Germany drafts law on banking separation






BERLIN: Germany aims to introduce legislation on banking separation in order to protect customers' deposits from riskier areas of business, according to a draft law seen by AFP on Wednesday.

The government wants the law to come into effect in January 2014 and banks' activities to be separated by July 2015.

It will only apply to institutions with balances sheets over 1.0 billion euros or with risky positions worth 20 pe rcent of the balance sheet value, according to the law.

The rules would affect Germany's two biggest banks, Deutsche Bank and Commerzbank, as well as regional banking giant Landesbank Baden-Wuerttemberg (LBBW).

Banking separation is an idea floated by the head of the Finnish central bank and European Central Bank governing council member Erkki Liikanen as a measure for reducing risk in the banking sector.

But one of Deutsche Bank's co-chief executives, Anshu Jain, has repeatedly slammed the idea, saying it would "greatly harm the German economy and German companies."

He argues that if Deutsche Bank can no longer use deposits to refinance its activities in investment banking, the refinancing costs would automatically rise and that would narrow the financing possibilities of major companies.

At the same time, banks with high deposits would find it difficult to find attractive investments for customers, Jain said.

- AFP/jc



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Prithviraj Chavan seeks additional Rs 2,270cr drought fund for Maharashtra

NEW DELHI: Chief minister PrithvirajChavan has sought an additional financial assistance of Rs 2,270 crore from the Centre to overcome the drought crisis in the state.

Chavan, who was in Delhi since January 28, has made the demand to Prime Minister Manmohan Singh. The CM has also sought concessions in time period and funds provided by the Centre for fodder camps in drought-hit areas. He also met Congress leader Rahul Gandhi and union petroleum minister VeerappaMoily with a demand to remove fishermen and state transport buses from the category of "bulk consumers" of diesel.

Chavan sought lifting of moratorium for port development and certain other activities in the Sindhudurg belt. He also reiterated the state's demand for withdrawal of a union environment ministry's order imposing restrictions on high-rise activity in coastal areas in Mumbai.

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APNewsBreak: EPA moves to ban some rodent poisons


WASHINGTON (AP) — The Environmental Protection Agency is moving to ban the sale of a dozen rat and mouse poisons sold under the popular D-Con brand in an effort to protect children and pets.


The agency said Wednesday it hopes to reduce the thousands of accidental exposures that occur every year from rodent-control products. Children and pets are at risk for exposure because the products typically are placed on floors.


The agency had targeted a handful of companies two years ago, saying they needed to develop new products that are safer for children, pets and wildlife. All but Reckitt Benckiser Inc., manufacturer of D-Con, did so.


The company will have at least 30 days to request a hearing before an administrative law judge. If no hearing is requested, the ban will take effect.


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Palin and Fox Part Ways, but Is She Really Over?













Sarah Palin's break up with Fox News should not have been, well, breaking news, as she had publicly complained in August on Facebook that the network had canceled her appearances at the Republican National Convention. And going back even further, Palin didn't give Fox the scoop in October 2011 when she announced she wasn't going to run for president. Still, the news of the Fox split overtook Twitter and the news cycle by storm.


One thing I've learned in my years covering Palin, which began on Aug. 29, 2008, when Sen. John McCain stunned the country by selecting her as his running mate: Everyone has an opinion on whatever she does, and she can get clicks and coverage like no one else.


The prevailing theory now is that since Palin no longer has a megaphone like Fox News through which she can blast her opinions, her moment is now officially over.


The 'Ends' of Sarah Palin


It might be true, but there have been so many "ends of Sarah Palin" that it's almost too hard to keep track of them all. She was over when she lost the 2008 campaign, she was over when she quit the Alaska governorship, she was over when she decided to do a reality show, she was over when she decided not to run for president, and now again, she's over because her appearances on Fox News are over.












Secret Service Scandal: Fired Agent 'Checked Out' Sarah Palin Watch Video





I, for one, did think Palin would lose her relevancy when she quit the Alaska governorship, and also when she didn't run for president. But in both cases, people who both love her and hate her just couldn't get enough information about her, and she still got an incredible amount of news coverage. Her voice was heard loud and clear, even if it blasted only from her Facebook posts. That's just another example of what she's been able to pull off that others who've come before or after just haven't. Palin's been written off from Day One, but like a boomerang, she just keeps coming back.


Yes, she wasn't really helpful to Mitt Romney's campaign, but she also never really explicitly backed him. And what an odd pair they would have made if she had. In her interview last weekend with Steve Bannon, the executive chairman of Breitbart News who made "The Undefeated," the positive 2011 movie about her, she said, "The problem is that some on the right are now skittish because of the lost 2012 election. They shouldn't be. Conservatism didn't lose. A moderate Republican candidate lost after he was perceived to alienate working-class Reagan Democrats and independent voters." Not a sign that she wants to rethink some of her policy points, or that she will retreat into the shadows.


Another Possible TV Home


I think more likely than her fading away (we all still cover every eyebrow-raising Facebook post of hers) is that she will possibly find an on-air home elsewhere, at somewhere like CNN. She told Breitbart.com that she "encourages others to step out in faith, jump out of the comfort zone, and broaden our reach as believers in American exceptionalism. That means broadening our audience. I'm taking my own advice here as I free up opportunities to share more broadly the message of the beauty of freedom and the imperative of defending our republic and restoring this most exceptional nation. We can't just preach to the choir; the message of liberty and true hope must be understood by a larger audience."


Later in the interview, she added, "I know the country needs more truth-telling in the media, and I'm willing to do that. So, we shall see."






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Army warns unrest pushing Egypt to the brink


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


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


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


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


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


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


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


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


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


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


DEEPLY POLARISED


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


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


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


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


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


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


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


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


The police have been facing "unprecedented attacks accompanied by the appearance of groups that pursue violence and whose members possess different types of weapons", the state news agency reported, quoting the Interior Ministry spokesman.


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


WARY MILITARY


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


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


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


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


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


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


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


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


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


The presidency said a committee would be formed to look at changes to the constitution, but it ruled out changing the government before the parliamentary election.


Mursi's pushing through last month of a new constitution which critics see as too Islamic remains a bone of contention.


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



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78 bodies found 'executed' in Syria river






ALEPPO: The bodies of 78 young men, all executed with a single gunshot, were found Tuesday in a river in Aleppo city, adding to the grim list of massacres committed during Syria's 22-month conflict.

The gruesome discovery came ahead of a briefing by peace envoy Lakhdar Brahimi to the UN Security Council on the uprising, which the United Nations says has left more than 60,000 people dead.

Abu Seif, a rebel fighter, said 78 bodies were retrieved from the Quweiq River and that 30 more were still in the waters but out of reach because of regime snipers.

"The regime threw them into the river so that they would arrive in an area under our control, so the people would think we killed them," he said.

But a security official accused "terrorists," the regime term for the rebels, of the killings, adding the victims were residents kidnapped from the opposition-held district of Bustan al-Qasr.

Their families had tried to negotiate their release before they were killed overnight, he said.

There was no immediate claim of responsibility, but the official SANA news agency said the jihadist Al-Nusra Front carried out the executions.

"Terrorist groups from Al-Nusra Front in Aleppo carried out a mass execution of dozens of abducted people and threw their bodies in the Quweiq River," the agency said.

Al-Nusra, which first gained notoriety for its suicide bombings in Syria, has evolved into a formidable fighting force leading attacks on battlefronts throughout the embattled country.

Its extremist tactics and suspected affiliation to the Al-Qaeda offshoot in Iraq have landed it on the US list of terrorist organisations.

The Syrian Observatory for Human Rights gave a toll of 65 bodies but warned the figure could rise significantly.

"They are in their 20s and were executed by a bullet to the head. Most of them had their hands tied behind their backs and were in civilian clothes," said the watchdog.

The scene on the bank of the Quweiq was grim, as muddied corpses are dredged out of the water and hundreds of distressed people flocked around to see if they could spot among the bodies a father, a brother, a son or a husband.

"My brother disappeared weeks ago when he was crossing (through) the regime-held zone, and we don't know where he is or what has become of him," said Mohammed Abdel Aziz.

Volunteers helped place on a truck the bodies which were then taken to a school where they were laid out and covered in a blue cloth.

"We do not know who they are -- they were not carrying papers," a volunteer said as an AFP correspondent counted at least 15 bodies on one truck.

A number was placed next to each body and their faces were left uncovered to allow the identification by relatives at the school, where the nauseating stench of death lingers.

"There are those who drowned because they were shot in the legs or abdomen before being thrown into the water," said a nurse, noting some victims may have been killed as far back as three days ago.

The 129-kilometre river originates in Turkey to the north and flows to the southwest of Aleppo, traversing both regime and rebel-held areas.

"This is not the first time that we have found the bodies of people executed, but so many, never," rebel fighter Abu Anas said as he examined the body of a boy of about 12 with a gunshot wound to the back of the neck.

"Jews would not have done this. Their only crime was that they were residents of Bustan al-Qasr and they were Sunni Muslims," a man cried out as he looked down at several of the bodies laying on the pavement waiting to be identified.

Violence raged elsewhere in Aleppo province, where seven children were killed in air strikes on the town of Safireh, the Observatory said, giving a toll of 91 people killed across Syria on Tuesday.

And in Damascus a member of parliament was seriously injured when a explosive device strapped to his car exploded, the Observatory said.

The bloodshed came as rebels captured a vital bridge across the Euphrates River in Deir Ezzor city, largely severing an army supply route to Hasakeh province further north.

The nearby regime security headquarters and a smaller bridge were also captured, prompting retaliatory air strikes on the critical crossings.

"These gains in Deir Ezzor are very important because this strategic city is the gateway to a region rich in oil and gas resources," said Observatory director Rami Abdel Rahman.

"If the rebels continue to progress and gain control of what is left of military-held positions... it will be the first major city to fall into the hands of the rebels," said Abdel Rahman.

On the humanitarian front charity organisations on Tuesday pledged US$182 million for Syrians displaced at home or who have fled abroad because of the conflict on the eve of a donors conference in Kuwait.

US President Barack Obama announced an extra US$155 million dollars to aid refugees fleeing what he said was "barbarism" propagated by the government of Syrian President Bashar al-Assad.

- AFP/jc



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Shah Rukh given security after magazine comments

NEW DELHI: Even as India and Pakistan sparred over Shah Rukh Khan's comments in a magazine recently, security agencies said there was no threat to the superstar from terror elements. In fact, his security was withdrawn three months ago. However, following the comments, he has been given two constables in rotation to guard him against possible "local reprisal".

Khan was first provided security in 2008 following an email threat allegedly from Indian Mujahideen. At that time, he was guarded by four constables in rotation (four during the day and four during the night) provided by Mumbai Police's protection branch.

In early 2010, his security was reviewed and downgraded to two constables in rotation, as there were no fresh threats against him following the 2008 mail. The two-constable security was retained as a preventive measure until the threat was completely ruled out, sources said.

A fresh assessment was conducted in October 2012 and Khan's security was completely withdrawn in November. "There was no fresh threat nor any inputs from intelligence agencies indicating any threat to his life from internal or external forces. So it was decided that his security may be withdrawn," an officer from Mumbai's security establishment said.

However, following his comments in a magazine where the superstar alluded to his religious identity being politicized by certain outfits and the harassment he faced in certain countries because of being a Muslim, Mumbai Police restored his security because of local reasons. "We feared his comments could have reactions from local outfits. So, as a precautionary measure, we have restored his security temporarily four days ago."

Sources said the security may be removed after the local threat dissipates.

Following Khan's comments, LeT chief Hafiz Saeed had invited him to live in Pakistan while the country's interior minister Rehman Malik asked India to provide security to the star on Tuesday. A security officer clarified, "Shah Rukh's security was restored much before Malik's comments. In any case, security is provided after local threat assessment and not on the basis of what anyone inside or outside the country says."

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Soldier looks forward to driving with new arms


BALTIMORE (AP) — A soldier who lost all four limbs in a roadside bombing in Iraq says he's looking forward to driving and swimming with new arms after undergoing a double-arm transplant.


"I just want to get the most out of these arms, and just as goals come up, knock them down and take it absolutely as far as I can," Brendan Marrocco said Tuesday.


The 26-year-old New Yorker spoke at a news conference at Johns Hopkins Hospital, where he was joined by surgeons who performed the operation.


After he was wounded, Marrocco said, he felt fine using prosthetic legs, but he hated not having arms.


"You talk with your hands, you do everything with your hands, basically, and when you don't have that, you're kind of lost for a while," he said.


Marrocco said his chief desire is to drive the black Dodge Charger that's been sitting in his garage for three years.


"I used to love to drive," he said. "I'm really looking forward to just getting back to that, and just becoming an athlete again."


Although he doesn't expect to excel at soccer, his favorite sport, Marrocco said he'd like to swim and compete in a marathon using a handcycle.


Marrocco joked that military service members sometimes regard themselves as poorly paid professional athletes. His good humor and optimism are among the qualities doctors cited as signs he will recover much of his arm and hand use in two to three years.


"He's a young man with a tremendous amount of hope, and he's stubborn — stubborn in a good way," said Dr. Jaimie Shores, the hospital's clinical director of hand transplantation. "I think the sky's the limit."


Shores said Marrocco has already been trying to use his hands, although he lacks feeling in the fingers, and he's eager to do more as the slow-growing nerves and muscles mend.


"I suspect that he will be using his hands for just about everything as we let him start trying to do more and more. Right now, we're the ones really kind of holding him back at this point," Shores said.


The procedure was only the seventh double-hand or double-arm transplant ever done in the United States.


The infantryman was injured by a roadside bomb in 2009. He is the first soldier to survive losing all four limbs in the Iraq War.


Marrocco also received bone marrow from the same donor to minimize the medicine needed to prevent rejection. He said he didn't know much about the donor but "I'm humbled by their gift."


The 13-hour operation on Dec. 18 was led by Dr. W.P. Andrew Lee, plastic surgery chief at Hopkins.


Marrocco was being released from the hospital Tuesday but will receive intensive therapy for two years at Hopkins and then at Walter Reed National Military Medical Center in Bethesda.


After a major surgery, human nerves regenerate at a rate of an inch per month, Lee said.


"The progress will be slow, but the outcome will be rewarding," he added.


___


Associated Press Writer David Dishneau contributed to this story from Hagerstown, Md.


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Boy Scouts to Discuss Lifting National Gay Ban













The Boy Scouts of America, under growing pressure from troops across the country to end its 100-year-old ban on gay leaders and members, said today it is "discussing" ending its national discrimination policy, leaving such decisions to the discretion of individual troops.


"Currently, the BSA is discussing potentially removing the national membership restriction regarding sexual orientation," BSA spokesman Deron Smith said in a prepared statement.
"This would mean there would no longer be any national policy regarding sexual orientation, and the chartered organizations that oversee and deliver Scouting would accept membership and select leaders consistent with each organization's mission, principles, or religious beliefs."


Individual members and parents would be able to set policy guidelines as they see fit when organizing their troops and leadership, according to the statement.


The BSA will review the matter at its regularly scheduled board meeting next week, Smith said.


Rich Ferraro, a spokesman for the gay advocacy group GLAAD, pointed to two factors upon hearing the announcement today.


"I think it was a mix of the change.org petitions and the corporate sponsors that had dropped out," Ferraro said.


Last September, the Intel Foundation announced it would end $700,000 in annual donations to the Boys Scouts. The Merck Foundation also severed its ties in December.


"UPS adopted a new policy that stated that grantees had to follow their nondiscrimination policy," Ferraro said. "There were also more in the coming weeks that were dropping their support of Scouts."










Several U.S. councils have tried to buck the longtime ban, putting the issue to a vote with their local parents in recent months, including a Boy Scout troop in California and a Cub troop in Maryland.


"I am extraordinarily excited," said Eagle Scout Zach Wahls, who has spent the past seven months heading up Scouts for Equality, which advocates for ending the ban. "It's a positive step, and big change.


"This is absolutely a step in the right direction, but we have a long way to go," Wahls, 21, said today. "Discrimination has no place in scouting."


Wahls, whose parents are lesbians, was a YouTube sensation two years ago when he testified before the Iowa legislature on same-sex marriage.


He delivered a petition in June from change.org with more than 1 million signatures, demanding that the Boy Scouts end the ban on openly gay membership.


"Once an Eagle Scout, always an Eagle Scout," Wahls said at the time. "I am unwilling to quit because of a single policy. They do so many things right."


The policy change under discussion would allow individual groups -- religious, civic or educational ones -- to determine their own rules.


"The national organization has to make it clear to all units that being anti-gay is unacceptable," said Wahls, who identifies as straight. "What happens next is little unclear, but it seems the Boy Scouts of America is starting to thaw on this issue."


BSA's Smith said, "The Boy Scouts would not, under any circumstances, dictate a position to units, members, or parents. Under this proposed policy, the BSA would not require any chartered organization to act in ways inconsistent with that organization's mission, principles or religious beliefs."


In October, California Boy Scout
Ryan Andresen of Moraga, Calif., was denied the coveted Eagle Scout award, even though he had completed all the requirements because he is gay.


His mom, Karen Andresen, was so upset by the troop's decision that she posted a petition on change.org.


A local troop committee approved his award, but the council did not send it on to the national organization because of the gay ban.


Advocacy groups have been vocal on the issue.


"The Boy Scouts of America have heard from scouts, corporations and millions of Americans that discriminating against gay scouts and scout leaders is wrong," GLAAD President Herndon Graddick said. "Scouting is a valuable institution and this change will only strengthen its core principles of fairness and respect."


Until now, the Boy Scouts have stood firm on the issue, even taking it to the highest court.






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Violence flares in Egypt after emergency law imposed


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


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


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


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


Although Islamists have won parliamentary and presidential elections, the disparate opposition has since united against Mursi. Late last year he moved to expand his powers and pushed a constitution with a perceived Islamist bias through a referendum. The moves were punctuated by street violence.


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


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


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


"The people want to bring down the regime," they chanted Alexandria. "Leave means go, and don't say no!" they shouted.


VOLLEYS OF TEARGAS


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


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


In Cairo on Monday, police fired volleys of teargas at stone-throwing protesters near Tahrir Square, cauldron of the anti-Mubarak uprising. A car was torched on a nearby bridge.


A 46-year-old bystander was killed by a gunshot early on Monday, a security source said. It was not clear who fired.


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


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


As part of emergency measures, a daily curfew will be imposed on the three canal cities from 9 p.m. (1900 GMT) to 6 a.m. (0400 GMT). Residents have said they will defy it.


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


He offered condolences to families of victims. But his invitation to Islamist allies and their opponents to hold a national dialogue was spurned by the main opposition National Salvation Front coalition. Those who accepted were mostly Mursi's supporters or sympathizers.


SENDING A MESSAGE


The Front rejected the offer as "cosmetic and not substantive" and set conditions for any future meeting that have not been met in the past, such as forming a government of national unity. They also demanded that Mursi declare himself responsible for the bloodshed.


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


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


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


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


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


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


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


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


(Additional reporting by Yasmine Saleh in Cairo, Yusri Mohamed in Ismailia and Abdelrahman Youssef in Alexandria; Editing by Giles Elgood, Peter Millership and Alastair Macdonald)



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