Mubarak clings to power

Egyptian President Hosni Mubarak clung to power yesterday as protesters took to the streets again to demand that he quit.

Mubarak ordered troops and tanks into the capital, Cairo, and other cities and imposed a curfew in an attempt to quell demonstrations that have shaken the Arab world's most populous nation, a key US ally, to the core.

Government buildings, including the ruling party headquarters, were still blazing yesterday morning after being set alight by demonstrators, who defied the curfew.

Cairo was strewn with wreckage from a day of protests in which tens of thousands of people called for an end to Mubarak's 30-year-rule, an unprecedented turn of events in the tightly controlled country.

At least 24 people were killed and 1000 wounded in clashes on Friday between the protesters and police firing rubber bullets and using tear gas and batons.

Mubarak went on television on Friday night to appeal for calm, promising to address the people's grievances. He sacked the cabinet but made clear he intended to stay in power.

The cabinet formally resigned yesterday and a new one was likely to be formed swiftly.

But about 2000 demonstrators gathered in Cairo's central Tahrir Square yesterday to press their demands that Mubarak quit, the first clear indication that those behind the street action were not satisfied by his remarks. "Go away, go away," they chanted, in full view of troops. "Peaceful, peaceful," they said.

Tanks were parked on roads leading into the square. One army armoured personnel carrier had been gutted by fire. The square was strewn with rubble, burnt tyres and charred wood that had been used as barricades overnight.

The demonstrators, many of them young urban poor and students, complain of repression, corruption and economic despair under Mubarak, who has held power since the 1981 assassination of President Anwar Sadat by Islamist soldiers.

The unrest, which follows the overthrow of Tunisian strongman Zine al-Abidine Ben Ali two weeks ago in a popular uprising, has sent shock waves through the Middle East, where other autocratic rulers may face similar challenges.

It also poses a dilemma for the US. Mubarak, 82, has been a close ally of Washington and a beneficiary of US aid for decades, justifying his autocratic rule in part by citing a danger of Islamist militancy.

Egypt plays an important role in Middle East peacemaking and was the first Arab nation to sign a peace treaty with Israel.

US President Barack Obama said he had spoken to Mubarak shortly after his speech and urged him to make good on his promises of reform.

"I want to be very clear in calling upon the Egyptian authorities to refrain from any violence against peaceful protesters," Obama said.

US officials made clear that $1.5-billion in aid was at stake.

The deployment of army troops to back up the police showed that Mubarak still has the support of the military, the country's most powerful force. But any change of sentiment among the generals could seal his fate.

The army's deployment had initially been welcomed by crowds, frustrated by heavy-handed police tactics. But damage to army vehicles showed that feeling swiftly wore off and protesters accused the army of taking the same police line.

"What happened was a betrayal of the people. We were celebrating the army's presence when they got to Tahrir. We let them through to take over from the dirty riot police and then we got fired at again," said Marzouq, a protester in his 20s.

Protesters mocked Mubarak's decision to sack his cabinet as an empty gesture. "It was never about the government, by God. It is you (Mubarak) who has to go! What you have done to the people is enough!" said one.

Protesters directed their rage by attacking public and ministry buildings, all symbols of Mubarak's government.

Mahmoud Mohammed Imam, a 26-year-old taxi-driver, said: "We were hoping that he was delivering a speech to tell us he was leaving. All he said were empty promises and lies. He appointed a new government of thieves. One thief goes and one thief comes to loot the country."

Anthony Skinner, associate director of political risk consultancy Maplecroft, said that Mubarak's conduct was reminiscent of that of Tunisia's Ben Ali, who also fired his cabinet hours before he was forced to flee.

"Mubarak is showing he is still there for now and he is trying to deflect some of the force of the process away from himself by sacking the cabinet. We will have to see how people react but I don't think it will be enough at all."

Markets were hit by the uncertainty. US stocks suffered their biggest one-day loss in nearly six months, crude oil prices surged and the dollar and US treasury debt gained as investors looked to safe havens. -