World Crisis Online

By Ahmed A Namatalla, Mariam Fam and Maram Mazen – Egypt’s military vowed a transition to democracy “as soon as possible” and indicated the country will honor its peace treaty with Israel following the resignation of President Hosni Mubarak.

U.S. President Barack Obama, in talks with foreign leaders, raised the possibility of international efforts to provide financial aid to Egypt, whose economy has been hurt by work disruptions and the loss of tourism during the pro-democracy turmoil.

The Supreme Council of the Armed Forces, which has said it won’t be a replacement for a legitimate government, will keep the current cabinet in office during the transition process, a military spokesman said yesterday on state television. The council is headed by Field Marshal Mohammed Hussein Tantawi, who has been defense minister.

“The Supreme Council of the Armed Forces is confident in the ability of Egypt’s people and institutions to get through these current critical circumstances,” the council said in a statement.

Middle East markets rose with the DFM General Index gaining 0.5 percent, the most since Feb. 7, at 1:27 p.m. in Dubai and the TA-25 Index in Tel Aviv advancing 1 percent.

Democracy Timetable

The military council hasn’t yet offered a timetable for implementing democratic measures. Nor has it announced a time for lifting the 30-year emergency law, which permits detention without charge, one of the steps that the Obama administration has said would show Egyptians that the changes are real.

Accepting the army’s role, the Muslim Brotherhood, Egypt’s main opposition group, called for an end to the state of emergency, for Parliament to be dissolved and for “free and fair elections under judicial supervision,” it said in an e- mailed statement yesterday.

Obama discussed the Egyptian crisis yesterday with Prime Minister David Cameron of the U.K., Jordan’s King Abdullah, and Turkish Prime Minister Recep Tayyip Erdogan, according to a White House statement issued by e-mail. He raised the issue of “international partners” providing financial support to Egypt.

“The president welcomed the historic change that has been made by the Egyptian people, and reaffirmed his admiration for their efforts,” the statement said.

Peace Treaty

In Israel, where leaders have worried that the turmoil might jeopardize the country’s peace treaty with Egypt, Prime Minister Benjamin Netanyahu welcomed reassurance from the military council that it respects “all regional and international obligations and treaties.”

After 30 years in power, Mubarak, 82, stepped down following a popular uprising that began on Jan. 25 after the resignation of Tunisian President Zine El Abidine Ben Ali on Jan. 14.

Thousands of Egyptians gathered yesterday in Cairo’s Tahrir Square, the focus of the biggest protests, helping to clear rubbish left by demonstrations that had turned to celebrations late Feb. 11. About 2,000 remained this morning as soldiers formed a cordon around the protesters and cars began to flow again into the square. Soldiers forcibly took down some of the tents that protesters had used to camp out in the square.

“We want a civilian state, we don’t want the army to run the country anymore,” said Mohamed Mehrez, 26, the manager of a textile factory in Mahalla.

Artifacts Missing

During the riots and demonstrations, 18 artifacts, including two statues of King Tutankhamun, went missing from the Egyptian Museum, Zahi Hawass, head of the Supreme Council of Antiquities, said on his website.

The police and army are following up on the disappearances with people in custody, Hawass said. The missing objects include a gilded wooden statue of Tutankhamun carried by a goddess and a separate gilded wooden statue of Tutankhamun harpooning.

A nighttime curfew in place since Jan. 28 will be shortened to midnight to 6 a.m., state television reported. Security forces have arrested 10,147 of 23,060 prisoners who escaped during the unrest, state-run Nile News reported yesterday, citing the Interior Ministry.

The military council, in its statement, called on the police to comply with their motto — “The police serve the people” — and urged Egyptians to cooperate “as amicability and cooperation must prevail amongst all.”

Obama said yesterday that democracy in Egypt “will bring more — not less — stability to the region” and said the U.S. will seek to provide support for democratic aspirations in Egypt “including working with international partners to provide financial support,” according to the White House statement.

Key Ally

Egypt was a U.S. ally in the Middle East under Mubarak and one of the main beneficiaries of American aid. U.S. Defense Secretary Robert Gates and Admiral Mike Mullen, Obama’s top military adviser, have made regular telephone calls to their counterparts, according to Pentagon spokesmen Geoff Morrell and Navy Captain John Kirby.

The handover of power was announced by Vice President Omar Suleiman, who read a statement on state television late Feb. 11. Mubarak left Cairo for the Egyptian Red Sea resort town of Sharm El-Sheikh, state television reported earlier. There has been no immediate mention of a role for Suleiman, Mubarak’s longtime adviser and head of intelligence.

“We’re thrilled,” said Waleed Rashed, a co-founder of Six of April Youth, a youth-activist group that helped organize the first protest on Jan. 25. “There are a lot of things still to be worked out, but we trust the army to supervise the transitional period. We hope things will be better. If they are not, we now know the way.”

Oil Fell

Oil fell after the Egyptian leader stepped down, reducing concern that crude shipments from the Middle East will be disrupted. Crude for March delivery declined $1.15 to $85.58 a barrel on the New York Mercantile Exchange Feb. 11, the lowest settlement since Nov. 30. Futures fell 3.9 percent this week and have risen 14 percent from a year ago.

Egypt’s economy may need a stimulus package to help create jobs, Finance Minister Samir Radwan said yesterday.

The stock exchange will open on Feb. 16, Hisham Turk, the bourse’s communications manager, said in a telephone interview yesterday. The bourse’s last day of operation was Jan. 27.

Algerian protesters and police clashed in Algiers yesterday after authorities moved to arrest some of the demonstrators. Earlier, authorities detained 100 people during a peaceful sit- in in the capital inspired by pro-democracy protests in Egypt and Tunisia, Mustapha Bouchachi, head of the League for the Defense of Human Rights, said. The Associated Press reported the number of detainees was about 400.

“This is evidence that the authorities don’t accept peaceful demonstrations,” Bouchachi said in an interview at the protest in Algiers. “2011 will be a year for change. This is the first attempt.”

To contact the reporters on this story: Ahmed A Namatalla in Cairo at anamatalla@bloomberg.net; Mariam Fam in Cairo at mfam1@bloomberg.net; Maram Mazen in Khartoum at mmazen@bloomberg.net

To contact the editor responsible for this story: Andrew J. Barden at barden@bloomberg.net