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.

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

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Federal Agencies Brace for Deep Cuts Post-'Cliff'

Dec 7, 2012 4:22pm

Toby Jorrin/AFP/Getty Images

With the “fiscal cliff” quickly approaching, federal agencies are stepping up preparations for deep automatic budget cuts that will kick in Jan. 2 unless the White House and Congress can reach a deal.

The Office of Management and Budget told ABC News that a memo went out to federal agencies earlier this week seeking “additional information and analysis” in order to finalize spending cuts required if we go off the cliff.

The agencies are considering which workers to furlough, projects to put on hold and offices that will have to close.

The request follows the administration’s release of a 400-page report in September that outlined the budget areas to be impacted by the $1.2 trillion in automatic spending cuts and what percentages they would be slashed.

READ MORE: White House Details ‘Doomsday’ Budget Cuts

Billions of dollars could be slashed from defense operations and maintenance programs. Medicare would take a two-percent hit, trimming millions in payouts to health care providers. Scientific research programs would be gutted. Aid for the poor and needy would be sharply curtailed.

The report also detailed operations that would be exempt from any cuts, including active-duty military operations, nuclear watchdogs, homeland security officials, veterans care and other critical areas.

READ: Pentagon Begins Planning for ‘Cliff’ Cuts

Asked about the agency preparations underway, White House spokesman Jay Carney said Wednesday that OMB “must take certain steps to ensure the administration is ready to issue such an order should Congress fail to act.”

“Earlier this week, OMB issued a request to federal agencies for additional information to finalize calculations on the spending reductions that would be required,” Carney said.

“This action should not be read … as a change in the administration’s commitment to reach an agreement and avoid sequestration.  OMB is simply ensuring that the administration is prepared, should it become necessary to issue such an order,” he said. “OMB will continue to consult with agencies and will provide additional guidance as needed.  This is just acting responsibly because of the potential for this happening.”

Get more pure politics at ABCNews.com/Politics and a lighter take on the news at OTUSNews.com.

More ‘Fiscal Cliff’ Coverage From Today:

SHOWS: World News

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Egypt struggle seen costing Mursi, even if he wins

CAIRO (Reuters) - The crisis unleashed by President Mohamed Mursi's bid to wrap up Egypt's transition on his own terms has eroded his nation's faith in their nascent democracy and will complicate the already unenviable task of government.

His effort to drive through a constitution against the wishes of major sections of society, including a Christian minority, has damaged prospects for building consensus needed to tackle challenges ahead, such as fixing a broken economy.

Having promised to be a president for all, Mursi stands accused of putting the interests of his group, the Muslim Brotherhood, ahead of others who say their aspirations are not reflected in the draft to be put to a December 15 referendum.

On the other side, suspicions harbored by Islamists towards their secular-minded opponents have only deepened as a result of the turmoil ignited by Mursi's effort to fast-track the final stage of the transition from Hosni Mubarak's rule.

With the more extreme among them opposed to the very notion of democracy, the Islamists say their rivals are not respecting the rules of the game that put them in the driving seat by winning free and fair elections.

People anxious to see Egypt recover from two years of turbulence fear bad blood could persist and squash hopes for cooperation needed to help Mursi rule smoothly and deliver much-needed reforms.

"If they succeed in the referendum, they will see that as a step forward, but not without cost," said a Western diplomat.

Though Mursi won international praise for mediating a truce in Gaza, the violence on his own streets worries the West and particularly the United States, which has given Cairo billions of dollars in military and other aid since Egypt made peace with Israel in 1979. U.S. President Barack Obama told Mursi on Thursday of his "deep concern" about casualties during protests.

A victim of the polarization could be the Brotherhood's plans to forge electoral alliances with liberals in forthcoming parliamentary polls. The head of the Brotherhood's Freedom and Justice Party told Reuters this week he saw such alliances as preferable to an ideological tie-up with other Islamists.

The divisions are now playing out in the streets. Seven people were killed and hundreds wounded this week in clashes between Islamists and their rivals. A call by Mursi for dialogue was rebuffed by activists who are to protest again on Friday.

"We said that this state of polarization, if it was not dealt with properly, would reach this point, and it has," said Ayman Al-Sayyad, who quit his post as a Mursi adviser on Wednesday following an eruption of violence.

"This was the scene that we were trying to avoid," he added in an interview with al-Hayat television.

The inclusive image Mursi had tried to build around his administration was one of the first victims of the crisis that mushroomed following a November 22 decree that expanded his powers and protected his decisions from judicial review.

RESIGNATIONS

A Christian and a woman were among the first to resign from his staff, as surprised by the decree as most Egyptians. Despite an early bout of violence, Mursi showed no sign of wavering and appeared to brush off his critics.

"I see things more than they do," he told Time.

With speculation swirling around how he took the decision, Egyptians long suspicious of the Brotherhood have concluded Mursi is running the country at the group's command.

In response, the Islamists complain that many of Mursi's attempts at outreach were rebuffed early on. Their view of the opposition has grown dimmer through the crisis. Brotherhood members have started to dismiss opponents as "feloul", meaning "remnants" - a pejorative implying loyalty to Mubarak.

"The really unfortunate side effect of the last two weeks is the political atmosphere has become really toxic. I fear that could endure long past the current crisis," said Elijah Zarwan, a fellow with the European Council on Foreign Relations.

"The next government is going to have to move very quickly to address many problems and it will need cooperation. In the current atmosphere, it is hard to imagine others cooperating."

Such cooperation will be at a premium for introducing policies aimed at reining in a crushing budget deficit and staving off a balance of payments crisis. Egypt's economy has lost $70 billion to $80 billion of economic output since Mubarak was ousted, in one economist's estimate.

Top of the economic to-do list are measures to cut back on fuel subsidies - one of the biggest drains on state finances. Tweaks to such support are bound to be unpopular in a nation where both rich and poor have grown used to cheap petrol.

"He has inherited an economy that is weak and needs serious surgery, so he is going to have to make controversial decisions over the next year or so," said Simon Kitchen, strategist at EFG-Hermes, an Egyptian investment bank.

"Ideally you want to do that in an environment where you have some sort of political consensus," he said.

"THEY BURNED THEIR BRIDGES"

Some subsidy reform and other steps to cut waste are part of a program agreed in principle with the International Monetary Fund for $4.8 billion loan designed to support the budget.

The IMF board meets on December 19 to discuss approval of the loan, which would be seen by investors as a seal of approval for the government's reform program.

Besides the economy, Mursi needs wider backing to tackle other problems including a judiciary which his opponents agree needs overhaul. But even when he sacked the unpopular, Mubarak-era prosecutor general, Mursi was criticized for showing an autocratic streak in the way he went about it.

In the new system of government outlined in the draft constitution, Egypt's next parliament will have a say over the shape of government. A parliamentary election would go ahead some two months later if the constitution is approved in the referendum.

With that in mind, the Freedom and Justice Party is already eyeing alliances to fight the parliamentary election.

FJP leader Saad al-Katatni said in an interview his preference was for an alliance with liberals, not the hardline Islamists whose backing has helped Mursi through the crisis. "Our preferred option is that the alliance not be ideological so that we don't have a split in the nation," he said.

The Brotherhood had kept the nascent hardline Salafi parties at arm's length as they emerged after Mubarak's political demise. That trend has gradually been reversed as the Brotherhood has looked to fellow Islamists for support.

"They burned their bridges with the secular camp and relied heavily on the Salafi camp. We don't feel that is where they naturally want to be right now," said the Western diplomat, speaking on condition of anonymity.

Sentiment from liberal parties suggests the Brotherhood will struggle to convince liberals that it is a trustworthy partner.

"I don't think the man realizes the degree of rebellion and rage the people have," said Ahmed Said, head of the liberal Free Egyptians Party, referring to Mursi. "The country is totally divided and polarized. You have two nations now."

(Writing by Tom Perry; Editing by Peter Graff)

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Troubled UN climate talks enter final day

DOHA: UN talks seeking to halt the march of global warming enter their final day in Doha on Friday with key points still outstanding - extending the greenhouse gas-curbing Kyoto Protocol and funding for poor countries.

Delegates are preparing for a long day and night of final haggling to find consensus on interim ways to rein in climate change and smooth the way to a new deal that must enter into force in 2020.

NGOs and delegates expressed frustration at the pace of negotiations that started on November 26 and coincided with a slew of new scientific warnings that Earth faces a calamitous future of more frequent extreme weather events.

"Political negotiators need to realise urgently that the climate does not negotiate," Greenpeace chief executive Kumi Naidoo told AFP in the final hours of the talks.

"Negotiations are out of touch with scientific reality. This is about human survival."

Funding to help poor countries deal with the fallout from global warming and convert to planet-friendlier energy sources emerged as a key sticking point between negotiators from nearly 200 countries.

Developed countries were pressed to show how they intend to keep a promise to raise climate funding for poor countries to $100 billion (76 billion euros) per year by 2020 - up from a total of $30 billion in 2010-2012.

Developing countries say they need at least another $60 billion between now and 2015.

But the United States and European Union have refused to put concrete figures on the table in Doha for 2013-2020 funding, citing tough financial times.

Another point of contention was "hot air," the name given to Earth-warming greenhouse gas emission quotas that countries were given under the first leg of the 1997 Kyoto Protocol and did not use - some 13 billion tonnes in total.

The credits can be sold to nations battling to meet their own quotas, meaning greenhouse gas levels decrease on paper but not in the atmosphere.

Poland and Russia emitted much less than their lenient limits, and insisted in Doha on being allowed to bank the difference beyond 2012 - a move vehemently opposed by most other parties.

Agreement on hot air is key to the Doha delegates extending the life of the Kyoto pact, whose first leg expires on December 31.

The protocol is the world's only binding pact on curbing greenhouse gases, but locks in only developed nations and excludes major developing polluters such as China and India, as well as the United States, which refused to ratify it.

A new 2020 deal, due to be finalised by 2015, will include commitments for all the nations of the world.

The Philippines urged bickering UN climate negotiators on Thursday to take heed from the deadly typhoon that struck the archipelago this week and wake up to the realities of global warming.

"As we sit here, every single hour, even as we vacillate and procrastinate here, the death toll is rising," climate envoy Naderev Sano told delegates.

German Environment Minister Peter Altmaier predicted on Thursday that the talks "will be on the knife's edge up to the last moment."

- AFP/de

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Salwa Judum leader gunned down in Bastar

RAIPUR: Armed Maoists gunned down Chinnaram Gota, a leader of the controversial anti-naxalite movement 'Salwa Judum', and one of his body guards at village Kuprel in Farsegarh area in tribal Bijapur district of Chhattisgarh.

Police said the incident took place when Chinnaram Gota, who had actively participated in the anti-naxalite movement which began in June 2005, went to his farm accompanied by two of his body guards. The rebels opened indiscriminate firing, killing Gota on the spot. His body guards returned fire but of them sustained serious bullet injures. One of the bodyguards later succumbed to his injuries.

Before fleeing from the spot, the rebels set ablaze the vehicle of the salwa judum leader and also took away three rifles.

Meanwhile, in a separate incident Maoists killed a peon, working in a local school, by slitting his throat at village Amapani in Kanker district. The rebels also left a pamphlet, stating that the person was being punished for being a police informer.

After the 'Salwa Judum', the anti-naxalite movement, the Maoists have been targeting all those who had actively participated in the movement. About a month ago, the rebels made a futile attempt on the life of senior Congress leader Mahendra Karma, a prominent anti-naxalite movement leader and former leader of the opposition in the assembly, by trying to blow up his vehicle in a landmine blast. However, Karma, who enjoys z plus security cover, had a narrow escape.

For the last couple of years, almost all leaders of the Salwa Judum are under tight security and the police had even advised them not to move out of their villages, without providing prior information to the security personnel.

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Celebrations planned as Wash. legalizes marijuana

SEATTLE (AP) — Legal marijuana possession becomes a reality under Washington state law on Thursday, and some people planned to celebrate the new law by breaking it.

Voters in Washington and Colorado last month made those the first states to decriminalize and regulate the recreational use of marijuana. Washington's law takes effect Thursday and allows adults to have up to an ounce of pot — but it bans public use of marijuana, which is punishable by a fine, just like drinking in public.

Nevertheless, some people planned to gather at 12:01 a.m. PST Thursday to smoke in public beneath Seattle's Space Needle. Others planned a midnight party outside the Seattle headquarters of Hempfest, the 21-year-old festival that attracts tens of thousands of pot fans every summer.

"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."

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.

That law also takes effect Thursday, when gay and lesbian couples can start picking up their wedding certificates and licenses at county auditors' offices. Those offices in King County, the state's largest and home to Seattle, and Thurston County, home to the state capital of Olympia, planned to open the earliest, at 12:01 a.m. Thursday, to start issuing marriage licenses. Because the state has a three-day waiting period, the earliest that weddings can take place is Sunday.

The Seattle Police Department provided this public marijuana use enforcement guidance to its officers via email Wednesday night: "Until further notice, officers shall not take any enforcement action — other than to issue a verbal warning — for a violation of Initiative 502."

Thanks to a 2003 law, marijuana enforcement remains the department's lowest priority. Even before I-502 passed on Nov. 6, police rarely busted people at Hempfest, despite widespread pot use, and the city attorney here doesn't prosecute people for having small amounts of marijuana.

Officers will be advising people to take their weed inside, 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."

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" — a non-issue, since the measures passed in Washington and Colorado don't "nullify" federal law, which federal agents remain free to enforce.

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.

Colorado's measure, as far as decriminalizing possession goes, is set to take effect by Jan. 5. That state's regulatory scheme is due to be up and running by October 2013.

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

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November Unemployment Falls to 7.7 Percent

The economy generated 146,000 new jobs in November and unemployment fell to 7.7 percent, better than economists expected, despite worries that superstorm Sandy and the looming fiscal cliff would dampen hiring.

There are still 12 million people unemployed in the country, but the Labor Department said Sandy did not significantly affect jobs.

Many economists had expected employers to have added about 90,000 jobs, causing the unemployment rate to tick up slightly.

The Labor Department's Bureau of Labor Statistics dialed back job gains for the previous two months. In October, the U.S. economy added 138,000 jobs, not the 171,000 reported before the election. The jobs added in September were also revised downward to 132,000 from 148,000.

Stephen Bronars, chief economist with Welch Consulting in Washington, D.C., said many economists believed Superstorm Sandy would have influenced Friday's jobs report after causing devastation especially in the Caribbean and U.S. Northeast.

Businesses and residents in the tri-state region of New York, New Jersey and Connecticut, which produce about one-eighth of U.S. GDP, experienced prolonged power outages and major infrastructure damage.

Bronars said, "Sandy hit the U.S. at a place where it inflicted close to the maximal possible economic damage from a storm that size."

New Jersey and New York were the hardest hit, with at least 120,000 jobs lost, at least temporarily, in those two states.

On Wednesday, payroll provider ADP, reported that private companies added 118,000 jobs in November, down from 157,000 in October. However, ADP includes in its figures people as employed if they remain on payroll, whereas the Labor Department's includes workers as employed if they are paid.

Now that election season is over, employers and investors are surrounded by worries from another uncertainty, the fiscal cliff.

Read more: Eliminating Charitable Deduction Would Help Budget, Hurt Charities

Bronars said the November report will not have quite picked up effects of the looming fiscal cliff, as employers prepare for a mix of government spending cuts and tax increases after the end of the year.

He said the effects of the failure thus far to reach a budget deal are more likely to show up in the December jobs report which will be released in early January.

It is not entirely certain whether the payroll tax holiday will be extended. If it's not, it may raise the cost of hiring workers.

"The next most important issue is sequestration which would bring big cuts to certain employers that depend on government contractors and other employers that indirectly provide support to government contractors," Bronars said. "Employers in these industries may well take a wait and see attitude for hiring until the fiscal issues are resolved."

Concerns about a higher marginal tax rate for top earners, some of whom are employers, may take longer to show a noticeable effect in jobs figures as the disincentive to top earners may take longer to indirectly affect hiring decisions.

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Egypt military orders rival crowds to quit palace area

CAIRO (Reuters) - Egypt's Republican Guard ordered rival demonstrators to leave the area around the presidential palace in Cairo on Thursday after fierce overnight clashes that killed seven people.

Islamist supporters of President Mohamed Mursi withdrew, but the opposition promised more protests there.

The presidency announced that the Republican Guard, whose duties include protecting the palace, had set a 3 p.m. (1300 GMT) deadline for supporters and opponents of Mursi to quit an area they had turned into a battleground.

The military played a big role in removing President Hosni Mubarak during last year's popular revolt, taking over to manage a transitional period, but had stayed out of the latest crisis.

Mursi's Islamist partisans had fought opposition protesters well into the early hours during dueling demonstrations over the president's decision last month to expand his powers to help him push through a mostly Islamist-drafted constitution.

A Reuters witness said the hundreds of Mursi supporters who had camped overnight near the palace perimeter left before the military deadline passed. Dozens of Mursi's foes remained, but were kept away by a barbed wire barricade guarded by tanks.

An official of the opposition National Salvation Front, who asked not to be named, said more protests would take place.

"We are planning marches later today, most probably taking off from Tahrir Square, disregarding the Republican Guard's decision. We had many injuries last night, and we are not going to have their blood wasted."

The commander of the Guard, which has deployed tanks and armored troop carriers to help police pacify the area, said the intention was to separate the adversaries, not to repress them.

"The armed forces, and at the forefront of them the Republican Guard, will not be used as a tool to oppress the demonstrators," General Mohamed Zaki told the state news agency.

Mursi himself, silent in the turbulence of the last few days, will address the nation later in the day, state television quoted a presidential adviser as saying.

The president discussed how to stabilize Egypt with the army chief, General Abdel Fattah al-Sisi, who is also defense minister, and cabinet ministers, the presidency said.

After the sustained clashes of Wednesday night, the streets around the palace were much calmer in the morning, apart from a brief bout of rock-throwing between the hundreds of Islamists and dozens of opposition partisans still at the scene.

STABILITY AT RISK

Army officers on the spot urged the combatants to back off and stop bloodshed that is further dividing Egypt and imperiling its quest for political stability and economic recovery nearly two years after mass protests overthrew Mubarak.

Officials said 350 people had been wounded, as well as the seven killed. Six of the dead were Mursi supporters, the Muslim Brotherhood said. Each side blamed the other for the violence.

Egypt plunged into renewed turmoil after Mursi assumed wide powers on November 22 to press ahead with a mostly Islamist-drafted constitution and forestall any court challenges to it.

The Supreme Guide of the Brotherhood, to which Mursi belonged before he was narrowly elected president in June, appealed for unity. Divisions among Egyptians "only serve the nation's enemies", Mohamed Badie said in a statement.

With at least seven tanks at the palace corners, backed by about 10 armored troop carriers and 20 police trucks, the two sides mostly shouted slogans at each other from a distance.

Around the palace, traffic moved through streets strewn with rocks thrown during violence in which petrol bombs and guns were also used. Hundreds of Mursi supporters had remained there over night, many wrapped in blankets and some reading the Koran.

"We came here to support President Mursi and his decisions. He is the elected president of Egypt," said demonstrator Emad Abou Salem, 40. "He has legitimacy and nobody else does."

Opposition protester Ehab Nasser el-Din, 21, his head bandaged after being hit by a rock the day before, decried the Muslim Brotherhood's "grip on the country", which he said would only tighten if the new constitution is passed.

Another protester, Ahmed Abdel-Hakim, 23, accused the Brotherhood of "igniting the country in the name of religion".

WESTERN CONCERN

The United States, worried about the stability of an Arab state which has a peace deal with Israel and which receives $1.3 billion in U.S. military aid, has urged dialogue. Britain also called for restraint and an "inclusive" political process.

Mursi's opponents accuse him of seeking to create a new "dictatorship" with his November 22 decree and were further angered when an Islamist-dominated assembly hastily approved the draft constitution due to go to a referendum on December 15.

The president has defended his actions as necessary to prevent courts still full of judges appointed by Mubarak from derailing a constitution vital for Egypt's political transition.

Mursi has shown no sign of buckling under pressure from protesters, confident that the Islamists, who have dominated both elections since Mubarak was overthrown, can win the referendum and the parliamentary election to follow.

Mahmoud Hussein, the Brotherhood's secretary-general, said holding the plebiscite was the only way out of the crisis, dismissing the opposition as "remnants of the (Mubarak) regime, thugs and people working for foreign agendas".

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.

The Egyptian pound hit its lowest level in eight years, after previously firming on hopes that a $4.8 billion IMF loan would stabilize the economy. The Egyptian stock market fell 4.4 percent after it opened.

Foreign exchange reserves fell by nearly $450 million to $15 billion in November, indicating that the Central Bank was still spending heavily to bolster the pound. The reserves stood at about $36 billion before the anti-Mubarak uprising.

(This story has been corrected to show Egypt's pound hits lowest level in eight years, but did not fall 4 percent)

(Additional reporting by Tom Perry; Writing by Alistair Lyon; Editing by Giles Elgood)

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Employers urged to engage with foreign workers on grievance channels

SINGAPORE: Human resource experts say it is important for employers to engage with their foreign workers in light of the two labour disputes that have taken place in the past weeks.

They said more can be done to ensure employees have and are aware of the right avenues to air their grievances.

The two labour disputes involving foreign workers have been in the limelight.

And it has been called a "wake-up call" for employers.

So what steps should employers take next?

The Singapore National Employers Federation (SNEF) had earlier urged employers to put in place or re-look their grievance handling procedures. And in light of the current climate, human resource experts say it is timely for companies to reassure and communicate with their workers.

Mr David Ang, Executive Director of Singapore Human Resources Institute (SHRI), said: "What I think companies should do is really to call a briefing or call a communication session with the foreign workers to explain to them that this thing has taken place, why it has taken place and what is wrong in the course of the action that has been taken by this group of people.

"And explain to them that if you do have an issue, and you do have a problem, bring it up to your supervisor. And to some extent, communicating in the language which the workers can best understand will be key to making sure the message goes down."

The Association of Employment Agencies said most foreign workers are aware of the channels to air their problems.

But more can be done.

K Jayaprema, President of the Association of Employment Agencies, said: "What the Ministry of Manpower, maybe what they can do is to include these information they're handing to their workers, a little bit more about the policies, the rules, the regulations of the laws against strikes in Singapore. I think that's what they should include.

"Apart from sounding out to employees about their rights, I think we are looking at the roles and responsibilities of employees also."

Employers also have a part to play.

Experts said clear terms and conditions for workers should be set out in black and white by companies who engage employment agencies.

Mr Ang added: "The bigger companies would certainly have this. But again, down at the ground level, during the course of the recruitment process itself, there could be cases of misrepresentation and so on. So a company must be aware, and be constantly checking on the accuracy of the information given to the workers."

Mr Jayaprema added: "Employers are being informed, it's really whether the employer wants to pass this message down to the employee. So I think it's really the responsibility on the employer now. You can only do so much to educate people, but I think it's the employers who should be more serious about how they are going to manage their workforce."

And experts say it will take two hands to clap to ensure the welfare of foreign workers are looked after.

- CNA/de

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Narhari Modi nets prize catch as Narhari Amin joins BJP

AHMEDABAD: In a prize catch for BJP, Narhari Amin, a former Gujarat deputy chief minister, who recently quit the Congress after being denied ticket to contest the assembly elections, joined the state's ruling party on Thursday.

Amin's entry into the BJP is expected to boost its prospects in the Saurashtra region where renegade saffron party leader and former chief minister Keshubhai Patel's newly launched Gujarat Parivartan Party (GPP) is putting a stiff challenge to Narendra Modi.

Like Keshubhai, Amin belongs to the politically influential Patel community, and has a sizeable following among them.

Reflecting the significance of Amin's arrival into the BJP fold, chief minister Modi, seeking a third consecutive term in office, welcomed him into the party, describing it as a move that would strengthen democracy.

"He is a leader who has remained among people to serve them since his youth. Coming of Amin to the party will strengthen democracy," Modi said.

Amin, who had been sulking ever since he was denied Congress nomination on the ground that he had lost two successive assembly elections, said, "I am sure that BJP will win this election and Modi will secure a hat-trick in the state. I will work for the BJP now."

He had quit Congress on Tuesday along with six prominent leaders including spokespersons of Gujarat Congress Jayanti Parmar and Hitesh Patel, state party general secretary Ashish Amin, farmers cell chairman Dashrath Patel, teachers cell chairman Digvijaysinh Gohil, Ahmedabad Congress vice-president RC Patel.

Another 175 of his supporters also joined BJP today with him.

Amin, among the prominent Congress faces in the state, was involved in the poll preparations right from the beginning and was present at all important events.

The former deputy chief minister said he felt "insulted" as Congress had given tickets to little known faces ignoring leaders who had worked tirelessly to build the party.

"Everything was going fine in the Congress party till ticket distribution. At the time of ticket distribution, differences between the state Congress leaders came to fore as all of them wanted tickets to be distributed to maximum number of their supporters," he said.

"The high command also ignored senior leaders and played along with the choices of state leaders. State leaders after elections did not want to have a challenger and that is why they denied ticket to me and other strong contenders who could have easily won elections," he added.

Modi, who is apparently banking on Amin to neutralize Keshubhai Patel's political clout in the Saurashtra region, said, "Congress has not only cheated people, but it has also cheated party workers by denying them tickets. It is important to defeat family-oriented politics of Congress."

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