India misguided, paranoid over China: Guha

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

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

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

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

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

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Smokers celebrate as Wash. legalizes marijuana

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

___

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

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Australian DJs Behind Prank Call Under Fire

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

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

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

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

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

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

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

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

Nurse Duped by 'Queen's' Prank Call Found Dead Watch Video

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

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

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

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

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

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

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

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

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

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

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

The hospital apologized for the mistake.

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

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

The radio station also apologized for the prank call.

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Protesters surge around Egypt's presidential palace

CAIRO (Reuters) - Tens of thousands of Egyptian protesters surged around the presidential palace on Friday and the opposition rejected President Mohamed Mursi's call for dialogue to end a crisis that has polarized the nation and sparked deadly clashes.

The Islamist leader's deputy said he could delay a December 15 referendum on a constitution that liberals opposed, although the concession only partly meets a list of opposition demands that include scrapping a decree that expanded Mursi's powers.

"The people want the downfall of the regime" and "Leave, leave," crowds chanted after bursting through barbed wire barricades and climbing on tanks guarding the palace of Egypt's first freely elected president.

Their slogans echoed those used in a popular revolt that toppled Mursi's predecessor Hosni Mubarak in February 2011.

Vice President Mahmoud Mekky said in a statement sent to local media that the president was prepared to postpone the referendum if that could be done without legal challenge.

The dialogue meeting was expected to go ahead on Saturday in the absence of most opposition factions. "Tomorrow everything will be on the table," a presidential source said of the talks.

The opposition has demanded that Mursi rescind a November 22 decree giving himself wide powers and delay the vote set for December 15 on a constitution drafted by an Islamist-led assembly which they say fails to meet the aspirations of all Egyptians.

The state news agency reported that the election committee had postponed the start of voting for Egyptians abroad until Wednesday, instead of Saturday as planned. It did not say whether this would affect the timing of voting in Egypt.

Ahmed Said, leader of the liberal Free Egyptians Party, told Reuters that delaying expatriate voting was made to seem like a concession but would not change the opposition's stance.

He said the core opposition demand was to freeze Mursi's decree and "to reconsider the formation and structure of the constituent assembly", not simply to postpone the referendum.

The opposition organized marches converging on the palace which elite Republican Guard units had ringed with tanks and barbed wire on Thursday after violence between supporters and opponents of Mursi killed seven people and wounded 350.

Islamists, who had obeyed a military order for demonstrators to leave the palace environs, held funerals on Friday at Cairo's al-Azhar mosque for six Mursi partisans who were among the dead. "With our blood and souls, we sacrifice to Islam," they chanted.

"ARM-TWISTING"

In a speech late on Thursday, Mursi had refused to retract his November 22 decree or cancel the referendum on the constitution, but offered talks on the way forward after the referendum.

The National Salvation Front, the main opposition coalition, said it would not join the dialogue. The Front's coordinator, Mohamed ElBaradei, a Nobel peace laureate, dismissed the offer as "arm-twisting and imposition of a fait accompli".

Murad Ali, spokesman of the Brotherhood's Freedom and Justice Party (FJP), said opposition reactions were sad: "What exit to this crisis do they have other than dialogue?" he asked.

Mursi's decree giving himself extra powers sparked the worst political crisis since he took office in June and set off renewed unrest that is dimming Egypt's hopes of stability and economic recovery after nearly two years of turmoil following the overthrow of Mubarak, a military-backed strongman.

The turmoil has exposed contrasting visions for Egypt, one held by Islamists, who were suppressed for decades by the army, and another by their rivals, who fear religious conservatives want to squeeze out other voices and restrict social freedoms.

Caught in the middle are many of Egypt's 83 million people who are desperate for an end to political turbulence threatening their precarious livelihoods in an economy under severe strain.

"We are so tired, by God," said Mohamed Ali, a laborer. "I did not vote for Mursi nor anyone else. I only care about bringing food to my family, but I haven't had work for a week."

ECONOMIC PAIN

A long political standoff will make it harder for Mursi's government to tackle the crushing budget deficit and stave off a balance of payments crisis. Austerity measures, especially cuts in costly fuel subsidies, seem inevitable to meet the terms of a $4.8-billion IMF loan that Egypt hopes to clinch this month.

U.S. President Barack Obama told Mursi on Thursday of his "deep concern" about casualties in this week's clashes and said "dialogue should occur without preconditions".

The upheaval in the most populous Arab nation worries the United States, which has given billions of dollars in military and other aid since Egypt made peace with Israel in 1979.

The conflict between Islamists and opponents who each believe the other is twisting the democratic rules to thwart them has poisoned the political atmosphere in Egypt.

The Muslim Brotherhood's spokesman, Mahmoud Ghozlan, told Reuters that if the opposition shunned the dialogue "it shows that their intention is to remove Mursi from the presidency and not to cancel the decree or the constitution as they claim".

Ayman Mohamed, 29, a protester at the palace, said Mursi should scrap the draft constitution and heed popular demands.

"He is the president of the republic. He can't just work for the Muslim Brotherhood," Mohamed said of the eight-decade-old Islamist movement that propelled Mursi from obscurity to power.

(Additional reporting by Omar Fahmy; Writing by Edmund Blair and Alistair Lyon; Editing by Giles Elgood)

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Lagarde says 'fiscal cliff' threatens US supremacy

WASHINGTON: IMF chief Christine Lagarde said Friday the looming "fiscal cliff" in the United States threatens the country's international supremacy and the fragile global recovery.

In an interview with BBC World News, Lagarde noted the US fiscal cliff, a combination of severe tax increases and spending cuts due in January, would probably wipe out growth in the world's largest economy.

"The real issues are, in a way, the supremacy of the United States and its leadership role in the world," said the managing director of the International Monetary Fund.

"To make sure that that leadership endures, the uncertainty has to be removed because uncertainty fuels doubt as to that leadership."

With the deadline fast approaching, President Barack Obama and congressional Republicans remain at loggerheads in talks to find a longer-term deficit reduction plan that would avert the cliff.

"It's not purely a political issue, it's not ideological, it's broader than that. It really addresses the role of the United States in the world from a geopolitical and economic point of view," said Lagarde, according to extracts of the broadcast interview.

- AFP/fa

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Clash averted between UP, Haryana farmers

SONIPAT: An ongoing dispute over possession of agricultural land between two villages of Haryana and Uttar Pradesh threatened to turn violent on Friday. The tension, however, was eased after timely intervention by police and revenue officials from the two states, who have now decided to hold a joint meeting on December 12 to settle the dispute.

Tension had been brewing between farmers of Jajal village in Sonepat and Nivada village of Baghpat district in Uttar Pradesh for the past three days over possession of agricultural land along Yamuna river. The farmers of Jalal village alleged that they had completed wheat sowing in around 100 acres of land adjoining Yamuna river falling within the revenue boundary of the village. On Wednesday, farmers from Nivada, carrying firearms, ploughed the fields to take possession of the land. The situation worsened on Thursday when Nivada farmers again did the same thing.

The affected farmers were planning to retaliate when Sonipat district administration got information and rushed to mediate between the two groups. While some youths from Jalal wanted to hit back, farmers instead informed the SDM and police authorities about the matter.

After receiving information about face-off, Sonepat SDM Jag Niwas and DSP Rakam Singh along with tehsildar Naresh, SHO Sultan Singh and police personnel reached the spot while SDM of Baghpat in UP too arrived at the spot to discuss the issue. Sonipat SDM said the two groups have decided to hold a meeting on December 12 to resolve the dispute. "The farmers of both the villages would also attend the meeting and till then have been asked not to take any action in haste," he added.

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Smokers celebrate as Wash. legalizes marijuana

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

___

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

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Nurse Duped by 'Queen's' Prank Call Found Dead

The hospital receptionist who was hoaxed by a prank call from a DJ claiming to be the queen asking about Kate Middleton has been found dead.

"It is with very deep sadness that we confirm the tragic death of a member of our nursing staff," the hospital said in a statement released today.

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

"We can confirm that Jacintha was recently the victim of a hoax call to the hospital," the statement said. "The hospital had been supporting her throughout this difficult time."

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

"She will be greatly missed," the hospital said.

Earlier this week, the hospital fell for a prank call from an Australian radio show where the hosts pretended to be Queen Elizabeth II and Prince Charles looking to speak to Kate Middleton, who had been admitted to the hospital for her pregnancy. The call was put through to a second nurse who told the royal impersonators that Kate was "quite stable" and hadn't "had any retching."

Kate Middleton Leaves Hospital After Extreme Morning Sickness Watch Video

Kate Middleton Pregnant: Royal Couple Expecting Watch Video

Kate Middleton Pregnant: Hospital Stay Forces Announcement Watch Video

Saldanha was the nurse who transferred the impersonators to the second nurse who gave information about Kate's condition.

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

"Their Royal Highnesses were looked after so wonderfully well at all times by everybody at King Edward VII Hospital, and their thoughts and prayers are with Jacintha Saldanha's family, friends and colleagues at this very sad time," the statement said.

Police were called to an address near the hospital at about 9:35 a.m. GT today to "reports of a woman found unconscious," according to a statement from Scotland Yard.

The woman was pronounced dead at the scene. "Inquiries continue to establish the circumstances of the incident. Next of kin have been informed," the statement said.

Circumstances of the death being investigated, but are not suspicious at this stage, according to police.

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

The Tuesday morning prank call came from Australian DJ's Mel Greig and Michael Christian. They impersonated the royals, complete with exaggerated accents. They even enlisted two co-workers to bark like the queen's pet corgis.

The Sydney radio station, 2DayFM, could not be immediately reached for comment.

The Twitter accounts of both radio personalities have been deactivated, but it is unknown when the accounts were shut down. The DJ's are being heavily criticized on Twitter, with many people calling for them to resign or be fired.

The queen impersonator asked for her granddaughter and was promptly transferred to another hospital employee.

"I'm just after my granddaughter, Kate. I want to see how her little tummy bug is going," the radio host said, suppressing laughter.

"She's sleeping at the moment, and she has had an uneventful night and sleep is good for her," the nurse said. "She's been getting some fluids to rehydrate her because she was quite dehydrated when she came in, but she's stable at the moment."

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Egypt demonstrators reject Mursi call for dialogue

CAIRO (Reuters) - Demonstrators rejected a call from Egypt's Islamist President Mohamed Mursi for a national dialogue after deadly clashes around his palace, demanding the "downfall of the regime" - the chant that brought down Hosni Mubarak.

Mursi said in a televised speech late on Thursday that plans were on track for a referendum on a new constitution on December 15 despite clashes that killed seven people. He proposed a meeting on Saturday with political leaders, "revolutionary youth" and legal figures to discuss the way forward after that.

But a leading activist group rejected the offer, and fresh demonstrations were called for Friday.

The "April 6" movement, which played a prominent role in igniting the revolt against Mubarak said on its Facebook page that Friday's protests would deliver a "red card" to Mursi.

Egypt has been plunged into turmoil since Mursi issued a decree on November 22 awarding himself wide powers and shielding his decisions from judicial review.

His Islamist supporters say the decree was necessary to prevent Mubarak-era judges from interfering with reforms. A constitution drawn up by a body dominated by Islamists is due to be put to a referendum next week.

The opposition has demanded that Mursi scrap his decree, postpone the referendum and redraft the constitution.

In his address, Mursi said: "I call for a full, productive dialogue with all figures and heads of parties, revolutionary youth and senior legal figures to meet this Saturday."

Several thousand opposition protesters near the palace waved their shoes in derision after his speech and shouted "Killer, killer" and "We won't go, he will go" - another of the slogans used against Mubarak in last year's revolt.

The Cairo headquarters of the Muslim Brotherhood, the group that propelled Mursi to victory in a June election, was set ablaze. Other offices of its political party were attacked.

TENTATIVE CONCESSION

The United States, worried about the stability of an Arab partner which has a peace deal with Israel and which receives $1.3 billion a year in U.S. military aid, had urged dialogue.

Mursi said his entire decree would lapse after the constitutional referendum, regardless of its result.

He said a new constituent assembly would be formed to redraft the constitution if Egyptians rejected the one written in the past six months.

The Republican Guard, an elite unit whose duties include protecting the presidential palace, restored peace on Thursday after a night of violence outside the palace, ordering rival demonstrators to leave by mid-afternoon.

Mursi supporters withdrew, but opposition protesters remained, kept away by a barbed wire barricade guarded by tanks. By evening their numbers had swelled to several thousand.

Thousands of supporters and opponents of Mursi had fought well into Thursday's early hours, using rocks, petrol bombs and guns. Officials said 350 were wounded in the violence. Six of the dead were Mursi supporters, the Muslim Brotherhood said.

Opposition groups have called for protests after Friday prayers aimed at "the downfall of the militia regime", a dig at what they see as the Brotherhood's organized street muscle.

A communique from a leftist group urged protesters to gather at mosques and squares across Egypt, and to stage marches in Cairo and its sister city Giza, converging on the presidential palace. "Egyptian blood is a red line," the communique said.

Hardline Islamist Salafis also summoned their supporters to protest against what they consider biased coverage of the crisis by some private Egyptian satellite television channels.

Since Mursi issued his decree, six of his advisers have resigned. Essam al-Amir, the director of state television, quit on Thursday, as did a Christian official at the presidency.

The Brotherhood's supreme guide, Mohamed Badie, called for unity, saying divisions "only serve the nation's enemies".

The Islamists, who have won presidential and parliamentary elections since Mubarak was overthrown, are confident they can win the referendum and the parliamentary election to follow.

As well as relying on his Brotherhood power base, Mursi may also tap into a popular yearning for stability and economic revival after almost two years of political turmoil.

Egypt's pound hit an eight-year low on Thursday, reversing gains made on hopes that a $4.8 billion IMF loan would stabilize the economy. The stock market fell 4.6 percent.

(Additional reporting by Edmund Blair and Marwa Awad; Writing by Alistair Lyon and Peter Graff; Editing by Louise Ireland)

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Sandy, cliff point to bleak November US jobs data

WASHINGTON: The powerful storm that landed a blow to the US economy last month and worries over the fast-approaching "fiscal cliff" point to a bleak November reading from the Labor Department on Friday.

Superstorm Sandy, which pummeled the northeastern coast in late October and early November, shutting down New York and other major cities, was expected to slash job creation in half.

"The November payrolls data will be distorted by the effects of Superstorm Sandy," said Patrick O'Hare at Briefing.com.

On Thursday, the Labor Department's weekly report on unemployment insurance claims showed first-time claims, a sign of the pace of layoffs, fell back to a more normal 370,000 last week after three weeks of elevated readings in the aftermath of Sandy.

The latest week's claims data does not feed into the Labor Department's November report, which is based on numbers collected earlier in the month.

The prior claims had climbed almost by 100,000 within two weeks of Sandy's landfall, said Lindsey Piegza of FTN Financial.

"There will likely be a profound, negative impact on November payroll creation shaving up to 50 percent off last month's gains," Piegza said.

In October, the US economy added 171,000 jobs, still below the 10-month average of 157,000, while the unemployment rate ticked up to 7.9 percent from 7.8 percent in September due to an increase in the labor force.

For November, analysts on average are forecasting 90,000 net new jobs and the jobless rate at 8.0 percent.

The fast-approaching "fiscal cliff," the combination of sharp federal government tax increases and spending cuts due in January, has also kept businesses cautious about adding jobs.

Concerns are rampant that politicians will fail to find a compromise on longer term budget-deficit reduction to avoid the fiscal shock that economists say will jolt the economy back into recession.

According to a private-sector survey by Challenger, Gray & Christmas released Thursday, job cuts increased for the third consecutive month in November as corporate employers announced plans to lay off more than 57,000 workers worldwide.

That included the 18,500 employees of Twinkie-maker Hostess Brands, the national bakery which filed for bankruptcy.

The Challenger data suggests that announced corporate layoffs are rising and rising faster than any seasonal pattern can account for, warned Robert Brusca at FAO Economics.

On Wednesday, payrolls firm ADP reported business hiring slowed to 118,000 jobs in November from 157,000 in October, estimating Superstorm Sandy had sliced 86,000 jobs off payrolls.

Earlier in the week, the Institute for Supply Management reported employment in the manufacturing and services sectors took a hit in November.

"The lack of meaningful progress on the jobs front means the Fed will likely announce new stimulus measures at next week's meeting," said Sal Guatieri of BMO Capital Markets.

The central bank will hold its last policy-setting Federal Open Market Committee meeting of the year on Tuesday and Wednesday.

Fed Chairman Ben Bernanke has highlighted that the unemployment rate remains "well above" what Fed officials want to see, justifying maintaining a loose monetary policy.

With the jobs market still weak, the FOMC is expected to push ahead with more outright bond purchases to push down long-term interest rates when it meets.

-AFP/ac

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