Berlusconi sows confusion with support for Monti as PM

ROME: Italy's Silvio Berlusconi sowed confusion Wednesday saying he could abandon his re-election bid if Prime Minister Mario Monti decided to run as leader of a centre-right coalition, a stunning twist to his two-decade political career.

"If Monti runs for leader, I would take a step back," Berlusconi said, a day after he criticised his successor for failing to revive the Italian economy and said he was "too German-centric".

"I think it would be a great benefit for the country if professor Monti becomes the next prime minister as leader of a moderate movement," he said.

Berlusconi said he could also be a coordinator of a broad centre-right coalition without being its candidate or choose to go for some "well-deserved rest".

There is growing speculation in Italian media that Monti, a former high-flying European commissioner, could run in the elections, but the 69-year-old economist has so far declined to comment.

To the general confusion of journalists at the book presentation where he was speaking, billionaire Berlusconi added: "At the moment I am a candidate for Palazzo Chigi" -- the prime minister's residence.

The three-time prime minister then said the current secretary of his People of Freedom (PDL) party, Angelino Alfano, could be a possible candidate instead.

"I was pushed by my supporters to be the candidate, I did not put myself forward," Berlusconi said.

"I do not at all exclude" Alfano's candidacy, the 76-year-old said, adding: "It is absolutely possible that he will be the prime minister."

Berlusconi's comments surprised political observers, since he and Monti have been clashing at a distance this week with barbed references to each other's government records.

Riccardo Barenghi, a columnist for La Stampa daily, dismissed Berlusconi's offer as "a joke".

"It's clear that the candidate from the centre-right is still Silvio Berlusconi. He's back in full form," Barenghi said.

Berlusconi's party withdrew its support for Monti's unelected, technocratic government in parliament last week, prompting the prime minister to announce that he will resign as soon as next year's budget is approved in the coming days.

Berlusconi officially launched his campaign for a new term as premier on Saturday, saying "I am running to win."

Monti replaced Berlusconi in November 2011 after the tycoon was forced out by a parliamentary revolt, a wave of panic on the financial markets and a series of damaging sex scandals.

Monti is widely credited with dragging Italy back from the brink of bankruptcy by keeping a lid on public finances, launching long-delayed economic reforms and restoring Italy's credibility abroad.

Unemployment has risen to record highs and austerity has hit the middle class hard, however, and the economy has remained mired in recession with a slight recovery only expected in the second half of 2013.

Monti said on Wednesday that Berlusconi had resigned "leaving a lot left to be done", adding: "That is why whoever wins the elections will have to try and continue reforms."

Reacting to criticism of his candidacy from European leaders, Berlusconi on Wednesday said: "I think there have been misunderstandings and a lot of malice from these people.

"I am against a European Union with hegemonic countries that do not show solidarity," he added.

He said that a "hegemonic Germany" gave the European Central Bank only the power to fight inflation when the single currency was formed.

"That's why the euro is not a real currency," he said.

Germany reacted to earlier criticism from Berlusconi on Tuesday, with Foreign Minister Guido Westerwelle saying it was unacceptable for Germany to be used as a target in a "populist election campaign".

"Neither Germany nor Europe is to blame for the difficulties in Italy. On the contrary, Germany has always been a great help in overcoming the problems," Westerwelle said.

The German minister also warned that if Italy's new government goes back on Monti's reforms "it would be a dangerous development for Europe."

Berlusconi on Wednesday also criticised European Council President Herman Van Rompuy saying "he was not a part of the history of the European Union."

A convicted tax fraudster who is on trial for abuse of power and having sex with an underage prostitute, Berlusconi is running for election for the sixth time since 1994, when he started out with a party called Forza Italia (Go Italy).

The current favourite to win in the elections expected in February is Pier Luigi Bersani, head of the centre-left Democratic Party.

Bersani has promised to follow Monti's agenda in terms of "discipline and austerity" but adding more "jobs and equity".

-AFP/ac

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477 convicts in jails awaiting hanging, govt tells Rajya Sabha

NEW DELHI: As many as 477 convicts awarded death sentence are awaiting hanging in various jails across the country, the government told the Rajya Sabha on Wednesday.

Maharashtra, which last month hanged LeT terrorist Ajmal Kasab in a secret operation after President Pranab Mukherjee rejected his mercy petition, has 50 convicts in its jails awaiting hanging, putting it third on the list of states with maximum number of convicts awaiting hanging.

The data was released by the government in Rajya Sabha in response to a question on number of criminals in jails, as on December 1, 2012, who have been awarded death sentence and are yet to be hanged.

The data revealed that UP had the maximum number of criminals (174) in jails with a death sentence. Second on the list was Karnataka with 61 convicts awaiting hanging. Bihar is at fourth place with 37.

Delhi, which has Parliament attack accused Afzal Guru as one of the convicts awaiting hanging, has 24 such convicts. None of the other Union Territories have any such convict in their jails.

Among larger states, Andhra Pradesh and Rajasthan have the least number of pending hangings with three and four respectively.

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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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Video of Columbus Circle Killer Released

The hunt for New York's Columbus Circle killer took on a new impetus today as police released surveillance video showing the killer moments before he calmly walked up to Brandon Lincoln Woodard and put one bullet from a silver colored handgun into the back of the Los Angeles man's head in full view of holiday shoppers.

The video confirms the details of the hit man's calculated wait for his victim as first reported on ABCNews.com on Monday.

"In the video, the gunman wanted in the shooting death yesterday of Brandon Lincoln Woodard, 31, of Los Angeles, is seen 10 minutes before the shooting," Deputy Commissioner for Public Information Paul Browne said in a statement today.

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Woodard, who is described by police as linked to the hip hop part of the Los Angeles entertainment industry, was strolling down 58th Street near the southern end of Central Park when he was gunned down.

"The shooter, who appears to be bald and may have a beard, exited a late model Lincoln sedan, initially bare-headed, but soon pulled the hood of his jacket over his head. Ten minutes later, at approximately 2 p.m., the shooter walked up behind Woodard and fired," Browne said.

In a grainy still image also released, the gunman is seen behind Woodard a moment before the shooting, pulling the weapon from his jacket.

Just before he was shot, Woodard turned "instinctively almost," then turned back to his portable electronic device, police told ABC News.

Sources tell ABC News that Woodard was arrested in 2009 in connection with a robbery in California.

Woodard was raised in Los Angeles' Ladera Heights neighborhood and attended the private Campbell Hall High School, they said. He attended college and law school at Loyola Marymount College in Los Angeles, law enforcement sources and friends said.

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Egypt army seeks national unity as crisis mounts

CAIRO (Reuters) - Egypt's army chief called for talks on national unity to end the country's deepening political crisis after a vital loan from the IMF was delayed and thousands of pro- and anti-government demonstrators took to the streets.

The meeting, scheduled for Wednesday afternoon, was called in response to a destabilizing series of protests since President Mohamed Mursi awarded himself sweeping powers on November 22 to push through a new constitution shaped by his Islamist allies in a referendum on Saturday.

"We will not speak about politics nor about the referendum. Tomorrow we will sit together as Egyptians," armed forces chief and Defense Minister Abdel Fattah al-Sisi said at a joint gathering of army and police officials.

An aide said Mursi had supported the call for talks. The Muslim Brotherhood announced it would be there, while the main opposition coalition said it would decide on Wednesday morning whether to attend.

Earlier, the finance minister disclosed that a $4.8 billion International Monetary Fund loan, a cornerstone of Egypt's economic recovery hopes, would be delayed until next month.

Mumtaz al-Said said the delay was intended to allow time to explain a widely criticized package of economic austerity measures to the Egyptian people.

On Monday Muris backed down on planned tax rises, seen as essential for the loan to go ahead, but which the opposition had fiercely criticized.

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

Prime Minister Hisham Kandil said the measures would not hurt the poor. Bread, sugar and rice would not be touched, but prices of 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 public consultation about the 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 Cairo, 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 major protests it hopes will force Mursi to postpone the referendum. Thousands gathered outside the presidential palace, whose walls are scrawled with anti-Mursi graffiti.

A bigger crowd of flag-waving Islamist Mursi backers, 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". Others cities also witnessed protests.

The upheaval following the fall of Hosni Mubarak last year is causing concern in the United States, which has given Cairo billions of dollars in military and other aid since Egypt, the Arab world's most populous nation, made peace with Israel in 1979.

State Department spokeswoman Victoria Nuland emphasized "deep concerns" over the situation in Egypt and repeated calls on protesters to demonstrate peacefully and on security forces to act with restraint.

"Key stakeholders in Egypt are raising real and legitimate questions, both about the substance and about the process for moving to a constitutional referendum this weekend," Nuland told a news briefing. She declined to be drawn on whether Washington believed the referendum itself should be postponed.

The turmoil has also put a big strain on the Egyptian 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 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, the first time they had appeared in the area since shortly after Mursi awarded himself the sweeping temporary powers in a move 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," 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 Muslim Brotherhood and opponents who gathered outside Mursi's presidential palace.

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

The army has told all sides to resolve their differences through dialogue. For the period of the referendum, the army has been granted powers by Mursi allowing it to arrest civilians.

In statement issued after rights groups criticized the army's new police powers, the presidency said anyone arrested by the military during the referendum would face civil rather than military courts. It said the army's new role would only last until results are declared after Saturday's referendum.

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

Islamists have urged their followers to show support for Mursi and for a referendum they feel sure of winning.

(Additional reporting by Tamim Elyan and Edmund Blair in Cairo, and Andrew Quinn in Washington; Writing by Giles Elgood; Editing by Will Waterman and David Stamp)

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Republicans open spending front in "cliff" row

WASHINGTON: US President Barack Obama and Republicans waged a new spat over spending cuts Tuesday, as time ran short and little progress was evident towards ending a vexing year-end austerity and tax crisis.

After days dueling over Obama's demand for higher taxes on the rich, each side accused the other of failing to lay out specific spending cuts, digging in to familiar positions on the showdown known as the "fiscal cliff."

If the two sides cannot agree a deal before the end of the year, taxes will go up on all Americans and automatic and savage cuts to government spending will begin, prompting fears the economy could dive into a new recession.

Top Republicans accused Obama of failing to lay out spending reductions that they say are needed for them to bargain on tax rates, saying he was running down the clock and could force America past the damaging January 1 deadline.

"The longer the White House slow-walks this process, the closer our economy gets to the fiscal cliff," Republican House speaker John Boehner said.

"We're still waiting for the White House to identify what spending cuts the president is willing to make as part of the balanced approach that he promised the American people," Boehner said on the House floor.

"Where are the president's spending cuts?" he asked, referring to Obama's proposal to pare the runaway debt by raising $1.6 trillion in new tax revenues.

Mitch McConnell, the top Senate Republican, made a similar charge, and then told reporters "we're running out of time."

At the White House, however, spokesman Jay Carney insisted that Obama had laid out clear, detailed savings, in a deficit reduction document he sent to Congress in September 2011.

"The president, unlike any other party to these negotiations, has put forward detailed spending cuts as well as detailed revenue proposals," Carney said.

Obama and Boehner met Sunday at the White House for a meeting described by both sides as "cordial."

The White House said it was deliberately not revealing details of any talks with Republicans in the hopes of not prejudicing progress.

Boehner has also remained tight-lipped, but said Tuesday that he was "hopeful that we can reach an agreement."

It was tough to tell amid radio silence from both sides whether Tuesday's posturing masked intensifying behind-the-scenes talks.

It was also unclear whether Republicans decided to switch the conversation to spending as they thought they were losing the tax issue, as polls show a majority of Americans back Obama's call to raise taxes on the rich.

If there is no deal by January 1, tax cuts passed under former president George W. Bush will expire and all Americans will get a tax hike.

Obama wants to extend the cuts for 98 percent of taxpayers, but to allow rates on the top two percent to go up from 35 percent to 39.6 percent.

Republicans want to extend the tax cuts for everyone, and make up the revenue that both sides agree is needed to chip away at the deficit by closing loopholes and capping some deductions.

Obama says that such an approach will not secure sufficient funds and there is no alternative for well off Americans paying more.

-AFP/ac

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BJP may dissolve Karnataka assembly to counter Yeddyurrappa

NEW DELHI: BJP's troubles in Karnataka are clearly growing by the day. The party's core group is scheduled to meet here on Wednesday to review the Karnataka crisis that has further deepened after former CM and Lingayat strongman B S Yeddyurrappa held a show of strength rally on Sunday to announce the launch of his breakaway outfit, the Karnataka Janata Party (KJP), in Belgaum.

The BJP top brass is likely to discuss the fate of the members of its state unit, who had openly displayed their allegiance to Yeddyurrappa on Sunday. However, the party in-charge for Karnataka Dharmendra Pradhan, who was scheduled to reach Bangalore to attend a state-level meeting on Wednesday, called off his visit on Tuesday night.

The central leadership — already weakened with BJP chief Nitin Gadkari himself under fire from within the party — is in a fix over the action to be taken against the rebels since any expulsion of the MLAs will reduce the Jagadish Shettar government to a minority.

Sunday's breakfast meeting at Yeddyurrappa's house was attended by 23 sitting MLAs, 10 MLCs, four MPs and eight ministers from the Shettar government. Yeddyurrappa had asked his loyalists not to attend the KJP's launch rally on Sunday evening, but 14 BJP MLAs and one minister (Sunil Volapure) shared the stage with the Lingayat leader in Belgaum. Gadkari is learnt to be of the view that CM Shettar should dissolve the assembly and opt for snap polls, which are slated to be in mid-2013. However, since governor H S Bhardwaj is to decide the assembly's fate, the saffron party is uncertain whether the latter will accept the government's recommendation.

If the governor asks the Shettar government to prove its majority and the CM fails to do so, Central rule could be imposed in the state, much to the discomfort for the BJP, which is keen to continue for some more months to shore up its winning prospect.

There is a distinct possibility that the ministers, including the eight who attended the KJP chief's breakfast meeting, could be dropped from the cabinet. Show cause notices could also be sent to some of the BJP rebels. But even the rebels are surprised that only the Tumkur MP, G S Basuraj, was served a show cause notice from the party so far, while others like excise minister Renukacharya, who has openly criticized the party leadership, or Yeddyurrappa's son, BJP MP B Y Raghavendra, who organized the successful Belgaum rally for KJP, were not served any notices so far. Volapure quit his ministerial post voluntarily, but the BJP leadership had to go into a huddle till 2am to drop another minister B J Puttuswamy from the cabinet.

Yeddyurrappa too is waiting for the BJP to take action against the rebels as he does not want to be seen as the hand that toppled the state government, especially when it is led by a fellow Lingayat, Shettar.

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APNewsBreak: DA investigating Texas cancer agency

AUSTIN, Texas (AP) — The Texas prosecutor responsible for investigating public corruption among state officials said Tuesday that he has opened an investigation into the state's troubled $3 billion cancer-fighting agency.

Gregg Cox, director of the Travis County district attorney's public integrity unit, told The Associated Press that an investigation has begun into the Cancer Prevention and Research Institute of Texas. The agency also is under investigation by the Texas attorney general's office after an $11 million grant to a private company did not receive the proper review.

Cox said his unit, which prosecutes crimes related to the operation of state government, is beginning its investigation not knowing "what, if any, crime occurred" at CPRIT.

His announcement came on the same day that CPRIT said its executive director had submitted his resignation letter and amid escalating scrutiny over the management of the nation's second-biggest pot of cancer research dollars.

CPRIT has not been able to focus on fighting the disease due to "wasted efforts expended in low value activities" during the past tumultuous eight months, Executive Director Bill Gimson wrote in a resignation letter dated Monday. Gimson offered to stay on until January, and the agency's board must still approve his request to step down.

Gimson has led the state agency since it launched in 2009. But he fell under mounting criticism over the recent disclosure that an $11 million award to a private company was never reviewed. It was the second time this year that a lucrative taxpayer-funded grant instigated backlash and raised questions about oversight.

"Unfortunately, I have also been placed in a situation where I feel I can no longer be effective," Gimson wrote.

The Texas attorney general's office has said it is looking into CPRIT's $11 million grant to Dallas-based Peloton Therapeutics. An internal audit performed by the agency revealed that Peloton's proposal was approved for funding in 2010 without being reviewed by an outside panel.

Gimson said last week that Peloton's funding was the result of an honest mistake that happened when the agency was still young and in the process of installing checks and balances. Agency emails surrounding the Peloton grant are no longer available, Gimson said, and state investigators said they will work to find them.

Only the National Institutes of Health doles out more cancer research dollars than CPRIT, which has awarded more than $700 million so far. The agency's former chief science officer, Nobel laureate Alfred Gilman, resigned earlier this year over a separate $20 million award that Gilman claimed received a thin review. That led some of the nation's top scientists to accuse the agency of charting a politically-driven path.

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Follow Paul J. Weber on Twitter: www.twitter.com/pauljweber

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New Evidence Suggests Biblical Flood Happened

The story of Noah's Ark and the Great Flood is one of the most famous from the Bible, and now an acclaimed underwater archaeologist thinks he has found proof that the biblical flood was actually based on real events.

In an interview with Christiane Amanpour for ABC News, Robert Ballard, one of the world's best-known underwater archaeologists, talked about his findings. His team is probing the depths of the Black Sea off the coast of Turkey in search of traces of an ancient civilization hidden underwater since the time of Noah.

Tune in to Christiane Amanpour's two-part ABC News special, "Back to the Beginning," which explores the history of the Bible from Genesis to Jesus. Part one airs on Friday, Dec. 21 and part two on Friday, Dec. 28, both starting at 9 p.m. ET on ABC. See photos from her journey HERE

Ballard's track record for finding the impossible is well known. In 1985, using a robotic submersible equipped with remote-controlled cameras, Ballard and his crew hunted down the world's most famous shipwreck, the Titanic.

Now Ballard is using even more advanced robotic technology to travel farther back in time. He is on a marine archeological mission that might support the story of Noah. He said some 12,000 years ago, much of the world was covered in ice.

"Where I live in Connecticut was ice a mile above my house, all the way back to the North Pole, about 15 million kilometers, that's a big ice cube," he said. "But then it started to melt. We're talking about the floods of our living history."

The water from the melting glaciers began to rush toward the world's oceans, Ballard said, causing floods all around the world.

"The questions is, was there a mother of all floods," Ballard said.

According to a controversial theory proposed by two Columbia University scientists, there really was one in the Black Sea region. They believe that the now-salty Black Sea was once an isolated freshwater lake surrounded by farmland, until it was flooded by an enormous wall of water from the rising Mediterranean Sea. The force of the water was two hundred times that of Niagara Falls, sweeping away everything in its path.

Fascinated by the idea, Ballard and his team decided to investigate.

"We went in there to look for the flood," he said. "Not just a slow moving, advancing rise of sea level, but a really big flood that then stayed... The land that went under stayed under."

Four hundred feet below the surface, they unearthed an ancient shoreline, proof to Ballard that a catastrophic event did happen in the Black Sea. By carbon dating shells found along the shoreline, Ballard said he believes they have established a timeline for that catastrophic event, which he estimates happened around 5,000 BC. Some experts believe this was around the time when Noah's flood could have occurred.

"It probably was a bad day," Ballard said. "At some magic moment, it broke through and flooded this place violently, and a lot of real estate, 150,000 square kilometers of land, went under."

The theory goes on to suggest that the story of this traumatic event, seared into the collective memory of the survivors, was passed down from generation to generation and eventually inspired the biblical account of Noah.

Noah is described in the Bible as a family man, a father of three, who is about to celebrate his 600th birthday.

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Egypt army given temporary power to arrest civilians

CAIRO (Reuters) - Egypt's Islamist president has given the army temporary power to arrest civilians during a constitutional referendum he is determined to push through despite the risk of bloodshed between his supporters and opponents accusing him of a power grab.

Seven people were killed and hundreds wounded last week in clashes between the Islamist Muslim Brotherhood and their critics besieging Mohamed Mursi's graffiti-daubed presidential palace. Both sides plan mass rallies on Tuesday.

The elite Republican Guard has yet to use force to keep protesters away from the palace, which it ringed with tanks, barbed wire and concrete barricades after last week's violence.

Mursi, bruised by calls for his downfall, has rescinded a November 22 decree giving him wide powers but is going ahead with a referendum on Saturday on a constitution seen by his supporters as a triumph for democracy and by many liberals as a betrayal.

A decree issued by Mursi late on Sunday gives the armed forces the power to arrest civilians and refer them to prosecutors until the announcement of the results of the referendum, which the protesters want cancelled.

Despite its limited nature, the edict will revive memories of Hosni Mubarak's emergency law, also introduced as a temporary expedient, under which military or state security courts tried thousands of political dissidents and Islamist militants.

But a military source stressed that the measure introduced by a civilian government would have a short shelf-life.

"The latest law giving the armed forces the right to arrest anyone involved in illegal actions such as burning buildings or damaging public sites is to ensure security during the referendum only," the military source said.

Presidential spokesman Yasser Ali said the committee overseeing the vote had requested the army's assistance.

"The armed forces will work within a legal framework to secure the referendum and will return (to barracks) as soon as the referendum is over," Ali said.

Protests and violence have racked Egypt since Mursi decreed himself extraordinary powers he said were needed to speed up a troubled transition since Mubarak's fall 22 months ago.

The Muslim Brotherhood has voiced anger at the Interior Ministry's failure to prevent protesters setting fire to its headquarters in Cairo and 28 of its offices elsewhere.

Critics say the draft law puts Egypt in a religious straitjacket. Whatever the outcome of the referendum, the crisis has polarized the country and presages more instability at a time when Mursi is trying to steady a fragile economy.

On Monday, he suspended planned tax increases only hours after the measures had been formally decreed, casting doubts on the government's ability to push through tough economic reforms that form part of a proposed $4.8 billion IMF loan agreement.

"VIOLENT CONFRONTATION"

Rejecting the referendum plan, opposition groups have called for mass protests on Tuesday, saying Mursi's eagerness to push the constitution through could lead to "violent confrontation".

Islamists have urged their followers to turn out "in millions" the same day in a show of support for the president and for a referendum they feel sure of winning with their loyal base and perhaps with the votes of Egyptians weary of turmoil.

The opposition National Salvation Front, led by liberals such as Mohamed ElBaradei and Amr Moussa, as well as leftist firebrand Hamdeen Sabahy, has yet to call directly for a boycott of the referendum or to urge their supporters to vote "no".

Instead it is contesting the legitimacy of the vote and of the whole process by which the constitution was drafted in an Islamist-led assembly from which their representatives withdrew.

The opposition says the document fails to embrace the diversity of 83 million Egyptians, a tenth of whom are Christians, and invites Muslim clerics to influence lawmaking.

But debate over the details has largely given way to noisy street protests and megaphone politics, keeping Egypt off balance and ill-equipped to deal with a looming economic crisis.

"Inevitability of referendum deepens divisions," was the headline in Al-Gomhuriya newspaper on Monday. Al Ahram daily wrote: "Political forces split over referendum and new decree."

Mursi issued another decree on Saturday to supersede his November 22 measure putting his own decisions beyond legal challenge until a new constitution and parliament are in place.

While he gave up extra powers as a sop to his opponents, the decisions already taken under them, such as the dismissal of a prosecutor-general appointed by Mubarak, remain intact.

"UNWELCOME" CHOICE

Lamia Kamel, a spokeswoman for former Arab League chief Moussa, said the opposition factions were still discussing whether to boycott the referendum or call for a "no" vote.

"Both paths are unwelcome because they really don't want the referendum at all," she said, but predicted a clearer opposition line if the plebiscite went ahead as planned.

A spokeswoman for ElBaradei, former head of the U.N. nuclear watchdog, said: "We do not acknowledge the referendum. The aim is to change the decision and postpone it."

Mahmoud Ghozlan, the Muslim Brotherhood's spokesman, said the opposition could stage protests, but should keep the peace.

"They are free to boycott, participate or say no, they can do what they want. The important thing is that it remains in a peaceful context to preserve the country's safety and security."

The army stepped into the conflict on Saturday, telling all sides to resolve their disputes via dialogue and warning that it would not allow Egypt to enter a "dark tunnel".

A military source said the declaration read on state media did not herald a move by the army to retake control of Egypt, which it relinquished in June after managing the transition from Mubarak's 30 years of military-backed one-man rule.

The draft constitution sets up a national defense council, in which generals will form a majority, and gives civilians some scrutiny over the army - although not enough for critics.

In August Mursi stripped the generals of sweeping powers they had grabbed when he was elected two months earlier, but has since repeatedly paid tribute to the military in public.

So far the army and police have taken a relatively passive role in the protests roiling the most populous Arab nation.

(Additional reporting by Edmund Blair and Yasmine Saleh; editing by Philippa Fletcher)

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