Ukrainian MPs brawl in parliament as PM re-appointed

KIEV: The Ukrainian parliament Thursday voted to reinstate its prime minister after dozens of opposition and pro-government lawmakers brawled for a second day in the chamber notorious for its fisticuffs.

Newly-elected world boxing champion Vitali Klitschko sought to stand above the fray by staying well out of the fighting that came just before parliament voted to re-appoint Prime Minister Mykola Azarov.

Deputies in suits and shirtsleeves climbed on tables, shouted and grappled with opponents in an angry protest against lawmakers pressing electronic buttons to vote for absentee colleagues.

While lawmakers are legally obliged to vote in person, many of them run around pressing buttons for absent colleagues.

Opposition politicians rose to their feet and rushed to blockade the speaker's tribune, while being pushed back by pro-government lawmakers.

Amid angry shouts and calls for calm, some clambered on desks from where they dealt blows and jumped down on opponents.

At least one opposition lawmaker had a bruised face after being thrown to the floor and receiving punches and kicks from ruling party lawmakers, the Interfax news agency reported.

The towering boxing champion Klitschko, whose opposition party UDAR, or punch, has won 42 seats in the parliament, refrained from joining the skirmishes and could be seen seated, watching the fight calmly.

"You could call the fists of a world champion a nuclear weapon. I don't think we will use this weapon yet," Klitschko said, quoted by his party press service.

But he added: "We do support the blockading of the tribune."

After a break, the parliament managed to restore calm and hold a vote to reappoint prime minister Azarov that had been postponed from Wednesday.

A total of 252 deputies out of 450 in the single-chamber parliament supported Azarov's return to office, including President Viktor Yanukovych's ruling Regions Party, the Communists and several independents.

Three opposition factions - Batkivshchyna (Fatherland) party close to jailed ex-prime minister Yulia Tymoshenko, the UDAR party of Klitschko and the Svoboda nationalist movement - did not back Azarov.

"The politics of the Regions Party of which Azarov is a representative is anti-Ukrainian, anti-social and anti-democratic," said comments from Svoboda.

It remained unclear why Azarov, 64, took the dramatic step of resigning earlier this month, with the presidency saying at the time that Yanukovych had accepted his request to give up his post and become an MP.

Azarov called on the parliament to leave behind the "confrontation" to "face together outside challenges" including the global economic crisis that is already hurting Ukraine.

The parliament's opening session on Wednesday had earlier seen fighting erupt between opposition lawmakers and deputies whom they accused of defecting to the pro-government camp.

In a typically raucous session, feminist group Femen also staged a topless anti-corruption protest outside the entrance to the parliament wearing only black pants.

The brawls were an ugly start to a new parliament apparently still controlled by Yanukovych's Regions Party, which claims to have won a majority in legislative elections on October 28.

The October polls were widely criticised by the international community, coming as Tymoshenko continues to serve a seven-year prison term for abuse of power that she argues is politically motivated.

The Ukrainian parliament is often the scene of scuffles with lawmakers throwing eggs and letting off smokebombs.

Two years ago several opposition deputies were badly injured in a bloody brawl prompted by the opening of a criminal probe into Tymoshenko that saw punches thrown and chairs hurled.

- AFP/de

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SC verdict on Mulayam's plea against probe in DA case on Thursday

NEW DELHI: The Supreme Court will pronounce tomorrow its verdict on Samajwadi Party supremo Mulayam Singh Yadav and his family members' plea for review of its order for CBI probe against them for allegedly amassing disproportionate assets.

A bench of Chief Justice Altamas Kabir and Justice H L Dattu, which had reserved its order on February 17 last year, will pronounce the verdict on review petition filed by Yadav, his sons Akhilesh and Prateek and daughter-in-law Dimple.

The apex court had ordered a CBI inquiry on March 1, 2007 into the alleged accumulation of disproportionate assets by Yadav family, on a public interest litigation (PIL) by an advocate, Vishwanath Chaturvedi, reportedly a Congress leader.

Deviating from the precedent of hearing review petitions in the judges' chambers, the bench had heard the petition in open court at Yadavs' request.

Seeking review of the apex court order, Yadav and his family members had submitted that there was no evidence against them who are being harassed by political adversaries.

They assailed the apex court's earlier order claiming it would "set a dangerous precedent" of allowing political opponents to file "false and frivolous" petitions against their detractors.

During the arguments, the Centre, while refraining from going into the merits of the allegations against the Yadavs, had cited a number of judicial pronouncements to drive home the point that the apex court has powers to order a CBI inquiry in "exceptional cases."

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Congress examines science behind HGH test for NFL

WASHINGTON (AP) — A congressional committee has opened a hearing to examine the science behind a human growth hormone test the NFL wants to start using on its players.

Nearly two full seasons have passed since the league and the players' union signed a labor deal that set the stage for HGH testing.

The NFL Players Association won't concede the validity of a test that's used by Olympic sports and Major League Baseball, and the sides haven't been able to agree on a scientist to help resolve that impasse.

Among the witnesses before the House Oversight and Government Reform Committee on Wednesday is Pro Football Hall of Fame member Dick Butkus. In his prepared statement, Butkus writes: "Now, let's get on with it. The HGH testing process is proven to be reliable."

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Mall Gunman Wanted to Kill 'Total Strangers'

The masked gunman who opened fire in the crowded Clackamas Town Center mall in suburban Portland, Ore., killing two and seriously injuring a third before killing himself, was trying to "kill as many people as possible."

The shooter, wearing a white hockey mask, black clothing and a bullet proof vest, tore through the mall just before 3:30 p.m. Tuesday, entering through a Macy's store and heading to the food court and public areas spraying bullets, according to witness reports.

Police have identified the gunman, but have not released his name, Sheriff Craig Roberts told "Good Morning America."

"We have been able to identify the shooter over this last night," Roberts said. "I believe, at least from the information that's been provided to me at this point in time, it really was a killing of total strangers. To my knowledge at this point in time he was really trying, I think, to kill as many people as possible."

Police have not released the names of the shooter's victims. Clackamas County Sheriff's Department Lt. James Rhodes said authorities are in the process of notifying victims' families.

The injured victim, identified by hospital officials as Kristina Shevchenko, has been taken to a hospital, according to Roberts.

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Nadia Telguz, who said she was a friend of Shevchenko, told ABC News affiliate KATU-TV in Portland that the woman was expected to recover.

"My friend's sister got shot," Teleguz told KATU. "She's on her way to (Oregon Health and Science University Hospital). They're saying she got shot in her side and so it's not life-threatening, so she'll be OK."

Witnesses from the shooting rampage said that a young man who appeared to be a teenager, ran through the upper level of Macy's to the mall food court, firing multiple shots, one right after the other, with what is believed to be a black, semi-automatic rifle.

By 4:40 p.m., police reported finding a group of people hiding in a storeroom. In a surreal moment, even the mall Santa was seen running for his life.

"I didn't know where the gunman was, so I decided to kind of eased my way out," said the mall Santa, who the AP identified as 68-year-old Brance Wilson.

More than 10,000 shoppers were at the mall during the day, according to police. Roberts said that officers responded to the scene of the shooting within minutes, and four SWAT teams swept the 1.4 million-square-foot building searching for the shooter. He was eventually found dead, an apparent suicide.

"I can confirm the shooter is dead of an apparent self-inflicted gunshot wound," Rhodes said. "By all accounts there were no rounds fired by law enforcement today in the mall."

Roberts said more than 100 law enforcement officers responded to the shooting, and the FBI and Bureau of Alcohol, Tobacco and Firearms are working with local agencies to trace the shooter's weapon.

Cell phone video shot at the scene shows the chaos soon after the shooting. When police arrived they were met head on by terrified shoppers, children and employees streaming out. Customers, even a little girl, were being lead out with their hands up.

"I think a variety of things happened that I think this could have been much, much worse," Roberts told "GMA." "And to give you some ideas, we got the call at 3:29, we had someone on scene within a minute, 30 seconds.

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North Korea launches rocket , raising nuclear arms stakes

SEOUL/TOKYO (Reuters) - North Korea successfully launched a rocket on Wednesday, boosting the credentials of its new leader and stepping up the threat the isolated and impoverished state poses to opponents.

The rocket, which North Korea says put a weather satellite into orbit, has been labeled by the United States, South Korea and Japan as a test of technology that could one day deliver a nuclear warhead capable of hitting targets as far away as the continental United States.

"The satellite has entered the planned orbit," a North Korean television news reader clad in traditional Korean garb announced, after which the station played patriotic songs with the lyrics "Chosun (Korea) does what it says".

The rocket was launched just before 10 a.m. (0100 GMT), according to defense officials in South Korea and Japan, and was more successful than a rocket launched in April that flew for less than two minutes.

The North American Aerospace Defense Command (NORAD) said that it "deployed an object that appeared to achieve orbit", the first time an independent body has verified North Korean claims.

North Korea followed what it said was a similar successful launch in 2009 with a nuclear test that prompted the U.N. Security Council to stiffen sanctions that it originally imposed in 2006 after the North's first nuclear test.

North Korea is banned from developing nuclear and missile-related technology under U.N. resolutions, although Kim Jong-un, the youthful head of state who took power a year ago, is believed to have continued the state's "military first" programs put in place by his late father, Kim Jong-Il.

North Korea hailed the launch as celebrating the prowess of all three members of the Kim family to rule since it was founded in 1948.

"At a time when great yearnings and reverence for Kim Jong-il pervade the whole country, its scientists and technicians brilliantly carried out his behests to launch a scientific and technological satellite in 2012, the year marking the 100th birth anniversary of President Kim Il Sung," its KCNA news agency said. Kim Il Sung, the current leader's grandfather, was North Korea's first leader.

The United States condemned the launch as "provocative" and a breach of U.N. rules, while Japan's U.N. envoy called for a Security Council meeting. However, diplomats say further tough sanctions are unlikely from the Security Council as China, the North's only major ally, will oppose them.

"The international community must work in a concerted fashion to send North Korea a clear message that its violations of United Nations Security Council resolutions have consequences," the White House said in a statement.

U.S. intelligence has linked North Korea with missile shipments to Iran. Newspapers in Japan and South Korea have reported that Iranian observers were in the North for the launch, something Iran has denied.

Japan's likely next prime minister, Shinzo Abe, who is leading in opinion polls ahead of an election on Sunday and who is known as a hawk on North Korea, called on the United Nations to adopt a resolution "strongly criticizing" Pyongyang.

A North Korean Foreign Ministry spokesman reiterated that the rocket was a "peaceful project".

"The attempt to see our satellite launch as a long-range missile launch for military purposes comes from hostile perception that tries to designate us a cause for security tension," KCNA cited the spokesman as saying.

"STUMBLING BLOCK"

China had expressed "deep concern" prior to the launch which was announced a day after a top politburo member, representing new Chinese leader Xi Jinping, met Kim Jong-un in Pyongyang.

On Wednesday, its tone was measured, regretting the launch but calling for restraint on any counter-measures, in line with a policy of effectively vetoing tougher sanctions.

"China believes the Security Council's response should be cautious and moderate, protect the overall peaceful and stable situation on the Korean peninsula, and avoid an escalation," Chinese Foreign Ministry spokesman Hong Lei told journalists.

Bruce Klingner, a Korea expert at the Heritage Foundation, said: "China has been the stumbling block to firmer U.N. action and we'll have to see if the new leadership is any different than its predecessors."

A senior adviser to South Korea's president said last week it was unlikely there would be action from the United Nations and Seoul would expect its allies to tighten sanctions unilaterally.

Kim Jong-un, believed to be 29 years old, took power when his father died on December 17 last year and experts believe the launch was intended to commemorate the first anniversary of his death. The April launch was timed for the centennial of the birth of Kim Il Sung.

Wednesday's success puts the North ahead of the South which has not managed to get a rocket off the ground.

"This is a considerable boost in establishing the rule of Kim Jong-un," said Cho Min, an expert at the Korea Institute of National Unification.

There have been few indications the secretive and impoverished state, where the United Nations estimates a third of people are malnourished, has made any advances in opening up economically over the past year.

North Korea remains reliant on minerals exports to China and remittances from tens of thousands of its workers overseas.

Many of its 22 million people need handouts from defectors, who have escaped to South Korea, for basic medicines.

Given the puny size of its economy - per capita income is less than $2,000 a year - one of the few ways the North can attract world attention is by emphasizing its military threat.

It wants the United States to resume aid and to recognize it diplomatically, although the April launch scuppered a planned food deal.

The North is believed to be some years away from developing a functioning nuclear warhead although it may have enough plutonium for about half a dozen nuclear bombs, according to nuclear experts.

It has also been enriching uranium, which would give it a second path to nuclear weapons as it sits on big natural uranium reserves.

"A successful launch puts North Korea closer to the capability to deploy a weaponized missile," said Denny Roy, a senior fellow at the East-West Center in Hawaii.

"But this would still require fitting a weapon to the missile and ensuring a reasonable degree of accuracy. The North Koreans probably do not yet have a nuclear weapon small enough for a missile to carry."

The North says its work is part of a civil nuclear program although it has also boasted of it being a "nuclear weapons power".

(Additional reporting by Jumin Park and Yoo Choonsik in SEOUL; David Alexander, Matt Spetalnick and Paul Eckert in WASHINGTON; Linda Sieg in TOKYO, Sui-Lee Wee and Michael Martina in BEIJING,; Rosmarie Francisco in MANILA; Writing by David Chance; Editing by Raju Gopalakrishnan and Robert Birsel)

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PM Lee to nominate new Speaker when Parliament next meets

SINGAPORE: Prime Minister Lee Hsien Loong will nominate a new Speaker of Parliament when Parliament next meets, following the resignation of Mr Michael Palmer.

In the meantime, Deputy Speaker of Parliament Mr Charles Chong will serve as Acting Speaker.

When asked who is likely to be considered for the post of Speaker, some Members of Parliament (MPs) from the ruling People's Action Party told Channel NewsAsia that they are still coming to terms with the news of Mr Palmer's resignation.

Singapore's Parliament has two Deputy Speakers.

Besides Mr Charles Chong, the MP for Marine Parade GRC, Mr Seah Kian Peng, is the other Deputy Speaker.

MP for Moulmein-Kallang GRC, Denise Phua, said Mr Seah could be a possible candidate for the new Speaker of Parliament.

When asked if he would consider the post if he was approached to take it up, Mr Seah said the role of Speaker requires a lot of time and anyone taking the job would want to consider the matter seriously.

GPC chair for Communications and Information, Zaqy Mohamed, said that for now, the two Deputy Speakers would perform the role until such time the candidate for Speaker is proposed to Parliament.

Nominated MP Eugene Tan is of the view that either one of the two Deputy Speakers or former Cabinet Ministers who are now currently MPs, could be considered for the post of Speaker.

Singapore's Parliament will sit on 14 January.

- CNA/ir

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Congress nuances its stand on Rahul's leadership

NEW DELHI: A day after announcing that he will lead the campaign in 2014 Lok Sabha elections, Congress today nuanced its stand saying it will fight the polls under the leadership of Sonia Gandhi and Rahul Gandhi.

"I think party spokesperson P C Chacko has already clarified...Sonia Gandhi is our leader and President of the Congress Party. She will continue to be President.

"We are going to fight the 2014 elections under the leadership of Sonia Gandhi and Rahul Gandhi", party spokesman Rashid Alvi said here today.

The remarks are significant as Chacko had said yesterday that Rahul Gandhi will lead UPA's campaign in the 2014 elections and take up an "important responsibility " in the party "very soon".

To a query on what will be the role of Sonia Gandhi after Rahul takes up a party position, Chacko had said "she is the President now. She will be the patron. She will be the supreme leader of the party".

Earlier in the day, Chacko clarified that the role of Rahul Gandhi in the next Lok Sabha elections will be decided by the Congress general secretary and Sonia Gandhi at an appropriate time.

The AICC spokesman said "I did not mean any decision has been taken in this regard when I said Rahul Gandhi will be leading the next election campaign."

He said he had made the remarks in response to questions by mediapersons and these "should not be interpreted as any decision having been taken".

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New tests could hamper food outbreak detection

WASHINGTON (AP) — It's about to get faster and easier to diagnose food poisoning, but that progress for individual patients comes with a downside: It could hurt the nation's ability to spot and solve dangerous outbreaks.

Next-generation tests that promise to shave a few days off the time needed to tell whether E. coli, salmonella or other foodborne bacteria caused a patient's illness could reach medical laboratories as early as next year. That could allow doctors to treat sometimes deadly diseases much more quickly — an exciting development.

The problem: These new tests can't detect crucial differences between different subtypes of bacteria, as current tests can. And that fingerprint is what states and the federal government use to match sick people to a contaminated food. The older tests might be replaced by the new, more efficient ones.

"It's like a forensics lab. If somebody says a shot was fired, without the bullet you don't know where it came from," explained E. coli expert Dr. Phillip Tarr of Washington University School of Medicine in St. Louis.

The federal Centers for Disease Control and Prevention warns that losing the ability to literally take a germ's fingerprint could hamper efforts to keep food safe, and the agency is searching for solutions. According to CDC estimates, 1 in 6 Americans gets sick from foodborne illnesses each year, and 3,000 die.

"These improved tests for diagnosing patients could have the unintended consequence of reducing our ability to detect and investigate outbreaks, ultimately causing more people to become sick," said Dr. John Besser of the CDC.

That means outbreaks like the salmonella illnesses linked this fall to a variety of Trader Joe's peanut butter might not be identified that quickly — or at all.

It all comes down to what's called a bacterial culture — whether labs grow a sample of a patient's bacteria in an old-fashioned petri dish, or skip that step because the new tests don't require it.

Here's the way it works now: Someone with serious diarrhea visits the doctor, who gets a stool sample and sends it to a private testing laboratory. The lab cultures the sample, growing larger batches of any lurking bacteria to identify what's there. If disease-causing germs such as E. coli O157 or salmonella are found, they may be sent on to a public health laboratory for more sophisticated analysis to uncover their unique DNA patterns — their fingerprints.

Those fingerprints are posted to a national database, called PulseNet, that the CDC and state health officials use to look for food poisoning trends.

There are lots of garden-variety cases of salmonella every year, from runny eggs to a picnic lunch that sat out too long. But if a few people in, say, Baltimore have salmonella with the same molecular signature as some sick people in Cleveland, it's time to investigate, because scientists might be able narrow the outbreak to a particular food or company.

But culture-based testing takes time — as long as two to four days after the sample reaches the lab, which makes for a long wait if you're a sick patient.

What's in the pipeline? Tests that could detect many kinds of germs simultaneously instead of hunting one at a time — and within hours of reaching the lab — without first having to grow a culture. Those tests are expected to be approved as early as next year.

This isn't just a science debate, said Shari Shea, food safety director at the Association of Public Health Laboratories.

If you were the patient, "you'd want to know how you got sick," she said.

PulseNet has greatly improved the ability of regulators and the food industry to solve those mysteries since it was launched in the mid-1990s, helping to spot major outbreaks in ground beef, spinach, eggs and cantaloupe in recent years. Just this fall, PulseNet matched 42 different salmonella illnesses in 20 different states that were eventually traced to a variety of Trader Joe's peanut butter.

Food and Drug Administration officials who visited the plant where the peanut butter was made found salmonella contamination all over the facility, with several of the plant samples matching the fingerprint of the salmonella that made people sick. A New Mexico-based company, Sunland Inc., recalled hundreds of products that were shipped to large retailers all over the country, including Target, Safeway and other large grocery chains.

The source of those illnesses probably would have remained a mystery without the national database, since there weren't very many illnesses in any individual state.

To ensure that kind of crucial detective work isn't lost, the CDC is asking the medical community to send samples to labs to be cultured even when they perform a new, non-culture test.

But it's not clear who would pay for that extra step. Private labs only can perform the tests that a doctor orders, noted Dr. Jay M. Lieberman of Quest Diagnostics, one of the country's largest testing labs.

A few first-generation non-culture tests are already available. When private labs in Wisconsin use them, they frequently ship leftover samples to the state lab, which grows the bacteria itself. But as more private labs switch over after the next-generation rapid tests arrive, the Wisconsin State Laboratory of Hygiene will be hard-pressed to keep up with that extra work before it can do its main job — fingerprinting the bugs, said deputy director Dr. Dave Warshauer.

Stay tuned: Research is beginning to look for solutions that one day might allow rapid and in-depth looks at food poisoning causes in the same test.

"As molecular techniques evolve, you may be able to get the information you want from non-culture techniques," Lieberman said.

___

Follow Mary Clare Jalonick on Twitter at http://twitter.com/mcjalonick

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Royal Hoax: Station to Give $500K to Nurse's Family

The Australian radio station that employed the DJs who prank-called the London hospital where Kate Middleton was being treated has cancelled their show and will donate at least $500,000 to the grieving husband and children of the nurse who took the call and later apparently killed herself.

Australia's 2Day FM released a statement today saying it hopes to "help [Jacintha] Saldanha's family with the support they need at this very difficult time."

After days of suspended advertising, the radio station at the center of a global firestorm announced it will resume airing commercials Thursday. All its profits for the rest of the year will go directly to the family of the unsuspecting nurse at the center of that joke.

The Sydney-based station also issued a company-wide suspension of prank calls after the nurse who initially answered the hospital call was found dead.

Saldanha's husband and two teenage children met with officials at the hospital Monday, and spoke publicly for the first time, although via a member of the British Parliament.

Royal Hospital Hoax: End to Shock-Jock Pranks? Watch Video

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"This is a close family," Keith Vaz said. "They are devastated by what has happened. They miss her every moment of every day.

Although radio pranks have been a staple of shock DJs for years, DJs Mel Greig and Michael Christian of Australia's 2Day FM might have crossed the line last week when they pranked the hospital, prompting the question of whether this is the end for radio pranking.

"Entertainers try to use real-life everyday circumstances and try to find humor in them," Radio DJ J Niice of B96 in Chicago, who does regular pranks on his show, told ABC News.

DJ Niice says his station has no intentions of pulling the plug on prank calls because it doesn't need to.

Based on U.S. law, such calls only become problematic when any resulting damage or injury could have been foreseen.

Former Alaska Gov. Sarah Palin was famously pranked while running for vice president by a notorious Montreal-based comedy duo, who pretended to be then-French President Nicolas Sarkozy.

"You know, I see you as a president one day," one of them told Palin, to which she replied with a giggle, "Maybe in eight years.'"

A prank caller even managed to make his way through security to speak to Tony Blair while he was still British prime minister. But it was no laughing matter in 1998 when Opie and Anthony, DJs from a Boston radio station, were fired for telling listeners on April Fools' Day that the city's mayor had died in a car accident.

While the Australian DJs' show has been terminated, it's still unclear whether they will be.

They could face criminal charges if police determine their call was illegally recorded. And the same joke at which they initially laughed is now the reason for their tears.

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IMF loan to Egypt delayed as crisis deepens

CAIRO (Reuters) - A vital $4.8 billion International Monetary Fund loan to Egypt will be delayed until next month, its finance minister said on Tuesday, intensifying the political crisis gripping the Arab world's most populous nation.

As rival factions gathered in Cairo and Alexandria for a new round of demonstrations, Finance Minister Mumtaz al-Said said the delay in the loan agreement was intended to allow time to explain a heavily criticised package of economic austerity measures to the Egyptian people.

The announcement came after President Mohamed Mursi on Monday backed down on planned tax increases, seen as key for the loan to go ahead. Opposition groups had greeted the tax package, which had included duties on alcoholic drinks, cigarettes and a range of goods and services, with furious criticism.

"Of course the delay will have some economic impact, but we are discussing necessary measures (to address that) during the coming period," the minister told Reuters, adding: "I am optimistic ... everything will be well, God willing."

Prime Minister Hisham Kandil said Egypt had requested that the loan be delayed by a month.

"The challenges are economic not political and must be dealt with aside from politics," he told a news conference.

Kandil said the reforms would not hurt the poor. Bread sugar and rice would not be touched, but cigarettes and cooking oil would go up and fines would be imposed for public littering. In a bid to rebuild consensus, he said there would be a national dialogue about the economic program next week.

In Washington, the IMF said Egypt had asked for the loan to be postponed "in light of the unfolding developments on the ground". The Fund stood ready to consult with Egypt on resuming discussions on the stand-by loan, a spokeswoman said.

GUNMEN OPEN FIRE

On the streets of the capital, tensions ran high after nine people were hurt when gunmen fired at protesters camping in Tahrir Square, according to witnesses and Egyptian media.

The opposition has called for a major demonstration it hopes will force Mursi to postpone a referendum on a new constitution.

Outside the presidential palace, dozens of protesters succeeded in pushing down two giant concrete blocks forming a small part of a wall blocking access to the site.

Thousands of flag-waving Islamist Mursi supporters, who want the vote to go ahead as planned on Saturday, assembled at a nearby mosque, setting the stage for further street confrontations in a crisis that has divided the nation of 83 million.

In Egypt's second city of Alexandria, thousands of rival demonstrators gathered at separate venues. Mursi's backers chanted: "The people want implementation of Islamic law," while his opponents shouted: "The people want to bring down the regime."

The upheaval following the fall of Hosni Mubarak last year is causing concern in the West, in particular the United States, which has given Cairo billions of dollars in military and other aid since Egypt made peace with Israel in 1979.

The turmoil has also placed a big strain on the economy, sending foreign currency reserves down to about $15 billion, less than half what they were before the revolt two years ago as the government has sought to defend the pound.

"Given the current policy environment, it's hardly a surprise that there's been a delay, but it is imperative that the delay is brief," said Simon Williams, HSBC economist in Dubai. "Egypt urgently needs that IMF accord, both for the funding it brings and the policy anchor it affords."

The IMF deal had been seen as giving a seal of approval to investors and donors about the government's economic plans, vital for drawing more cash into the economy to ease a crushing budget deficit and stave off a balance of payments crisis.

MASKED ATTACKERS

In central Cairo, police cars surrounded Tahrir Square in central Cairo, the first time they had appeared in the area since November 23, shortly after a decree by Mursi awarding himself sweeping temporary powers that touched off widespread protests.

The attackers, some masked, also threw petrol bombs that started a small fire, witnesses said.

"The masked men came suddenly and attacked the protesters in Tahrir. The attack was meant to deter us and prevent us from protesting today. We oppose these terror tactics and will stage the biggest protest possible today," said John Gerges, a Christian Egyptian who described himself as a socialist.

The latest bout of unrest has so far claimed seven lives in clashes between the Islamist Muslim Brotherhood and opponents who are also gathering outside Mursi's presidential palace.

The elite Republican Guard which protects the palace has yet to use force to keep protesters away from the graffiti-daubed building, now ringed with tanks, barbed wire and concrete barricades.

The army has told all sides to resolve their differences through dialogue, saying it would not allow Egypt to enter a "dark tunnel". For the period of the referendum, the army has been granted police powers by Mursi, allowing it to arrest civilians.

The army has portrayed itself as the guarantor of the nation's security, but so far it has shown no appetite for a return to the bruising front-line political role it played after the fall of Mubarak, which severely damaged its standing.

OPPOSITION MARCHES

Leftists, liberals and other opposition groups called for marches say the hastily arranged constitutional referendum is polarizing the country and could put it in a religious straightjacket.

Mohamed ElBaradei, a prominent opposition leader and Nobel prize winner, said the referendum should be postponed for a couple of months due to the chaotic situation.

"This revolution was not staged to replace one dictator with another," he said in an interview with CNN.

Opposition leaders want the referendum to be delayed and hope they can get sufficiently large numbers of protesters on the streets to change Mursi's mind.

Islamists, who dominated the body that drew up the constitution, have urged their followers to turn out to show support for the president and for a referendum they feel sure of winning.

The opposition says the draft constitution fails to embrace the diversity of the population, a tenth of which is Christian, and invites Muslim clerics to influence lawmaking.

(Writing by Giles Elgood; Editing by Peter Graff and Will Waterman)

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