Egypt Military Ruler Suggests Referendum on Immediate Power Transfer

Egypt's military ruler said on Tuesday that presidential elections will be held by end of June 2012, and that a referendum on the immediate transfer of power would be organized if necessary.

Field Marshal Hussein Tantawi, who took power when Hosni Mubarak was ousted, said in a televised address that he had accepted the cabinet's resignation, a week before crucial legislative polls which he said would be held on schedule.

The ruling Supreme Council of the Armed Forces "does not aspire to hold power and is fully willing to transfer responsibility immediately should the people wish it, through a popular referendum if necessary," Tantawi said.

He said the council had accepted the resignation of Prime Minister Essam Sharaf's cabinet and had "tasked it to carry on working until a new government is formed ... to handle the transition in cooperation with the Supreme Council."

Tantawi said his council was also committed to holding parliamentary elections on schedule on November 28 and to "electing a president of the republic by the end of June 2012."

As news of the statement filtered into Cairo's Tahrir Square, where tens of thousands attended an anti-military rally, protesters began to chant against Tantawi.

"The people want the downfall of the Field Marshal" they chanted, just blocks away from clashes near the interior ministry on the outskirts of the square.

"We can't trust what he says. The ball has been in SCAF's court for months, and they didn't do anything," said Ibtisam al-Hamalawy, 50.

"Tantawi is Mubarak copy pasted," said another protester Ahmed Mamdouh, 35.

"It's like Mubarak's speech. Tantawi has to go. That's all there is to it," said Abdul Rahman Ibrahim, a young member of the powerful Muslim Brotherhood.

Tens of thousands had gathered in Tahrir Square on Tuesday after days of deadly clashes between police and protesters demanding democratic change.

At least 28 people have died in the clashes and hundreds have been injured, according to the health ministry.

Sporadic confrontations continued on Tuesday, with police using batons, tear gas and birdshot against demonstrators.

The SCAF had invited the country's political forces for crisis talks amid the spiraling unrest that had threatened to derail the election.

The Muslim Brotherhood, Egypt's best-organized political force, had said it would take part in the talks, which also included presidential hopeful and former Arab League chief Amr Moussa and the head of the liberal Wafd party Sayyed Badawi.

Clashes also erupted in the Mediterranean city of Alexandria, the canal city of Suez and the central city of Qena, the northern city Port Said and Assiut and Aswan in the south, as while as the Nile Delta province of Daqahliya.

Protesters at Tahrir Square indicated they would want to hear nothing less than an announcement of an end to the rule of SCAF, which took over when Mubarak was toppled in February.

"The people want the downfall of the regime," they shouted, echoing the Arab Spring signature chant.

According to the health ministry, at least 28 people have been killed since Saturday, when the security forces first resorted to tear gas, rubber bullets and birdshot in an bid to subdue the protests.

Demonstrators responding by throwing stones and petrol bombs.

The United States said it was "deeply concerned" by the violence and called for democratic elections, as watchdog Amnesty International charged the SCAF's record on human rights was worse than under Mubarak.

Egypt's main stock market index closed down 4.77 percent after trading on the bourse had been suspended for one hour when the main EGX-30 index fell 172.82 points to touch 3,688.17 points, according to the Egyptian Exchange website.

Egypt's military-appointed cabinet of civilian officials announced its resignation late on Monday, but state television initially quoted a SCAF source as saying this was rejected by the military.

The SCAF said it had asked the justice ministry to set up a committee to probe the violence, and called on "all forces and citizens to commit to (restoring) calm, and creating an atmosphere of stability with the goal of pursuing the political process."

The Brotherhood-affiliated Freedom and Justice Party had said it would not join Tuesday's protest, a decision it said stemmed from its "desire not to pull people towards fresh bloody confrontations with the parties that are seeking more tension."

Tuesday's rally was called by the activist groups which spearheaded the popular uprising that forced Mubarak out.

In a Facebook page for the rally, the groups called for the immediate resignation of Sharaf's cabinet and the formation of a "national salvation" government.

They also demanded a presidential election by April 2012 and a complete overhaul of the interior ministry.

Politician Selim al-Awwa told state news agency MENA earlier on Tuesday that the SCAF had agreed to form a national salvation government and hand power to a civilian authority by July 2012.

"It was agreed at the meeting headed by the deputy of the Supreme Council of the Armed Forces Sami Enan ... to form a government of national salvation which would implement the goals of the revolution," said Awwa, a presidential hopeful who attended the meeting.

Several politicians, including ElBaradei, have urged the military to review its plans for the transfer of power to civilians, by organizing a presidential election before the parliamentary polls which are due to begin next Monday and last several months.

The Muslim Brotherhood, although highly critical of the military rulers, is against any postponement of the legislative vote, feeling it is in a strong position.

The military is also under pressure from abroad to halt the violence, with U.S. State Department spokeswoman Victoria Nuland calling for "free, fair elections," and expressing the hope that the polls will proceed on schedule.

U.N. leader Ban Ki-moon urged the military council to "guarantee" civil liberties and he deplored the deaths in the clashes.