Protesters Seethe as Mubarak Clings to Power

MARGARET COKER CHARLES LEVINSON TAMER EL-GHOBASHY

CAIRO—Egyptian President Hosni Mubarak clung to power Thursday, saying on state television that he'd delegate powers to his vice president but stopped short of the resignation demanded by hundreds of thousands of protesters massed in the center of the country's capital.

The immediate reaction in and around Tahrir Square was anger, with protesters chanting "Leave, leave." An Army officer using a loudspeaker tried to calm protesters, who ramped up calls for another large protest Friday.

"The wise person is the one who listens to the words very carefully and weighs them," the officer said about president's speech.

A man exhorted protesters to march on the state television building and presidential palace Friday.

"I've seen fit to delegate presidential powers to the vice president, as according to the constitution," Mr. Mubarak said.

The president's comments contradicted earlier expectations that he would step aside. During the speech, the crowd formed clusters around people with radios and cell phones as a near silence descended on central Cairo's Tahrir Square.

People listened impatiently, waiting for the expected resignation of Mr. Mubarak and expressed frustration at the wordiness of his speech. Hundreds held up shoes, in a symbolic gesture of disrespect.

As the end of the speech neared, a groan was audible in the masses and some began chanting "resign" only to be told to shut up by those still listening.

"I don't like what I'm hearing," said Mohamed Mustafa, 49, huddling with four others around a small radio.

Earlier, Egypt's powerful military signaled it was moving to take control of the country. State television showed the Supreme Council of the Armed Forces meeting—conspicuously without Mr. Mubarak present.

The armed forces "have started taking necessary measures to protect the nation and support the legitimate demands of the citizens," an army spokesman said on state television.

But Mr. Mubarak's speech looked unlikely to resolve a 17-day standoff between protesters demanding Mr. Mubarak's exit and a regime that has steadfastly refused to concede.

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A protester held up an Egyptian flag in Cairo's Tahrir Square Thursday.

Hossam Badrawy, the new secretary-general of the ruling National Democratic Party said he told Mr. Mubarak in a telephone call that the president needed to step down for the good of the country.

"I came to this decision after many meetings, both with the vice president and with many, many of the beautiful, brilliant young people who are gathered in the square. I discussed this with the president. I told him that this move is what the republic needs," said Mr. Badrawy.

The armed forces "have started taking necessary measures to protect the nation and support the legitimate demands of the citizens," an army spokesman said on state television. State television showed the Supreme Council of the Armed Forces meeting—conspicuously without Mr. Mubarak present.

State television said Mr. Mubarak was meeting with Vice President Omar Suleiman and would address the nation Thursday night. Prime Minister Ahmed Shafiq said the decision was the president's and that all options were open.

The dramatic announcements suggested a break in a 17-day standoff between protesters demanding Mr. Mubarak' exit and a regime that had steadfastly refused to concede.

On Thursday evening, Google executive and Egyptian protest leader Wael Ghonim said in his Twitter account: "Revolution 2.0: Mission Accomplished."

The White House had described the situation in Egypt as fluid. During an economic event in Michigan, President Barack Obama called for an "orderly and genuine" transition to democracy in the country. The U.S. president said his administration was watching the situation in Egypt closely and would have more to say about it later.

WSJ's Tamer El-Ghobashy reports from the streets of Cairo on demonstrations expanded beyond Tahrir Square, and that government workers are striking in opposition to president Mubarak refusing to step down.

Mr. Obama also said young people in Egypt have come out in extraordinary numbers to demand change, and that the world was witnessing history unfold.

Regardless of the immediate outcome for Mr. Mubarak, the developments suggest a new, uncertain age in the Middle East, where Egypt has formed a key anchor of U.S. foreign policy and Israel's security.

Israeli Defense Minister Ehud Barak, visiting Washington, voiced oncern about the implications of the unrest in Egypt during his talks with top Obama administration officials and key lawmakers, according to officials briefed on the exchanges.

In a series of meetings in Washington, Israeli officials warned their American counterparts that the changes could start of a broader "earthquake" that could sweep the region and privately questioned Washington's wisdom in pushing for the ouster of "our friends," according to one participant.

Israeli officials voiced support for the Egyptian military, but raised concerns that "it might have a hard time holding it together," another participant said.

Protesters in Egypt had ramped up the pressure in recent days, extending the borders of their demonstration and drawing in allies in the labor unions and professional syndicates.

Another huge crowd gathered in Tahrir Square Thursday despite sometimes heavy rain. The mood quickly turned joyous as soon as the comments by NDP's chief were released.

"I have no definite information, but that is my expectation" that he will step aside," Mr. Badrawy said. "This is the only way to restore confidence in Egypt."

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Crowds continued to gather in Tahrir Square when the first reports of Mubarak's possible exit emerged, forming what appeared to be the largest crowd yet in more than two weeks of mass demonstrations. They waved flags and danced to nationalistic music blaring from loudspeakers. Groups formed circles and danced.

Mustafa Elsadda, a 50-year-old architect, and his wife and two daughters, joined the protesters at the square Thursday night. It was their first nighttime visit. They didn't want to miss what they hoped would be a historic night for their nation.

"We are expecting him to resign," said Mr. Elsadda. "I never dreamed this would happen."

"It means a new era," said his 20-year-old daughter, Alia. "Egypt has so much potential, we just need a leader with integrity and honor, and now maybe we can have that. "

Many protesters were jubilant at the prospect of an exit by Mr. Mubarak, but were already looking ahead to other demands.

"Its our right to celebrate this victory, but the mission is not completed," said Mahmoud Abdel Hamid, 45, whose been at Tahrir since Jan. 28. "All of our demands have to be met. The people want the fall of the system. A new constituion, freedom, free and fair elections. We don't want a military regime. We're happy but we're not finished."

The youth movements that kicked off the uprising with a surprisingly large demonstration Jan. 25 held an emotional and chaotic news conference in the lobby of the Journalists Syndicate building downtown.

They announced the formation of a new group—the Front for the Support of the Egyptian Revolution— that brought in more than 30 elders and prominent opposition figures.

Ziad al-Alimi, one of the youth leaders, called for an end to Egypt's longstanding state of emergency, the dissolution of parliament, a transitional government, new elections, complete freedom of expression and a new constitution.

U.S. intelligence agencies have been caught largely off guard by the fast-moving events in Egypt.

"As you can see, I got the same information you did, that there is a strong likelihood that Mubarak may step down this evening, which would be significant in terms of where the hopefully orderly transition in Egypt takes place," CIA Director Leon Panetta told a congressional hearing on Thursday.

Mr. Panetta said the CIA has received reports that "possibly" Mr. Mubarak would resign but cautioned: "We have not gotten specific word that he, in fact, will do that."

Asked how the transition would work, Mr. Panetta said he doesn't know the "particulars" but said, "I would assume that he would turn over more of his powers to Sulei-man to be able to direct the country and direct the reforms that hopefully will take place."

Mr. Obama's intelligence chief, James Clapper, made only a passing reference to the upheaval in a report to Congress on Thursday on global threats, saying in his prepared remarks that the situation with Mr. Mubarak's regime was "quite fluid."

Earlier, Egypt's powerful military signaled it was moving to take control of the country. State television showed the Supreme Council of the Armed Forces meeting—conspicuously without Mr. Mubarak present.

The armed forces "have started taking necessary measures to protect the nation and support the legitimate demands of the citizens," an army spokesman said on state television.

The dramatic announcements signaled a resolution in a 17-day standoff between protesters demanding Mr. Mubarak's exit and a regime that had steadfastly refused to concede.

They also heralded a new, uncertain age in the Middle East, where Egypt has formed a key anchor of U.S. foreign policy and Israel's security.

Israeli Defense Minister Ehud Barak, visiting Washington, voiced deep concern about the implications of the unrest in Egypt during his talks with top Obama administration officials and key lawmakers, according to officials briefed on the exchanges.

In a series of meetings in Washington, Israeli officials warned their American counterparts that the changes could start a broader "earthquake" that could sweep the region and privately questioned Washington's wisdom in pushing for the ouster of "our friends," according to one participant.

Israeli officials voiced support for the Egyptian military, but raised concerns that "it might have a hard time holding it together," another participant said.

For regional heavyweight Saudi Arabia, the changes represent a significant diplomatic setback that could complicate its foreign policy across the Middle East—with repercussions stretching from Iraq to the Israeli-Palestinian conflict.

In public statements and in conversations with U.S. President Barack Obama, Saudi King Abdullah had offered full support to Mr. Mubarak, an important regional partner for kingdom.

As rumors of Mr. Mubarak's imminent departure spread earlier Thursday, more protesters streamed into Tahrir Square as the sun set, forming what appeared to be the largest crowd yet in more than two weeks of mass demonstrations. They waved flags and danced to nationalistic music blaring from loudspeakers. Groups formed circles and danced.

Several people said they were coming to the square for the first time. Ali Hamdawy, a 49-year-old general manager for a multinational pharmaceutical company, said he decided this was the time, and he brought his two teenage daughters and his teenage son.

"We were afraid to come before, but now we feel confident that it's the right moment," he said. "This is the beginning."