"We got through and now the entire world is talking, of course," said her co-host Christian.

When the royal impersonators called the hospital, Saldanha put through to a second nurse who told the royal impersonators that Kate was "quite stable" and hadn't "had any retching."

The hospital apologized for the mistake.

"The call was transferred through to a ward, and a short conversation was held with one of the nursing staff," the hospital said in a statement. "King Edward VII's Hospital deeply regrets this incident."

"This was a foolish prank call that we all deplore," John Lofthouse, the hospital's chief executive, said in the statement. "We take patient confidentiality extremely seriously, and we are now reviewing our telephone protocols."

The radio station also apologized for the prank call.

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Egyptian military urges dialogue to avert "catastrophe"

CAIRO (Reuters) - Egypt's military said on Saturday only dialogue could avert "catastrophe", stepping into a crisis pitting an Islamist president against opponents of his drive to reshape a nation in turmoil since Hosni Mubarak's overthrow.

An army statement, which state radio and television interrupted their programs to read out, told feuding factions that a solution to the upheaval in the most populous Arab nation should not contradict "legitimacy and the rules of democracy".

That sounded like a swipe at protesters who have besieged the palace of freely elected President Mohamed Mursi and who have called for his removal, going beyond mainstream opposition demands for him to retract a decree that expanded his powers.

The statement also called for a "serious" national dialogue - perhaps one more credible than talks convened by Mursi on Saturday in the absence of opposition leaders. They insist he must first scrap his November 22 decree, defer next week's popular vote on a new constitution and allow the text to be revised.

Deep rifts have emerged over the destiny of a country of 83 million where Mubarak's ouster after 30 years of autocratic rule led to a messy army-led transition, with the Muslim Brotherhood and its allies winning two elections. Many Egyptians crave a return to stability and economic recovery.

The spokesman for the main Islamist coalition demanded that the referendum go ahead on time on the constitution drafted by an Islamist-led assembly from which liberals had walked out.

The army, which ran Egypt for months after Mubarak fell in February 2011, again cast itself primarily as the neutral guarantor of the nation and a military source said there was no plan to retake control of the country or its turbulent streets.

"DARK TUNNEL"

"The armed forces affirm that dialogue is the best and only way to reach consensus," the statement said. "The opposite of that will bring us to a dark tunnel that will result in catastrophe and that is something we will not allow."

The military, however, did seem poised to take a more active role in security arrangements for the December 15 referendum.

A cabinet source said the cabinet had discussed reviving the army's ability to make arrests if it were called upon to back up police, who normally provide security for elections.

Mursi's office said the "national dialogue", chaired by the president, had begun with about 40 political and other public figures discussing "means to reach a solution to differences over the referendum...and the constitutional decree".

The instability in Egypt worries the West, especially the United States, which has given Cairo billions of dollars in military and other aid since it made peace with Israel in 1979.

The army issued its statement while protesters were still camped out by the gates of the presidential palace.

The tens of thousands of Mursi foes who surged past tanks and barbed wire to reach the palace gates on Friday night had dispersed. But a hard core stayed overnight in a score of tents.

Some had spray-painted "Down with Mursi" on tanks of the elite Republican Guard posted there after clashes between rival groups killed at least seven people and wounded 350 this week.

Others draped the tanks with posters of Mursi and the word "Leave" scored across his face in red letters.

"We are no longer calling for scrapping the decree and delaying the referendum," Samir Fayez, a Christian protester at the palace, said. "We have one demand in five letters: leave."

Nearby, a Mursi supporter named Mohamed Hassan was quietly observing the scene. He suggested that the Muslim Brotherhood and its ultra-orthodox Salafi Islamist allies could easily overwhelm their foes if they chose to mobilize their base.

"The Brotherhood and Salafis by themselves are few but they have millions of supporters who are at home and haven't taken it to the streets yet," murmured the 40-year-old engineer.

"HATE US, BUT TALK"

The Muslim Brotherhood's supreme guide, Mohamed Badie, denounced opposition protests that have swirled around the walls of the Mursi's palace, saying they "ruin legitimacy".

Badie said eight people, all of them Brotherhood members, had been killed this week and urged the interior minister to explain why police had failed to prevent assailants from torching the organization's headquarters and 28 other offices.

"Get angry with the Brotherhood and hate us as much as you like, but be reasonable and preserve Egypt's unity," he told a news conference. "We hope everyone gets back to dialogue."

The well-organized Brotherhood, which thrust Mursi from obscurity to power, remains his surest source of support, with over 80 years of religious and political struggle behind it.

In the referendum, due to be followed by a parliamentary election, Islamist proponents of the constitution may benefit from the votes of millions of Egyptians desperate for the country to move on and revive its crippled economy.

A Brotherhood official welcomed the army's "balanced" line. Former Arab League chief Amr Moussa, now an opposition leader, said the army was reacting to an "enormously dangerous" crisis.

The military was the power behind all previous presidents and an army council temporarily took over after Mubarak's fall. However, Mursi pushed the generals aside in August and they had shown little appetite to intervene in Egypt's latest crisis.

(Additional reporting by Edmund Blair, Omar Fahmy and Yasmine Saleh; Writing by Alistair Lyon; Editing by Mark Heinrich)

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Life & works of local literary icon on exhibit

SINGAPORE: An exhibition that features the life and works of local literary icon Dr Muhammad Ariff Ahmad was launched at the National Library Building on Saturday.

"Sumbangsih MAS: Muhammad Ariff Ahmad" also showcases his writings that are displayed for the first time, including an unpublished manuscript.

The well-respected Malay language and cultural luminary turned 88 two days ago.

This exhibition - which recognises his efforts and contributions towards Singapore's literary scene, comes as a timely birthday gift.

Jointly organised by National Library Board, ASAS 50 and the Malay Language Council, the exhibition is in English and Malay to reach out to a wider community.

In conjunction with the exhibition, NLB published a bibliography on Dr Ariff's works, in the hope that it becomes a source of reference for researchers of Malay literature in Singapore.

The National Library Board also produced a collection of 25 of Dr Ariff's poems that were penned since 1947.

"What can be expected in this exhibition is the life and contributions of Cikgu Muhammad Ariff, mainly in the areas of language, literature and in the education field," said Juffri Supa'at, curator for the exhibition and senior librarian of the National Library.

The exhibition is part of NLB's Literary Pioneer Series in honour of Singapore's literary figures.

The exhibition runs at Level 9 of the National Library Building until 3 February 2013. It is open to public and admission is free.

- CNA/xq

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