Egyptian protesters were camped
out in central Cairo on Monday and vowed to stay until they had
toppled President Hosni Mubarak, whose fate appeared to hang on
the military as pressure mounted from the street and abroad.
"The army has to choose between Egypt and Mubarak," read one
banner in Cairo's Tahrir Square, where demonstrators shared food
with soldiers sent to restore order after violent protests shook
Mubarak's 30-year rule to its core.
By dawn, some hardy demonstrators were still camped in the
Square, which was covered in early morning mist. They had
already begun chants of "Down, Down, Mubarak".
Six days of unrest has killed more than 100 people but the
two sides have reached a stalemate. Protesters refuse to go,
while the army is not moving them. The longer protesters stay
unchallenged, the more untenable Mubarak's position seems.
Protesters in Tahrir Square — epicentre of the earthquake
that has sent shudders through the Middle East and among global
investors — have dismissed Mubarak's appointment of military
men as his vice president and prime minister.
His promises of economic reform to address public anger at
rising prices, unemployment and huge gap between rich and poor
have failed to halt their broader calls for a political sweep
out of Mubarak and his associates.
Protesters have called for a general strike on Monday and
what they bill as a "protest of the millions" march on Tuesday,
to press their demands for democracy which could spell the end
for the military establishment which has run post-colonial Egypt
since the 1950s.
The United States, an ally which has poured billions of
dollars of aid into Egypt since Mubarak came to power, stopped
just short of saying openly that it wanted him out. Officials
including President Barack Obama and Secretary of State Hillary
Clinton spoke about "an orderly transition".
A senior U.S. administration official, who declined to be
identified, said the feeling among Obama's national security
aides was that Mubarak's time had passed, but it was up to
Egyptians to determine what happens next.
Mubarak, a former air force chief, has turned to his
military commanders, meeting them on Sunday. They seem to hold
his future in their hands. Egypt's defence minister spoke by
phone to U.S. Defense Secretary Robert Gates on Sunday.
Admiral Mike Mullen, Chairman of the Joint Chiefs of Staff
and highest-ranking U.S. military officer, praised the
"professionalism" of Egypt's armed forces as its troops
refrained from a crackdown on protesters. Egypt receives about
$1.3 billion a year in U.S. military aid.
INVESTORS NERVOUS
The crisis in Egypt follows a revolt that toppled the leader
of Tunisia two weeks ago, and a wave of popular anger sweeping
other countries in North Africa and the Middle East.
Financial markets around the globe opened on Monday bracing
for the impact of the weekend's events in Egypt. Brent oil hit a
28-month high, just pennies below $100 a barrel.
Share prices fell across Asia. Japan's Nikkei share average
finished 1.2 percent lower, following Wall Street, which had
closed down 1.8 percent on Friday.
"To the extent that instability continues, investor reaction
will most likely push oil and Treasury bond prices higher, and
global equities lower," Mohamed El-Erian, co chief investment
officer at bond giant PIMCO, told Reuters.
"The greater fear is that the turmoil could spread to other
Middle East countries, including even Saudi Arabia. If that
happens, then all bets for oil prices are off," ANZ Bank
economist Sharon Zollner said in a note to clients.
Egypt's own financial markets will be closed for a second
working day in a row on Monday and the turmoil could quickly run
down its substantial reserves if it continues.
An Egyptian opposition coalition that includes the mass
Islamist movement the Muslim Brotherhood has turned to Mohamed
ElBaradei, former head of the U.N. nuclear watchdog, to form a
national unity government and make contact with the military.
ElBaradei has urged Obama to call time on Mubarak.
"It is better for President Obama not to appear that he is
the last one to say to President Mubarak, 'It's time for you to
go," he told CNN.
ElBaradei disappointed the opposition by spending much of
his time abroad since he first launched a campaign calling for
political reform in Egypt last year, but lends the weight of his
international reputation to a movement that lacks a leader.
'NO MORE PHARAOHS'
"I think he is a good guy. He wasn't prepared for what
happened. All we care about is that we don't get another
pharaoh," said Rami Nabil, 39, a businessman camped in Tahrir.
"We need a system of government that is democratic and long
term, not more pharaohs."
A short distance from the protests, shooting echoed over
Cairo. Impromptu neighbourhood watch groups set up checkpoints
across the city centre, checking anyone passing by.
Some of the self-appointed guards said shooting in one area
near Cairo's supreme court was the result of looters in a
chemical company building.
Security, which disintegrated on Saturday and Sunday when
police withdrew from the streets, has been slowly restored.
Extra troops sent into cities helped calm panicked residents and
the official news agency said police patrols had resumed.
While the army has sought to stop lawlessness, there is no
sign it is willing to drive the protesters off the street.
"In the next few days security and stability will return,"
said Brigadier Atef Said in Suez, east of Cairo and the scene of
some of the worst of the violence between police and protesters.
"We will allow protests in the coming days. Everyone has the
right to voice their opinion. We're listening and trying to help
and satisfy all parties. We're not here to stop anyone. These
are our people," he said.
